EDI: A technology that never becomes obsolete – only renewed
We often hear the question: "EDI – isn’t that outdated?"
Yes, EDI can be described as an older technology. After all, it's been in use since the 1960s. But despite its age, it is far from obsolete. In fact, EDI remains highly relevant and widely used in today’s business world. It continues to automate the exchange of business documents like invoices, orders, and shipping notices between companies. So, while EDI may technically be “old” technology, its reliability and ability to streamline business processes keep it very much alive.
That being said, some companies have started to supplement or even replace EDI with newer technologies like API-based systems and cloud solutions. These newer options promise greater flexibility, easier integration, and real-time data exchange. These can indeed be advantages – if you fully understand the technical details. However, we also see cases where the shift to APIs doesn’t always deliver the expected results, and where EDI’s stability still holds out.
There are, of course, clear benefits to APIs:
- Cost reduction: APIs can reduce the costs associated with the special gateways and VAN services that EDI often requires.
- Less complexity: APIs don’t need to adhere to the many different formats that EDI does.
- Detailed feedback: APIs provide more detailed and immediate feedback if errors occur during data transfer.
The Hybrid AI-solution
At iEDI, we’ve noticed a trend toward hybrid solutions, where our customers use both EDI and API depending on their partners and needs. For some, it makes sense to combine both technologies to take advantage of their unique strengths. We’re also seeing more companies combining EDI and API with AI-powered solutions that can make automation even more efficient.
And let’s not forget that, for many, automation still means converting PDFs to EDI – often with the help of AI. This technology allows businesses to automate processes and free up time for other tasks.
So, while EDI may have originated decades ago, it has adapted, endured, and remains a key player in modern business automation.