EDI And API: How They Are Used In B2B And B2G E-Commerce

By Bipin Dhungana | January 27, 2025

API EDI

EDI And API: How They Are Used In B2B And B2G E-Commerce

 

Businesses using modern EDI solutions often have to worry about API integrations. While EDI has been an electronic document exchange system for over half a century, modern supply chain solutions in B2B and B2G e-commerce require more.

Fast order processing, real-time visibility, and integration with modern systems all require an approach that can cater to all sorts of challenges. API (Applicable Programming Interface) is a communication method that the current business environment for B2B and B2G transactions needs. 

APIs, working in conjunction with EDI, help businesses modernize their communication, improve efficiency, optimize trading processes, and more. But how are APIs and EDIs used together in a B2B and B2G environment? 

This article aims to explore the concept of EDI and API along with their role in improving the B2B and B2G e-commerce scenario. 

 

1. Understanding EDI and API

First of all, let us understand what EDI and API are. 

 

EDI (Electronic Data Interchange)

EDI is defined as an electronic exchange of business documents in a standard format. Replacing manual paper-based methods, EDI uses automatic transmission of documents commonly used in business transactions like Purchase Orders, Shipping Notices, and Invoices. 

Traditionally, EDI has been extensively used in B2B and B2G transactions with major retailers, suppliers, wholesalers, distributors, and online B2B marketplaces using EDI for business document communication. 

Government agencies also have been using EDI for many years to simplify their procurement of goods and services. Nowadays, almost all government procurement transactions carried out require EDI. Especially, in terms of military procurement, the government has made EDI compulsory

Using formats like ANSI X12, EDIFACT, HIPAA, etc. EDI has traditionally dominated the space for document exchange and is also being used by modern companies that require extensive communication with traditional businesses. 

 

API (Application Programming Interface)

API is simply a programming code that lets two business processes communicate with each other. For example, a business using Google Maps on their website. The website interface connects with the Google Maps API to display their location on the site. 

While EDI mostly uses batch processing in communication, API performs real-time communication. Modern APIs are mostly used in B2B and B2G for real-time visibility and tracking. 

While being a relatively new method of business communication compared to EDI, API has taken the business landscape by storm with its easy-to-program and useful interface, and applications across a wide range of domains. 

 

2. Key Differences Between EDI and API

EDI and API have some major differences. A business needs to understand these differences before making decisions on integrating EDI and API with each other.

Here are some differences between EDI and API in key areas. 

 

3. Use-Cases for EDI and API in B2B and B2G

 

Use Cases of EDI and API In B2B and B2G

 

Now, it is time for us to understand where and how EDI and API both are used in business-to-business and business-to-government exchanges. 

 

EDI Use-Cases in Government Contracting and B2B transactions:

Document Exchange: 

Inventory Updates:

Catalog Management:

Order Fulfilment: 

Invoice generation and payment processing:

Supplier performance reporting and procurement documents:

Supply Chain Automation: 

 

API Use-Cases in B2B and B2G

Real-time data exchange in the supply chain:

Automated updates on order statuses, shipments, and inventory:

Vendor access to procurement opportunities through government platforms like SAM.gov, and DIBBS:

 

4. Integration of EDI and API: Bridging the Gap

 

From the above section, we can see that many areas of EDI and API overlap, especially when it comes to communication and exchanges of documents and messages. 

However, we can also see that EDI focuses on reliable and batch data transmission by transmitting large amounts of data in batches over time whereas API focuses on instant and quick data transmission required for real-time communication and analytics. 

Blending both of these can help businesses in ways that improve their reliability, traditional communication exchanges, and modern communication exchanges. 

 

Why Combine EDI and API?

 

Benefits Of EDI-API Integration

 

Combining EDI and API can be the best of both worlds in terms of effective communication with legacy systems as well as modern operations needed in B2B and B2G. 

Here are several advantages with appropriate examples of combining EDI and API together to form an integrated document exchange system when it comes to B2B and B2G transactions: 

  1. Scalability

With the combination of EDI and API, a business can integrate with more businesses and federal agencies for trade. The addition of functionalities and APIs can make EDI documents be exchanged with the help of an integrated solution making the business process scalable

  1. Supply Chain Automation

Automation of the supply chain revolves around the fact that all business processes can transmit, receive, translate, and process documents simply and efficiently. 

With the integration of API in the existing EDI infrastructure, a business can gain real-time data, input them into automation tools, use AI and predictive analysis more efficiently, and optimize the overall supply chain. 

  1. Smooth Integration With ERP, CRM, WMS, Accounting and other systems

ERP, CRM, WMS, Accounting, and other internal business systems can be interconnected in a much more efficient manner with the help of APIs. Most modern business systems use API for integrations with these platforms. 

Smooth integration with these business platforms allows improved business connectivity and makes the EDI process faster and streamlined, potentially increasing the profits of the business in the long run. 

  1. Communication Efficiency and Reliability

EDI is a tried and tested business communication method that is reliable. While API is a modern method that emphasizes efficiency to the extreme. 

So, it is only natural that the combination of both helps a business improve its communication efficiency and reliability. 

  1. Adherence to compliance standards for B2B and B2G transactions

Maintaining EDI compliance in B2B and B2G trading environments can be challenging. So, integration of API and EDI, with a smooth communication process and automation can be extremely helpful for maintaining compliance. 

Especially regarding government procurement and transactions, API can provide fast and accurate information in real-time while EDI can provide reliable and standardized information on large-scale transactions. 

This combination allows for an optimal scenario where businesses can easily make any changes in internal rules and make prompt decisions based on the current and historical data and avoid non-compliance. 

 

Integration Challenges and Solutions:

 

While integrating API and EDI is an approach being adopted by most modern businesses and yielding potential benefits, there are several challenges and considerations that one must acknowledge and resolve before going forward with the actual implementation of integration. 

Here are some of the most common ones: 

  1. Overcoming data format incompatibility

EDI uses data formats like X12 and EDIFACT. These are standard formats that have been used for decades and have specifics on how business documents are transmitted. 

API on the other hand, uses formats like XML and JSON. They are relatively modern data formats that are flexible and can be used in diverse circumstances of business communication. 

So, an integration of API and EDI needs to take into consideration the incompatibility of the data formats of these two communication methods.

Incompatibility issues can pose a severe challenge and often require extensive planning, communication with partners, and knowledge of EDI and API data regulations of government agencies for businesses involved in B2B and B2G transactions. 

  1. Combining batch processing (EDI) with real-time processing (APIs)

EDI data are often processed in batches. For example, when large transactions of the B2B and B2G nature occur, EDI documents are transferred over a set time in batches. 

On the other hand, the data transmission of API data is more instantaneous and happens in real-time instead of a set time. The data are also looser compared to strict standards followed in EDI formats. 

So, maintaining consistency of data within these two frameworks by combining the batch-processed data with real-time processed data can be difficult. 

The challenge of mapping appropriate data fields to satisfy the EDI and API standards can take both the EDI and API developers a long time, require extensive tests, and consume more resources than anticipated. 

  1. Securing data transmission across both protocols

Security is a major issue in the transmission of data in B2B and B2G transactions. 

While EDI uses protocols like AS2 (Applicability Statement 2), VAN (Value Added Network), and SFTP (Secure File Transfer Protocol), API on the other hand uses protocols like TLS (Transport Layer Security) for encryption in transit, OAuth 2.0 for authentication, JSON Web Tokens (JWTs) for token authorization. 

A combination of these two, while being extremely secure is also extremely challenging. Moreover, a security compromise on one of these protocols can be a breach that opens sensitive data to unwarranted parties. 

So, managing the security in this scenario of EDI and API with differing protocols is most definitely a challenge that a company needs to pay careful attention to. 

  1. Cost control

The cost of integrating two different technologies is always big. In the case of EDI and API, EDI has always been costly to set up and implement. API, while being a relatively cheaper solution has been popular, however, its integration with EDI makes it costly as well. 

Moreover, the integrated platform needs to have its specific type of operation and maintenance features different from the standalone features of both EDI and API. 

Over time, the integration of API and EDI will most definitely benefit the business with its efficiency, and ability to engage seamlessly with multiple partners, but this cannot overwrite the initial cost of setting up and operating the EDI-API integration. 

Moreover, the testing, error resolution, troubleshooting and updates, and other types of additions like adding more standards and file formats for communication will eventually increase the cost of the EDI-API solution. 

Controlling the cost to an appropriate degree while maintaining operational excellence can be a big challenge for a business and requires delicate handling of the finances. 

 

Best Practices for Integration

Now that we have discussed the challenges, it is time to discuss how to overcome these challenges and what can be some of the best ways to implement the integration of API and EDI for a business in a B2B and B2G environment. 

 

Data mapping and transformation tools

First of all, there needs to be proper data mapping and translation that can effectively translate EDI data into API and vice versa. The transformation of data also needs to be done so that the tools can handle the large volume of order data and other related transaction data that usually accompanies B2B and B2G transactions. 

Mapping the data so that the API and EDI can communicate with the ERP, Accounting and other business systems is necessary. This can be done with the help of a cloud-based EDI-integrated solution with API capability for real-time data communication. 

The cloud-based platform will itself act as a tool for mapping and translation of EDI and API data and handle the transmission of data from EDI-API solutions to business systems. 

 

Middleware solutions for combining EDI and API integrations

Middleware solutions can also be implemented to combine the EDI and API integrations. These middlewares can function as a bridge to communicate the different standards, protocols, and communication methods of these two technologies. 

It essentially means that you use a software tool that can act as a platform through which you integrate the EDI and API systems slowly but systematically. The tool can be an in-built tool or a middleware solution available on the market. 

 

Automation and error management through testing and validation

Automation is a critical component of modern EDI solutions that integrate with API. With the continued rise and adoption of automation on all business processes in B2B and B2G transactions, there are bound to be errors somewhere along the way. 

Effective mechanisms like notification systems, Standard Operating Procedures (SOP) for error handling, and proper testing and validation of the integrated solution become critical before implementation.

 

5. Specific API and EDI Requirements for Government Vendors

 

Government vendors keen on doing business with the federal government need to meet some specific EDI and API requirements

Meeting these requirements means your EDI and API integrations do not affect any government operations and transactions, while not meeting these requirements often means non-compliance. 

Moreover, these EDI and API standards can be useful in understanding how the federal government operates on procurement, contracting, management, and other key factors in B2G transactions. 

For example, a specific API standard can tell a vendor the preferred method a government agency uses for communication. This can make the vendor align their protocols that match with the federal agency for better communication and transactions. 

 

GSA Advantage and FedMall API requirements

 

1. GSA Advantage! API Requirements

GSA Advantage requires an API key for authentication. The API utilizes both data formats of JSON and XML. Government vendors must make sure that the catalogs are under the GSA-required format and the products on the catalogs need to be under the TAA compliance.  

2. FedMall API Requirements

The API requirements for FedMall are largely similar to that of GSA Advantage. One difference is that while GSA Advantage requires an API key for authentication, FedMall requires a valid Common Access Card (CAC), Personal Identity Verification (PIV) card, or another electronic certificate.

Vendors must also have an active registration in SAM.gov and a valid Commercial and Government Entity (CAGE) code.

The rest of the issues including catalog management, TAA compliance, and document exchange are pretty much similar to those of GSA Advantage as both FedMall and GSA Advantage are primarily used by federal agencies as online shopping stores to procure products. 

 

GSA Advantage and FedMall EDI requirements

 

GSA Advantage and FedMall have very specific EDI requirements for catalog upload, order processing, invoicing, and shipping notices. 

Some requirements include using the ANSI X12 standards for EDI documents, Functional Acknowledgements to be sent within 24 hours of EDI transactions, etc. 

Some other requirements also include EDI document types, formats, UEI numbers, Shipment Notifications, invoice document processing, and more.

For a more detailed guide on EDI standards required by GSA Advantage and FedMall, you can check out our guide on EDI Compliance In B2B and B2G Trading Environments.

 

DLA and DIBBS 

 

DLA and DIBBS use EDI for most military procurement needs and the vendors need to go through their portal for specific notifications, operations, and sales opportunities as well as transaction guidelines. 

EDI Integration 

In terms of EDI, vendors can use EDI to exchange information on quote submission, order fulfillment, and processing of RFQ (Request For Quotation) through the DIBBS system. 

API Use

While the DLA/DIBBS system does not have specific API use cases, vendors can still use APIs for real-time order tracking of DLA and DIBBS orders, as well as for getting quick notifications on their procurement notices.  

 

SAM.gov and Procurement Data API

 

While the GSA Advantage, FedMall, and DLA/DIBBS do not have API-specific protocols and operations, government vendors can be happy that SAM.gov has various API use cases to streamline government contracting. 

Vendors can use API to get procurement notifications, contract award history, and more through the API standards set by the government. 

If you are a government vendor, you can visit the API documentation of GSA to get information on all related API documentation. 

 

Some Useful SAM.gov APIs for Government Vendors

 

Among the different lists of API documentation for SAM.gov, vendors can have a particular liking to the following: 

SAM.gov Subaward reporting Bulk Upload API

To get information on publishing subcontract and sub-award reports to SAM.gov. 

SAM.gov Product Service Codes (PSC) API

To get product and service code data like PSC Code, PSC Name, etc. 

SAM.gov Opportunity Management API

Data on sales opportunities can be obtained from the SAM.gov site. You need to be an authorized user first to get the data. 

This API might be one of the most important as it allows vendors to get data on new sales opportunities on their preferred platforms like mobile devices at any time. 

SAM.gov Get Opportunities Public API

This is also similar to the opportunity management API and gives opportunity details, making it one of the important APIs. 

SAM.gov Exclusions API

This API helps retrieve Exclusion detail information from SAM.gov. 

SAM.gov Entity Management API

This API helps retrieve Entity detail information from SAM.gov using search parameters.

SAM.gov Assistance Subaward Reporting Public API

This API provides published and deleted federal subaward data. With this data, vendors can get information on what kind of sub-awards have been awarded and prepare accordingly. 

SAM.gov Acquisition Subaward Reporting Public API

This API provides published and deleted federal subcontract data. Again, this makes it quite important for subcontractors wishing to do business with the federal government. 

Apart from these APIs, vendors can also get access to these APIs to get familiar with the government contracting landscape: 

Regulations.gov API

This is a GET API that allows searching for documents, comments, and dockets. “Additionally, a POST API is offered that allows users to submit comments.”

GSA IT Collect Public API

One can access the government-wide IT Portfolio Management and other related IT data sources with this API. 

 

EDI details Submission During Registration on SAM.gov

 

While SAM.gov itself does not mandate specific Electronic Data Interchange (EDI) requirements, it does collect EDI information during the entity registration process. This information facilitates electronic transactions between registered entities and federal agencies.

During registration, entities can provide EDI details, such as:

This also highlights the importance of EDI-API integration in a B2G environment. An API can help government contractors get instant notifications on sales opportunities on SAM.gov as well as awarded contract and subcontract information along with other related information. EDI helps contractors transact with government agencies and follow compliance rules and regulations.

 

6. JSON and XML API Document Requirements for Government Agencies

 

API commonly uses two types of formats JSON and XML. So, it is important to understand the JSON and XML format requirements for government agencies. 

Let us first start with the difference between JSON and XML formats: 

Example of JSON in an API Response

A REST API returning user details in JSON format:

{  "user": {

    "id": 101,

    "name": "John Doe",

    "email": "johndoe@example.com",

    "role": "admin"

  } }

 

Example of XML in an API Response

 

A SOAP API returning user details in XML format:

<user>

  <id>101</id>

  <name>John Doe</name>

  <email>johndoe@example.com</email>

  <role>admin</role>

</user>

 

 

 

Differences Between JSON and XML API

 

Some other differences between XML and JSON formats include: 

Data Usage: JSON uses less data than XML and is more lightweight. 

Structure: XML is more structured than JSON format. 

Security: Both are secure, but comparatively speaking XML is slightly more secure than JSON as it uses DTD (Document Type Definition) and XSD (XML Schema Definition).

Readability: JSON is more human-readable and easy for developers to test and debug. 

Use-Cases; JSON is mostly used in modern systems in RESTful API due to its flexibility, simplicity, and speed. While XML is used in SOAP-based APIs, financial transactions, and government data exchanges along with legacy systems. 

In the government contracting sector, the GSA’s FPDS API (Federal Procurement Data System) uses XML-based SOAP requests for secure procurement data exchange.

As a vendor, you can use XML for catalog submissions on GSA. For example, you can send a Purchase Order (EDI 850) to a government procurement marketplace like GSA Advantage or FedMall after formatting the EDI into proper XML format. 

 

A Step-by-Step Guide: Formatting & Sending EDI-Based XML (ANSI X12 850 Purchase Order)

 

Step 1. Understanding ANSI X12 850 Format

A standard X12 850 purchase order includes:

 

Example of Raw X12 850 Format:

ISA*00*          *00*          *ZZ*SENDERID      *ZZ*RECEIVERID *240123*1234*U*00401*000000001*0*P*>~

GS*PO*SENDERID*RECEIVERID*20240123*1234*1*X*004010~

ST*850*0001~

BEG*00*NE*1234567890**20240123~

N1*BT*Government Agency Name~

N1*ST*Vendor Name~

PO1*1*10*EA*15.99**VC*PROD123~

CTT*1~

SE*6*0001~

GE*1*1~

IEA*1*000000001~

 

For more information on EDI 850: Purchase Orders, you can view our guide on EDI Documents

 

Step 2. Convert The ANSI X12 EDI 850 to XML Format

Since some federal agencies accept the XML format for EDI 850 instead of raw X12 documents, you should convert the X12 Purchase Order into EDI XML.

 

Step 3. Validate the XML EDI against X12 850 XML Schema (XSD) before submission.

Before submission, it is important to validate the document and check whether the XML is properly formatted. 
 

You can use an XML validator like XMLSpy to check the validation and ensure its compliance. 

 

Step 4. Sending EDI XML to Government Platforms

 

Ways To Send XML To Government Platforms

After validation, you can send the XML formatted EDI 850 to the specified government agency. 

There are essentially 3 options for submission of the XML EDI document. 

Option 1; Submit the XML EDI through API Connection. 

Some federal agencies enable API submissions of documents. If that is the case, you can choose this method and send the XML document via a POST request. 

Here is an example: 

curl -X POST "https://api.fedmall.gov/orders" \

     -H "Content-Type: application/xml" \

     -H "Authorization: Bearer YOUR_API_TOKEN" \

     -d @purchase_order.xml

 

After submitting the XML document via API, you should check the response codes. As API communications are often instantaneous, you should be able to get the responses fairly quickly. 

Option 2: Submit the XML via SFTP Upload

This method is common for large file uploads in batches. And many government agencies prefer this method, especially for bulk orders. 

SFTP Upload Command:

sftp user@ftp.fedmall.gov

put purchase_order.xml

You should also verify the success of your upload by checking the response logs. 

Option 3: Submission via VAN (Value Added Network)

Value Added Networks act as electronic mailboxes for document transmission and reception. And many legacy systems use EDI VANs to transmit the 850 XML documents. You can also use this method to transmit the document to the government agency if the agency specifies it. 

 

Commerce Network provides a DoD-certified VAN service for its clients. So, you can contact us if you want to transmit your EDI XML through VAN. 

 

Step 5. Error Handling & Debugging

Errors are often common when submitting documents. So, proper handling and debugging procedures are necessary. You can use pre-validation tools like EDI to XML converter to convert the raw EDI document to XML and XSD validators and EDI validators to validate the documents before submissions. 

As for API errors during the sending of the documents, some common methods to handle them could be: 

 

Final Checklist 

To summarize, by sending the Purchase Order (EDI 850) document in XML format, you should: 

 

7. EDI and API in B2B Transactions for Amazon and Walmart Vendors

 

For vendors transacting in the B2B landscape through Amazon and Walmart superstores, the integration of EDI and API will provide a platform to quickly and efficiently perform order processing, payment, and handling inventory and shipping updates. 

Moreover, the combination of EDI and API is like the combination of old and new, allowing the vendors to quickly communicate business documents with both legacy partners and modern enterprises. 

However, there are certain requirements of EDI and API for both Amazon and Walmart. Handling these requirements as well as overcoming the challenges of integrations for EDI-API platforms and retail marketplaces like Amazon and Walmart will be the key to improving the bottom line of businesses in the present and the near future. 

 

API Integration for eCommerce Platforms

 

Integrating API with Amazon and Walmart e-commerce platforms allows for real-time order processing and inventory updates, along with numerous other functions. 

API integration makes sure that all the operations of order fulfillment from purchase orders to inventory updates, payment processing, shipments, and deliveries are performed quickly and without delays. 

Amazon’s Selling Partner API (SP-API) enables vendors the option for order fulfillment and more on the procure-to-pay cycle. 

As per the SP-API site: “The Selling Partner API (SP-API) is a REST-based API that helps Amazon selling partners programmatically access their data on orders, shipments, payments, and much more. ”

Walmart also has its API called Walmart Marketplace API that lets a vendor handle order retrieval, updates, and cancellations.

With the Walmart Marketplace API, vendors can manage their items, orders, prices, promotions, inventory, and reports on Walmart. 

The API can also be used for Payments Report, Analytics, Orders & Returns Management, Inventory Management, and more. 

More on Walmart Marketplace API

 

EDI Requirements for Selling on Amazon/Walmart

 

EDI is essential for large retailers like Amazon and Walmart. This is true, especially in the case of large-scale transactions and bulk orders with traditional suppliers where EDI can be more convenient than an API connection. 

Core EDI Documents for Amazon/Walmart

 

EDI for Amazon and Walmart

Amazon: Amazon uses EDI for its Vendor Central sellers, particularly large-scale suppliers.

Walmart: Walmart’s Retail Link platform integrates EDI for seamless order and inventory management.

You can view our guide on EDI requirements for Amazon and Walmart for more information. 

 

Challenges in Combining EDI and API for E-commerce

 

Challanges Of EDI-API Integration In ECommerce

 

Integrating both EDI and API into an eCommerce platform is essential for vendors who work with both traditional retailers and modern marketplaces.

However, this dual approach poses several unique challenges. If you are a vendor wishing to use an EDI-API integrated solution to perform transactions on  Amazon and Walmart, consider the following challenges along with their solutions. 

 

Challenge 1: Ensuring Accurate And Timely Order Fulfillment

Orders from APIs (like Amazon SP-API) and EDI systems (like Walmart’s Retail Link) may arrive in different formats. Processing delays can lead to missed fulfillment SLAs.

You can implement middleware to consolidate order data, transforming EDI orders into API-compatible formats and vice versa.

 

Challenge 2: Synchronizing Inventory Between APIs and EDI Systems

When inventory updates come from multiple sources (e.g., EDI 846 documents or API calls), discrepancies can lead to overselling.

Using a centralized inventory management system that integrates with both EDI and API, ensures real-time synchronization and prevents overselling or underselling.

 

Challenge 3: Overcoming Differing Data Structures

EDI uses flat-file formats like X12, while APIs use JSON or XML. This mismatch complicates data integration.

You can use translation tools or Commerce Network’s SAAS platform to convert data formats.

 

Challenge 4: Handling Latency Issues

APIs provide real-time data, while EDI exchanges are often batch-processed, leading to delays in updates.

Set up triggers to process EDI data more frequently or use APIs to complement EDI for time-sensitive transactions.

 

Best Practices for Combining EDI and API

 

Centralized Integration Platforms:

Use platforms like Commerce Network’s NetSuite EDI Connectors or API Gateways to manage both EDI and API data streams.

Data Standardization:

Map EDI documents (e.g., X12 850) to API data fields (e.g., JSON) in a way that maintains a standardized data format within the eCommerce platform be it Amazon, Walmart, or your own storefront.

Error Management:

Set up automated alerts for mismatches, such as inventory discrepancies or order processing delays.

Compliance Monitoring:

Regularly audit EDI transactions to ensure adherence to retailer-specific requirements.

 

8. EDI and API Adoption: Trends and Insights

 

Over the years, both EDI and API have been adopted by business systems for transaction processing in the Business to Government and Business to Business e-commerce landscape. 

API, especially, has grown exponentially in its adoption. However, that does not mean EDI is getting outdone. EDI still maintains a prevalent position in the B2B and B2G marketplace for document exchanges and supply chain automation.

Let us discuss the EDI and API adoption on Government contracting and B2B commerce. 

 

EDI Adoption in Government Contracting

EDI has been adopted in government contracting since 1980. Here are several key moments in history where the federal government adopted EDI for different purposes and on different agencies like GSA, DLA, SAM.gov, and more. 

FedMall (formerly DoD EMALL) and GSA Advantage! Integrated EDI for automated transactions.

Agencies moved from VAN-based (Value-Added Network) EDI to AS2 and web-based EDI for cost efficiency.

The DoD moved to DLMS-based XML and hybrid EDI formats to improve data exchange.

GSA’s FAS (Federal Acquisition Service) modernized EDI to work alongside APIs for real-time data exchange.

FedMall, SAM.gov, and DLA’s procurement platforms continue to use EDI for orders, invoices, and inventory management despite API adoption. 

 

Recommended: Government Contracting With EDI

 

Despite the continued use of EDI in government procurement, there are challenges in maintaining legacy systems. 

Old data formats, compatibility issues with modern communication protocols and mechanisms, and lack of real-time visibility are some concerns vendors and suppliers have to face using legacy EDI.

 While the government is gearing more and more towards a hybrid EDI-API approach, vendors still clinging to legacy EDI systems and not trying to incorporate API will most definitely be left behind if they somehow manage to not violate any compliance issues. 

But how has the API adoption in the government been? Let us find out. 

 

API Adoption in Government Contracting

 

Compared to legacy EDI, the federal government has only recently adopted API in its workings. Here is a simplified timeline of the adoption of API by the US government. 

The government required agencies to adopt API-first approaches when developing software.

GSA’s API Gateway and Login.gov API were introduced for identity verification.

Encouraged cloud-based APIs for effective integration across agencies.

The act also led to APIs in federal procurement (e.g., SAM.gov APIs for contract data).

The government created a central API strategy to improve data interoperability and security.

Today, APIs power multiple federal services, including:

APIs continue to evolve, supporting AI, automation, and EDI integrations for government contractors and suppliers.

 

B2B Vendor Adoption of EDI and API

 

B2B vendors are integrating both API and EDI to streamline operations. While using EDI for large and bulk transactions done in batches, they use API for instant communication, real-time tracking, delivery notifications, and more.

The combination of EDI and API also gives the B2B vendors a unique position where they can communicate with legacy manufacturers using EDI and modern distributors and retailers using API. 

Furthermore, this trend of using both EDI and API is also constantly growing. Meaning, that hybrid systems that use a combination of these technologies will become more and more popular in the future. 

Not only Amazon and Walmart, but most businesses are also adopting the EDI-API mixed approach to communicate with other businesses. 

The inclusion of API in the traditionally dominant EDI has given B2B vendors an effective way to improve efficiency, and customer relations, and optimize the supply chain. 

 

9. How Vendors Can Leverage API and EDI Integration for Direct-to-Consumer Sales

 

Apart from B2B and B2G, vendors now can leverage API-integrated EDI systems for direct-to-consumer sales. In other words, B2C transactions are also rapidly adopting the hybrid model. 

Here is how B2C vendors can use the EDI-API approach to boost their B2C (Business-to-Consumer) sales

 

Commercial Marketplaces (Amazon/Walmart)

Businesses selling products and services on Amazon and Walmart can use API to monitor the fluctuating consumer demands, get instant notifications of any customer complaints, track their shipments, and manage inventory instantaneously for direct-to-consumer sales. 

Dropshipping has become more and more efficient with the use of API for constant tracking and monitoring of customer goods.  

 

API for Online Storefronts

Businesses that have an online storefront can use API for product catalog management, and real-time updates of customer orders and shipping information. A consumer can instantly get a response from the website of a business with the help of APIs like chatbots. 

 

EDI for Seamless Accounting and Order Fulfillment

Using EDI on the other hand has become a norm for businesses with large volume orders through their online storefront. 

Connecting the ERP systems with their storefront and EDI platform can help businesses synchronize orders, payments, inventory stocks, and more on their direct-to-consumer channels like storefronts. 

 

Efficiency Gains with API-EDI Integration

Combining API and EDI can reduce manual tasks, improve order accuracy, and enhance vendor customer service. 

Consumers do not have to wait long for a response as businesses can get instantaneous information through API platforms, and many tasks can be automated with API functions helping businesses save costs and improve the bottom line. 

For example, A consumer wants to know when a specific product will be available on the website of a business. The business can use the hybrid API-EDI platform to get access to large amounts of EDI inventory data, as well as the current shipping status of newly ordered products through API, and provide the consumer with accurate information. 

 

10. Commerce Network’s Web-based SAAS Solution For EDI-API Integration and Management In B2B and B2G commerce

 

We at Commerce Network provide our clients with an integrated solution that combines EDI and API for transactions of all kinds of nature. Our web-based cloud SAAS platform ensures that our clients can easily solve their EDI needs from anywhere and with minimal technical requirements. 

Here is how Commerce Network helps clients with EDI-API integration and management: 

 

1. Real-Time Data Exchange

Our API-enabled instant order processing system helps clients reduce delays from batch-based EDI. Clients can access real-time inventory updates, shipment tracking, invoicing, and more.

 

2. Seamless ERP & Multichannel eCommerce Integration

We have connectors for NetSuite ERP, and QuickBooks Accounting that connect a business’s multichannel e-commerce system through API. So, businesses can sync EDI data with NetSuite, QuickBooks, Walmart, Amazon, GSA, FedMall, or their storefront for efficient management. 

 

3. Hybrid EDI + API Workflows

Companies using legacy EDI partners can still integrate with API-based systems with our platform. We use APIs to convert EDI documents into JSON or XML for modern applications or government exchanges whenever required.

 

4. SFTP, AS2, and VAN service for Security and Government Compliance

Our platform uses APIs to automate document validation to meet government and industry standards. Using security protocols like AS2, HTTPS, and SFTP, we provide security for transmission of EDI and XML data. 

Vendors do not have to worry about government compliance standards as our solution is prepared with all government rules and regulations in mind. Furthermore, we also provide a VAN service for secure data transmission through EDI and API.

 

5. On-Demand Scalability

Our cloud-based APIs can handle higher transaction volumes without infrastructure upgrades. Businesses can scale operations during seasonal spikes without disruptions. 

We also provide custom functionalities and additional program development depending on the needs of the client, helping the operations of the businesses. 

 

6. Faster Trading Partner Onboarding

Our platform allows APIs to simplify trading partner setup by reducing manual configurations. With our wide range of trading partner collaboration networks, our clients can easily connect with suppliers across different industries. 

 

7. Data Visibility & Analytics

Our Web-based dashboard allows clients to get insights on orders, payments, and logistics. We help clients get accurate and real-time data for analytics and making better supply chain decisions. 

All in all our web-based EDI platform using APIs creates a more connected, automated, and agile trading experience for B2B and B2G markets.

 

Contact Us to learn more about our platform and how it can help you. 

 

11. Conclusion

 

API and EDI are both essential for modern B2B and B2G transactions. Businesses relying on only one system cannot compete in the B2B and government contracting sectors. While using an approach that combines EDI and API within a single framework does have significant benefits, there are significant challenges. 

As API and EDI are different technologies, businesses must be careful with their integration. Moreover, there are several requirements and standards, especially in the government sector when it comes to API and EDI. 

One should be aware of these compliance requirements and make sure that their integrated solution can be used in all forms of B2B and B2G trading environments. A good way to ensure that would be to use EDI providers that also use API and can give clients a tailored solution specific to their business needs.

 

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