As wholesale businesses scale, operational complexity also scales—more orders, more partners, more data moving. One question that often comes up in this phase is: Should we use EDI or APIs to manage our data exchange? The answer isn’t EDI or API. It’s about when and how to utilize each to support the scaling and automation of your business. 

EDI: The Legacy  

Electronic Data Interchange (EDI) has been around for decades and remains deeply embedded in wholesale and retail supply chains. It’s standardized, reliable, and required by many large retailers. For businesses that deal with high volumes of purchase orders, invoices, and shipment notices, EDI has worked as a proven, structured way to exchange data. 

EDI does have its limits. It’s batch-based, which means delays. Customization is rigid. And integration can be expensive as well as time-consuming, especially for newer systems that weren’t built around EDI formats. 

API: The Modern Connector 

APIs (Application Programming Interfaces) are built for real-time connectivity. They’re flexible, faster to integrate, and ideal for dynamic systems, for example, real-time inventory syncs, pricing updates, and eCommerce integrations. Wholesale has became more tech-driven and APIs provide speed and responsiveness. 

Unlike EDI, APIs allow for more granular data sharing. They integrate well with cloud platforms and modern ERP systems. But APIs aren’t standardized like EDI, which means more variability in how data is handled across partners. 

It’s Not EDI or API. It’s Strategic 

The most successful wholesale businesses use both. EDI is still a must for working with big-box retailers. APIs are for maintaining agile operations, digital platforms, and direct-to-consumer channels. 

Here’s how to think about it: 

• Use EDI when: You’re exchanging high-volume transactional data with retailers who mandate it. 

• Use APIs when: You need real-time visibility, flexibility, and faster integration with systems. 

Planning for Scale 

Scaling wholesale operations is about building stronger, smarter infrastructure. That means periodically evaluating your tech stack and partner network to determine where EDI still serves you, and where APIs could provide better speed and efficiency. 

Think of EDI as your foundation for established, high-volume relationships, while APIs are the tools to build what’s next. 

Legacy systems still matter, but speed, data visibility, and flexibility are just as important. It’s how you combine both EDI and APIs to build a supply chain that scales with you. 

Speak to an expert about scaling wholesale operations.