API Technology Will Shape The Transportation Industry

Technology is capable of improving processes to drive efficiency and is important to moving the logistics industry forward.

Integrating Electronic Data Interchange (EDI) or Application Program Interfaces (API) removes manual processes allowing shippers and 3PLs to spend their time on activities that add value to their business rather than on administrative, time-consuming tasks.

The debate between API and EDI continues in the transportation industry and among decision makers. However, shippers and carriers appear to be moving toward better technology which they have found in APIs.

What is there to gain from API?

1. Real Time Data - Real-time data lets shippers see exact costs for LTL shipping at that exact moment. A freight API offers instant, accurate quotes that are immediately actionable.  In a time of capacity crunch and increasing shipping costs, this information in real-time presents a major benefit.
2. Cloud-based technology - API is a cloud-based technology, so once installed it can be maintained and updated without disrupting shipping operations.
3. Insight - With increased data comes better decisions and improved customer interactions. A freight API offers insights into shipment status and ETA while also decreasing the incidence of errors throughout the process.
4. Availability in the Marketplace – as APIs gain a prominent place in shipping, EDI system vendors are vacating the marketplace.
5. Maintenance – Less expensive to implement than EDI and also requires less time to set up and less personnel to manage than its counterpart.
6. Simplification – a good API offers a simpler interface with less disruption due to implementation and system maintenance.

From a carrier perspective, API allows for an increased focus on the logistics, relationships, and service to their shippers and not pushing paper. For a shipper, automation and the ability to make real-time decisions offer real cost savings.

It is helping to exchange information cost-effectively, securely, efficiently and without error – and shippers are seeing the benefits almost instantly, including: better load planning and routing decisions, cost savings, improved service, and more accurate track and trace.

EDIs will maintain its presence for some time because EDI integrates well with legacy systems. Since most companies continue using legacy systems, EDI is the natural companion and easiest choice in automated order processing.

But like all trends that promote business, APIs will eventually replace EDIs. The decision is about understanding what your business needs today, and accepting and planning for what it will need in the future.