Maximizing Efficiency with EDI/API Integration in LTL Shipping

It’s been reported that Mark Twain famously said upon reading his own premature obituary: “The reports of my death are greatly exaggerated.” The same can be said about electronic data interchange (EDI) software—as many in the less-than-truckload (LTL) industry lament its demise because application programming interface (API) has entered the supply chain technosphere.

The truth is, EDI is still here and growing. According to Fortune Business Insights, the U.S. EDI software market size was expected to be $1.98 billion in 2023 and soar to $4.52 billion by 2030. Globally, the EDI market is projected to reach $49.21 billion by 2027, according to research by The Insight Partners. These projected upward trajectories point to EDI being very much alive and well.

Of course, API can’t be ignored as it’s typically a faster, more flexible, and more cost-effective technology than EDI—offering significant benefits to the LTL market. API transfers data cloud to computer (rather than computer to computer like traditional EDI), which opens new opportunities to digitize the LTL shipment lifecycle from quote to delivery. The latest innovation is direct-to-carrier transactional APIs that empower shippers and 3PLs with new ways of communicating with their partners.

But what if your organization has already made a sizeable investment in EDI? What if it’s used in other areas of your organization? Do you need to scrap that cost and time investment to be best positioned for the future of the LTL industry? The answer is most likely no.

EDI Alone or a Hybrid Approach with API

A 2023 report by S&P Global Market Intelligence found that digitization in the shipping and logistics industry is growing. Up from about 40 percent pre-pandemic, newly two-thirds of organizations now say they have a digital transformation plan in place—with the remainder considering one. That likely means that there’s already been a significant investment in EDI and organizations won’t likely want to start over.

The good news is they don’t have to. They can build on advancements in EDI technology or consider adding onto to their existing technology by taking a hybrid EDI/API approach.

The future of EDI could bring many innovations—from API integrations that automate the entire LTL lifecycle and augment carrier connectivity to cloud-based EDI solutions that streamline operations and reduce infrastructure costs to artificial intelligence (AI) integrations that can enhance business processes and reduce manual labor. The point being, EDI isn’t anywhere near its demise. It’s simply evolving to address the needs of the LTL industry and enabling improvements through innovations like API integration.

EDI vs. API

EDI empowered the LTL industry to transition from paper-based transactions to an electronic format—speeding processing, reducing errors and improving efficiency. It also dramatically improved the payment process between logistics providers and customers. However, there are drawbacks with EDI. In its traditional form, EDI communicates computer to computer and relies on rigid industry standards and older technology batch files. It also requires a sizeable investment in infrastructure and training.

APIs transmit data from the cloud to computer, enable customization for individual customer needs, and use individual transactions. The latest LTL API from SMC3 digitizes the entire the shipment lifecycle. Through the solution, shippers and 3PLs can receive quotes for volume, contract, broker, and dynamic pricing and transit schedules from multiple carriers. It uses an electronic bill of lading (eBOL) to quickly and securely transmit shipping information to carriers and monitors shipments via real-time messaging.

SMC3’s LTL API solution self-assigns PRO numbers prior to pickups and allows pickups to be scheduled digitally with an immediate confirmation number. In addition, the technology enables shippers and 3PLs to view and download documents, including bills of lading, weight and inspection certification, proof of delivery, and invoices.

Hybrid EDI/API Partnership

The LTL industry doesn’t have to choose between EDIs or APIs. They can have the best of both worlds by implementing a hybrid EDI/API solution. Since many organizations have already invested substantial time and money into building out an EDI solution, adding APIs can evolve systems without having to add a separate API infrastructure.

Adopting a hybrid EDI/API solution requires working with a partner that has knowledge of hybrid integrations. The experts at SMC3 have in-depth knowledge of EDI development and integrations as well as LTL APIs.

We have worked with leading transportation management system (TMS) providers like MercuryGate, Oracle, and Blue Yonder to provide their customers with unmatched LTL freight shipment expertise. For those that don’t have a TMS, SMC3 developed an easy-to-use web application, LTL GO, so shippers and 3PLs can access the shipment visibility and document retrieval capabilities of our LTL APIs.

If you’re looking to implement hybrid EDI/API, it’s critical to find the right partner that can service both API and EDI messaging. By providing solutions using both APIs and EDIs for yours, SMC3 delivers a range of proven tools that provide enhanced connectivity to carriers.