Debunk common misconceptions about EDI and discover how modern solutions like AS2 can streamline your business operations
Hirudinee Liyanage
Published: 14 May 2025
Electronic Data Interchange, or EDI for short, has been around for decades, yet many businesses still have a lot of questions about how it works and what it really does. If you’re a business owner or part of an IT or operations team, you’ve probably heard things like “EDI is outdated” or “it’s only for big companies.” Well, today we’re going to break down some of the common myths around EDI and set the record straight.
Fact: While EDI has been around since the 1970s, that doesn’t mean it’s outdated. Think about email, that’s been around for decades, but we still use it every single day. EDI has evolved with technology, and many modern systems support EDI over the internet using secure protocols like AS2, SFTP, or even APIs as hybrids. Large retailers, logistics companies, manufacturers, and government agencies still use EDI for exchanging purchase orders, invoices, shipping notices, and more.
Fact: Nope! That’s simply not true. While it’s true that EDI first became popular among large corporations like Walmart and General Motors, today it’s accessible to small and medium businesses too. Many large companies require their smaller suppliers to use EDI. There are cloud-based EDI solutions and managed service providers like EDI Generator that make it easy for even small businesses to comply without spending a fortune on IT infrastructure.
Fact: Yes, EDI can be expensive if you go with a full-blown on-premise solution and hire a team to manage it. But that’s not the only option anymore. Cloud EDI providers offer scalable, pay-as-you-go plans that significantly reduce upfront costs. In fact, you can start an EDI connection Via AS2 as small as 29 USD per Month. Plus, when you factor in the savings from reducing manual data entry, paper documents, and errors, EDI often pays for itself pretty quick.
Fact: EDI implementation used to be hard and time-consuming, but it’s gotten a lot easier thanks to improved tools and integration platforms. There’s still a learning curve, especially if you’re new to terms like ANSI X12 or EDIFACT. But with the right partner and a bit of patience, it’s totally manageable.
Fact: While APIs are growing in popularity (and rightly so), they’re not necessarily a “replacement” for EDI – they’re more like a complement. Many companies are actually using both EDI and APIs together, depending on the use case. EDI is great for high-volume, standardised transactions, while APIs are better for real-time data access or integrations with newer platforms. It’s not a either-or situation – it’s more of a toolbox where you choose the right tool for the job.
Fact: Retail might be the most visible industry using EDI, but it’s far from the only one. Manufacturing, healthcare, transportation, automotive, finance, and even government all rely on EDI. For example, in healthcare, EDI is used to process insurance claims and eligibility requests. In transportation, it’s used to send shipment status updates and freight invoices. It’s everywhere, just maybe not always visible.
EDI may seem like a dry or complex topic at first, but once you understand how it works and what it can do, it’s actually kind of brilliant. The idea of structured, automated, and standardized data exchange is simple, but powerful. Hopefully, this post cleared up some myths and gave you a better idea of why EDI is still going strong in 2025 and beyond.
If you’re considering EDI for your business, don’t be put off by outdated perceptions. It’s more accessible, affordable, and flexible than ever before. Just make sure you work with the right partner who understands your industry and can support your specific needs. If you are actively looking for an EDI Solution, reach out to us, and our expert team will help you set up your connection.
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