What Is Application Programming Interface (API)?

At its most basic level, an Application Programming Interface (API) is code that allows two software applications to communicate effectively. APIs are an accessible way to extract data within and across organizations.

What Is Application Programming Interface (API)?

An API acts as a set of standards and protocols that can permit or deny outside software systems to request information from an internal or external software program. APIs act as an intermediary between systems as they exchange data. By API definition, they can simplify and speed up information processing and analysis by allowing developers to integrate data, services, and capabilities from other applications.

How Are APIs used in transportation management?
 

Companies using transportation management systems (TMS) leverage APIs to improve data accuracy, streamline communication, automate processes, and transmit information. Application programming interface (API) integrations quickly transmit data between disparate systems, which allows transportation management systems (TMS) to access and share real-time information, including tracking, rating, capacity, carrier, shipment, and order information.
 

How to Use APIs in Transportation and Logistics Process and Workflow Automation

APIs save time and reduce manual work by combining data from different – and often disparate – sources to automate processes and manage workflows. Examples of this include APIs that support container tracking, claims and billing, carrier onboarding, and contract management.

Real-Time Data Transmission

Using APIs, businesses can access real-time data that helps improve the accuracy of shipping quotes, tracking, and capacity. Using this information, companies can improve customer service by providing updates on shipment status, location, and route through a variety of vendor portals and communication methods.

Supply Chain Visibility

APIs support control tower functionality, which helps transportation companies improve visibility, decision-making, reporting, and overall supply chain management.

What Is the Difference Between an Application Programming Interface (API) and Electronic Data Interchange (EDI)?

Businesses can instantaneously transmit data between technologies using electronic data interchange (EDI) and application programming interface (API).
EDI technology facilitates the computer-to-computer exchange of standardized electronic business forms, such as purchase orders or freight bills. This technology is primarily used to exchange information between older computing and technology systems.

API technology uses newer connection points to centralize information and unify data seamlessly. APIs integrate with many technology systems and are essential in leveraging automated logistics capabilities.