Application programming interface (API)
What is application programming interface (API)?
An application programming interface (API) is code that lets two software applications communicate directly, without manual data entry or human intervention. It acts as a set of standards and protocols that permits or denies an outside system's request to exchange information with an internal or external program, working as an intermediary as data moves between systems.
APIs speed up and simplify data processing by letting developers integrate data, services and capabilities from other applications, making them an efficient way to extract and share data within and across organizations.
What is the difference between application programming interface (API) and electronic data interchange (EDI)?
Businesses can instantaneously transmit data between technologies using electronic data interchange (EDI) and API.
EDI facilitates the computer-to-computer exchange of standardized electronic business forms such as purchase orders or freight bills. This technology is used primarily 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 to automated logistics capabilities.
How does API technology support transportation management?
Companies using a transportation management system (TMS) leverage APIs to improve data accuracy, streamline communication, automate processes and transmit information. API integrations quickly transmit data between disparate systems, letting TMS platforms access and share real-time information, including tracking, rating, capacity, carrier, shipment and order details.
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 include APIs that support container tracking, claims management, billing, carrier onboarding and contract management.
Real-time data transmission
Using APIs, businesses can access real-time data that improves the accuracy of shipping quotes, tracking and capacity. This information helps companies improve customer service by providing shipment status, location and route updates through vendor portals and other communication channels.
Supply chain visibility
APIs support control tower functionality, which helps transportation companies improve visibility, decision-making, reporting and overall supply chain management.
How technology supports API integration in transportation management
Modern transportation operations move faster when systems exchange data without manual intervention. API integrations extend a TMS's capabilities by connecting it to carrier networks, marketplaces and back-office tools, so each system can focus on its core function while data moves automatically between them.
Key areas where API integration supports transportation management include:
Digital freight matching: connecting shippers with pre-vetted, multimodal carrier capacity so businesses can book according to real-time rates and availability rather than manual phone and email outreach
Automated claims and payment processing: transmitting shipment and invoice data directly between transportation and accounts payable systems to speed up resolution
Control tower visibility and event management: consolidating tracking, exception and status data from multiple carriers and modes into a single view
Shippers use API-connected marketplaces to find available capacity quickly and book according to real-time market rates. Carriers and digital freight providers use the same connections to reach new customers, reduce empty vehicle miles and consolidate loads. Brokers and third-party logistics (3PL) providers use API integrations to access capacity alternatives, fill loads and build relationships with shippers across multiple carrier networks.
An integration platform-as-a-service (iPaaS) can centralize these connections, unifying EDI, API and other data formats into a single point of management and reducing the cost and time of onboarding new partners.