Methods of exchanging documents between business partners have evolved significantly over the past few decades. Before electronic invoicing was possible, hours of time were dedicated to manually submitting data exchanges, resulting in extended turnaround times. Application Programing Interface (API) and Electronic Data Interchanges (EDI) have been critical in increasing efficiency of businesses’ digital communication, and their capabilities continue to improve.
Both technologies make the electronic exchange of information between two entities significantly quicker and more efficient. APIs and EDI have made it possible for companies to map their information together in seconds. In addition to being seamless and automated, these processes guarantee confidentiality for private information.
When working with an inventory finance provider, this software eliminates the wait time for manufacturers and dealers to see their paid invoices, credit line availability, and credit notes.
What is EDI?
EDI has been a dependable software application since the 1980s. It efficiently transfers extremely large quantities of data to business partners through a third-party, ensuring the security and accuracy of the operation. Most businesses implement EDI because its function is critical in managing the supply chain process.
EDI can simplify the onboarding of new partners; the third-party coordinates with the finance provider and later confirms that the partner has been added to the system. EDI is also a strong option in terms of fulfilling security and compliance regulations, and makes it convenient to verify integrity and automatically check that legal guidelines have been followed.
What is an API?
API software was developed in the early 2000s and directly sends electronic information through a server from one entity to another on the Internet. The main difference from EDI software is that APIs do not require a third party to handle the communication and this process is not well suited to large data payloads.
Newer companies tend to prefer APIs due to their lower cost, simpler procedure, and real-time exchange of data. The initial operation of an API is very straightforward; using a spreadsheet platform like Excel is a perfect way to consolidate information necessary for the upload.
One drawback to APIs is that adhering to government regulations is more difficult; as of now, there are no widespread standards approved by the government or industry for this method. Despite this, many companies choose to adopt APIs for their business transactions because of the program’s simple approach and ability to promote consistency.
APIs and EDI at DLL
DLL is committed to innovation and cutting-edge technology to create efficiencies in how our partners run their businesses. In support of our partner companies, DLL offers the option of implementing APIs and/or EDI to simplify the invoicing process.
To ensure the highest level of security for transactions and financial information, DLL has also created our own functional standards. When EDI approvals are delayed due to errors like stale-dated invoices or missing information, DLL and our partner company are both inconvenienced. If this happens, the request is automatically switched to the API system for approval, maximizing efficiency. This method eliminates the need to do manual work, reducing the likelihood of errors and benefitting customers with an immediate confirmation of the activity.
Earlier this month, we announced that DLL’s global proprietary processing hub, @onceCF, is now live in 19 countries. The web-based solution helps DLL to simplify inventory financing for our manufacturers and dealers, giving partners control over the account management and invoicing process, and allowing them to gain a real-time competitive advantage with cash flow optimization, flexible payment options, improved levels of customer support, and higher quality transactional data.
A recent offering allows our partners who do not want to invest in EDI to utilize Email2EDI, a smart capture of invoice information that automatically processes a PDF invoice and uploads into the @onceCF system for customers to access.
Our collaboration with manufacturers and dealers through our @onceCF system helps to reduce cash outflows and allow a quicker turn of inventory, often resulting in higher profits for their business.
To learn more about technologies to support inventory finance, contact the Commercial Finance team.