EDI (Electronic Data Interchange)

EDI is the structured, system-to-system exchange of business documents between companies using standardized formats. In logistics, the most common EDI transactions include the 204 (motor carrier load tender), 210 (freight invoice), 214 (shipment status), 856 (advance ship notice), and 997 (functional acknowledgment). Instead of emailing a PDF or calling in a pickup, EDI lets a shipper's system send a load tender directly to a carrier's system – and receive status updates and invoices back the same way.

The format itself follows ANSI X12 standards in North America, with each transaction type specifying exactly which data fields appear, in what order, and how they're encoded. Setting up EDI between two trading partners requires mapping – aligning each party's internal data fields to the standard format – and typically runs through a VAN (value-added network) or an EDI platform like SPS Commerce or TrueCommerce that handles translation, routing, and compliance monitoring.

EDI remains the backbone of B2B data exchange in freight, especially for large retailers, distributors, and 3PLs that require it as a condition of doing business. However, traditional EDI implementation is notoriously slow and expensive – weeks of mapping, testing, and certification for each new trading partner. This is why many modern logistics platforms now offer API-based connectivity as a faster alternative, while still supporting EDI for partners that require it. The practical reality for most shippers is a hybrid: EDI for legacy partners and retailer-mandated transactions, APIs for everything else.