API Integration
Also known as: API
API integration is the connection of different software systems through application programming interfaces so they can exchange data automatically and in real time.
An application programming interface (API) is a defined way for two systems to talk to each other. API integration links procurement platforms, ERP, finance, supplier catalogues and marketplaces so information such as orders, invoices, prices and stock flows between them without manual re-keying. Because the exchange is structured and often real time, it keeps data consistent and processes fast.
For procurement, APIs enable capabilities like live catalogue and price updates, automatic order and invoice transfer, and punchout connections to marketplaces. They complement standards such as cXML, OCI and EDI, and reduce the errors and delays of moving files by hand. Well-integrated systems are the backbone of scalable, automated purchasing.
Frequently asked questions
- What is API integration?
- API integration is connecting different software systems through application programming interfaces so they can exchange data automatically and, often, in real time without manual re-keying.
- How is API integration used in procurement?
- APIs link procurement platforms with ERP, finance, supplier catalogues and marketplaces to sync orders, invoices, prices and stock, supporting live catalogues, punchout and automated order and invoice transfer.
Related terms
Enterprise Resource Planning (ERP)
Enterprise resource planning (ERP) is integrated software that manages a company's core processes — finance, procurement, inventory, HR and more — in one system.
Read definitionElectronic Data Interchange (EDI)
Electronic data interchange (EDI) is the computer-to-computer exchange of business documents, such as purchase orders and invoices, in a standard electronic format.
Read definitioncXML
cXML (Commerce XML) is a widely used standard for exchanging procurement documents such as PunchOut sessions, purchase orders and invoices between systems.
Read definitionPunchOut Catalog
PunchOut is a way for a buyer to shop a supplier's live online catalogue from inside their own e-procurement or ERP system and return the cart for approval.
Read definitionGo deeper
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