In this article, we’ll explore EDI, XML, and JSON—three key structured data formats—their differences, and how they are used in business. As a business systems integrator and EDI provider with 25 years of experience, we’ll explain why companies rely on these formats and how they impact the speed and accuracy of operations.
What Is Structured Data in Business and Why It Matters
Structured data in business is information organized into predefined formats—like EDI, XML, or JSON—so that systems can instantly parse, validate, and process it without human intervention.
In the business environment, companies exchange thousands of documents every day: orders, invoices, shipment notifications, reports and other important files. This information is essential to business efficiency. To ensure that data is exchanged quickly, accurately, and without unnecessary manual effort, companies rely on structured formats.
What does this mean? Structured data is information organized according to certain rules and structures. Such data can be easily processed using programs, automatically transferred between systems and stored without loss. This is why formats like EDI, XML and JSON are so important in business.
For example, when one supplier’s ERP system (i.e NetSuite) sends an order to a buyer’s ERP or CRM system, they need to “understand” each other. If one uses EDI and the other uses only API with JSON, such a dialogue is impossible without intermediate transformation.
Each of these formats has its own role.
- EDI is the language of automated document flow between companies.
- XML is a flexible and readable format that is often used in integrations and systems.
- JSON is a simple and lightweight format, especially popular in web applications and APIs.
Useful Reading: What is EDI (Electronic Data Interchange)? | EDI2XML
It is important to understand that “machine-readable” does not always mean “human-friendly”. For example, an EDI file may look like a set of incomprehensible symbols and codes. But XML or JSON is easier to read not only for a computer, but also for a person if he works with the data directly.
What is EDI (Electronic Data Interchange)?
EDI stands for Electronic Data Interchange. It is a way to transfer business documents between companies in a standardized electronic format. For example, instead of sending a paper Purchase Order by mail or by email and manually entering it into a business system, companies (trading partners) transfer the document directly from one system to another using EDI. Everything happens quickly, automatically, and without human error.
Why Companies Still Use EDI for Automated Document Exchange
Companies still rely on EDI because its strict, industry‑wide standards guarantee fast, accurate document exchange with large trading partners—minimizing manual errors and integration headaches. By enforcing a uniform syntax (ANSI X12 or EDIFACT), EDI ensures that orders, invoices, and shipping notices are understood exactly the same way by any partner system, speeding up processing and reducing disputes.
EDI is most often used in industries such as logistics, retail, manufacturing, healthcare, and distribution. For example, a large supermarket chain could receive orders, invoices, and shipment notifications from dozens of suppliers every day. Without the automation of such processes in the form of EDI, this would be extremely slow and inefficient.
Thus, EDI can transfer dozens of document types: from orders (850 Purchase Order), shipment notifications (856 ASN), to invoices (810 Invoice), and even payment status documents. This allows trading partners to reduce order processing time, get paid faster, and provide better customer service.
EDI works according to certain standards. One of the most popular is ANSI ASC X12, often abbreviated as X12. This is a standard used mainly in North America. In Europe and international trade, another standard is more often used – EDIFACT. Despite the differences, they have the same goal: to allow computers from different companies to “speak the same language”.
Not all modern platforms have built-in EDI support, which is why different EDI solutions from EDI providers like EDI2XML become important. They convert traditional EDI messages (such as ANSI X12) into more convenient and readable formats – XML or JSON. This is especially relevant for companies working with APIs or web applications that do not directly support EDI.
So, EDI is the basis for automated document flow between companies. It standardizes, speeds up and simplifies business communication, while reducing errors and delays.
ANSI ASC X12 Format: Structure and Codes
ANSI ASC X12 is the most widely used standard for Electronic Data Interchange (EDI) in North America. It was developed in the United States by the American National Standards Institute (ANSI) through the ASC X12 committee and has been in use since the early 1980s. Terms like “ansi x12 edi“, “ansi x12 format” and “ansi x12 standards” are common when talking about standardized business document structures.
This format defines clear rules for transmitting documents such as orders, invoices, shipping notices and dozens of others – together they are called “EDI X12 Transaction Set” or just EDI document. Each document type has its own unique number. For example, 850 is a Purchase Order, 856 is an ASN, and 810 is an Invoice.
One example of an EDI document is EDI X12 850, which is used to send a purchase order. Such documents include dates, identifiers, product descriptions, quantities, and other structured data that can only be understood by programs that can read and process them correctly.
Here is an example of EDI X12 850 file:
How Is an ANSI X12 File Structured?
The ANSI X12 file is structured strictly and consistently. It is divided into segments — these are logical blocks of information. Each segment contains elements separated by special symbols, most often a tilde (~), an asterisk (*) or a colon. This principle of organization is called edi x12 structure.
To correctly “read” the contents of segments, systems use a code directory — ansi x12 code list. This is a kind of dictionary in which each code corresponds to a specific value. Without these codes, the information loses its meaning and becomes unreadable.
If you open an EDI file in a regular text editor, it will look like a string of incomprehensible symbols and abbreviations. But with the help of software parsers, it can be “decomposed” into components and converted into a more readable form, for example, XML or JSON.
You can find the full catalog of EDI codes here:
Parsing and Working with X12 Files
Since X12 files are not intended to be human-readable, they often need to be parsed — that is, broken down into their components and converted into more usable formats, such as XML or JSON. There are open-source tools, such as Python, that allow this. However, using them requires technical knowledge, configuration, and ongoing support. That is why many companies prefer to entrust this process to EDI providers, such as EDI2XML — to ensure accuracy, security, and compliance with standards.
Useful Reading: How to Choose the Right EDI Provider for Small Businesses
Pros and Cons of the ANSI X12 Format
Advantages:
- Widely used in industry, logistics, retail
- Reliable and time-tested
- Allows standardization of all stages of business exchange
Limitations:
- Not human-readable
- Requires knowledge of the structure and codes
- Difficult to integrate with modern web applications without intermediate solutions (for example, conversion to XML or JSON)
It is because of these limitations that companies are increasingly using solutions that convert X12 into more convenient formats for work – we will talk about this further.
What is EDIFACT
EDIFACT (Electronic Data Interchange for Administration, Commerce and Transport ) is an international standard for the electronic exchange of data between companies (trading partners). It was developed by the UN. Unlike X12, which is mainly used in the US and Canada, EDIFACT is used worldwide – especially in Europe, Asia and South America. It is often used in international trade and logistics.
In simple terms, both EDIFACT and X12 are needed to allow companies to exchange documents – for example, orders, invoices, shipping notifications and so on. But they have different structures and formats.
Where is EDIFACT Most Often Used?
EDIFACT is especially popular in the following industries:
- International logistics and transportation (air freight, shipping)
- Customs clearance – for information exchange between businesses and government agencies
- Automotive industry – as a standard way to transmit orders and notifications
- European retail – most chains require EDIFACT support from their suppliers
While EDIFACT and X12 serve the same purpose – to standardize data transfer, their choice depends on the region, industry and requirements of trading partners.
XML: A Flexible Format for Data Exchange Between Systems
XML is a convenient format for exchanging data between systems. XML (Extensible Markup Language) is a universal way of storing and transmitting data. It is often used when it is necessary to exchange data between different business systems. Due to its structure, XML is easy to read by both computers and humans.
XML for Business Integration: Flexibility, Readability, and Validation
Flexibility: you can create your own tags and describe data in a way that is convenient for your company. No strict restrictions.
Standardization: Supported by many platforms and programming languages, which simplifies integration between different systems.
Readability: Unlike EDI, XML documents are easy to read and debug manually, which is convenient for developers and analysts. Compatibility with API – especially with SOAP services, which still actively use XML.
API support: Many modern web services use XML as a data transfer format, especially in SOAP.
What Does an XML Document Look Like?
An XML document consists of nested elements, each with an opening and closing tag,
Below is an example of a Purchase Order (EDI 850) file in XML format. Please note that this is only a partial sample, provided for demonstration purposes.
This format can be easily converted into objects in most programming languages, which speeds up development.
Pros and cons of XML
Pros:
- Universality – widely used across platforms and industries
- Readability – human-readable structure
- Flexibility – supports complex data structures
- Broad support – compatible with many tools and systems
Cons:
- Larger file size compared to formats like JSON
- Parsing complexity on some platforms or in resource-constrained environments
When is XML the Best Choice?
- When integrating with legacy enterprise systems (e.g., ERP, CRM) that natively support XML
- In SOAP-based web services, where XML is the standard format
- When strict data validation is required using XML Schema (XSD)
JSON in Modern APIs: Lightweight Data Exchange and Developer Adoption
If you are even slightly connected with web development or API, you have probably heard about JSON. This is a format that has become an almost universal language of communication between applications. Lightweight, understandable, and what is important – very convenient.
The full name is JavaScript Object Notation, but don’t be scared: JSON has long gone beyond JavaScript and is used almost everywhere.
Why Does Everyone Love JSON So Much?
Well, first of all, it’s simple. Seriously, even if you are not a programmer, you will most likely understand what is written in a JSON file. Everything is based on the “key-value” principle, and it looks something like this:
Note: The image above is a partial example of an EDI 850 Purchase Order represented in JSON format. It does not include the full structure of the EDI document.
Secondly, it is compact. Compared to the same XML, JSON more compact because it doesn’t require opening and closing tags, which means it is transmitted faster over the network. This is especially important for mobile applications and APIs, where every millisecond counts.
And finally — it is great friends with JavaScript. And since most web applications are built on JavaScript, JSON has become their native format.
Key Takeaways:
JSON is easily parsed in almost any programming language — from JavaScript and Python to C# and Go.
Here’s why:
- JavaScript: JSON is natively supported (JSON.parse() and JSON.stringify()).
- Python: Comes with a built-in json module for parsing and generating JSON.
- C#: Has built-in support via System.Text.Json and Newtonsoft.Json (Json.NET).
- Go: The standard library includes the encoding/json package for working with JSON.
In fact, almost every modern programming language has libraries or built-in tools for working with JSON, making it one of the most universally supported data formats today
Where is JSON Most Often Used?
- In REST API, when a web application communicates with a server.
- In mobile applications that receive data from the backend.
- When integrating with cloud services — CRM, ERP, e-commerce, etc.
- Inside microservices, where each service exchanges data with others.
- In short, if two applications want to “talk” to each other, most likely, they will do it in JSON.
Does JSON Have Any Downsides?
Of course, there are no ideal formats.
- JSON does not have a built-in validation scheme, like XML. That is, you cannot pre-set strict rules by which the data should be arranged.
- Comments are not supported. Yes, you can do without them, but sometimes it is inconvenient.
- And if the data structure becomes too complex and nested, JSON may not be so readable.
JSON is like a universal language for modern applications. It is lightweight, fast, understandable, and supported almost everywhere. Yes, it has its limitations, but in most cases, it is a great choice.
Why Is JSON Increasingly Used in Business Integrations?
It may seem that companies no longer use EDI, but this is not true. Companies do not abandon EDI if it is required by their trading partners. If a partner (for example, a large retailer) requires documents in EDI format (X12 or EDIFACT), then the sender is obliged to use this format.
However, within the company, in its internal systems (ERP, CRM, eCommerce), a format more convenient for integration can be used – for example, JSON or XML.
That is why, to connect “EDI-external world” and “JSON-internal”, an intermediate solution is used, for example, such as a fully managed EDI service or EDI web service form EDI2XML company. They convert EDI <-> JSON or XML.
Therefore, it would be more correct to say that companies do not “switch from EDI to JSON”, but strive to use more convenient formats (inside their systems or API), but continue to support EDI where it is required – through conversion.
Intermediate EDI Conversion: Bridging EDI ↔ XML/JSON Workflows
While JSON is not a direct replacement for traditional EDI (such as X12 or EDIFACT), it is becoming an important link in modern integrations. Companies that need to exchange data with partners using the EDI format can use EDI converter solutions such as EDI2XML, which transform EDI messages into JSON (or XML) for subsequent processing or integration into modern web services.
JSON is ideal for new projects where flexibility, speed, and ease of implementation are important. It is especially popular among startups, SaaS platforms, and organizations deploying cloud infrastructure.
Thus, as we have already said above, JSON is not a replacement for EDI, but rather a bridge between classic business formats and the modern digital ecosystem.
Comparison of formats: EDI, XML and JSON
Below is a table that allows you to visually compare three popular data exchange formats – EDI, XML and JSON:
| Characteristic | EDI (X12/EDIFACT) | XML | JSON |
| Year Introduced | 1970s | Late 1990s | Early 2000s |
| Human Readability | Low | High | High |
| Data Volume | Compact | Verbose (many tags) | More compact than XML |
| Standardization | Strict | Flexible | Flexible |
| Structural Flexibility | Limited | High | High |
| API Support | Limited | Used in SOAP-based APIs | Excellent (RESTful APIs) |
| B2B Adoption | Very common | Widely used | Increasing |
| Mapping Requirements | Yes | Sometimes | Often |
| Implementation Complexity | High | Moderate | Low |
| Analysis Tools | Specialized | General-purpose | General-purpose |
This table shows that the choice of format depends on the company’s tasks and the requirements of its partners. Where strict standardization and compatibility with large retailers or logistics companies are important, EDI is still irreplaceable. XML is ideal for more flexible B2B integrations. JSON is becoming a leader in modern web platforms and cloud applications.
How Companies Use EDI, XML, and JSON
Integrating business processes using different data formats depends on the type of company, its technology level, and partner ecosystem. Below we provide both real-life examples from our customers and typical scenarios where EDI, XML, and JSON are used.
EDI in Logistics and Retail
Many large retailers, such as Walmart, Costco, or Canadian Tire, require suppliers to transmit orders, ASNs, and invoices exclusively according to EDI X12 or EDIFACT standards. Example:
A company supplies goods to Walmart and is required to send EDI 850 (Purchase Order), EDI 856 (ASN), and EDI 810 (Invoice) documents.
To fulfill these requirements, it uses an EDI provider (for example, EDI2XML), which processes all the necessary transactions.
XML in ERP and CRM Integration
XML is often used as an intermediate or primary format when transferring data between business systems:
A company has implemented SAP ERP and integrates it with Salesforce CRM. Data (e.g. about customers, orders, payments) is exchanged via SOAP web services with XML as the format.
In another example, an XML file is used as an export format for uploading reports to state tax authorities.
JSON in Cloud and Mobile Solutions
JSON is becoming a key format in SaaS integrations and cloud architectures:
A company uses a cloud warehouse management platform (WMS) with a RESTful API. All commands for retrieving/updating data are executed in JSON format.
In a mobile application of a sales representative, JSON is used to retrieve up-to-date data on products and synchronize orders with the backend system.
Future‑Ready Integrations: Combining EDI, XML, and JSON in One Architecture
In the modern world, formats are often combined:
The supplier receives an order from a customer in EDI 850 format, converts it to XML for processing in the ERP, and then provides the data in JSON for display in the BI panel.
This shows that the choice of format depends not only on technical preferences, but also on the partner environment, solution architecture, and the tasks of a particular business.
Useful reading: Salesforce, EDI, ERP, and WMS Integration: From Chaos to Control
Real‑World Case Study: Supplies Outlet’s EDI→JSON NetSuite Integration
Supplies Outlet is a Nevada-based cartridge retailer. Like many businesses, they work with large trading partners who require data exchange using the EDI standard. However, the company uses a modern cloud ERP system, NetSuite, which operates via a REST API and prefers the JSON format.
To tie it all together and automate it, they implemented a EDI solution from EDI2XML company. The goal was simple but important: to eliminate manual data entry, speed up order processing, and minimize errors.
How it works in practice:
Every 15 minutes, the system automatically checks for new EDI documents from partners. These can be, for example:
EDI 846 — information on stock balances,
EDI 855 — order confirmation,
EDI 856 — shipment notification,
EDI 810 — invoice.
As soon as such documents are received, they are automatically converted to JSON — a format that NetSuite understands — and immediately uploaded to the ERP via API.
The process is also automated in the opposite direction: when a new order is created in NetSuite, the system takes this data, converts it to EDI 850 (Purchase Order) and sends it to the partner via FTP.
What does this give to the business?
Thanks to this integration, about 90% of all orders are now processed automatically. This means:
- no manual data entry,
- fewer errors,
- faster order processing,
- and, of course, saving time and resources.
Which Format to Choose? It All Depends on the Context
When it comes to choosing between EDI, XML and JSON, there is no universal answer. It all depends on how your business is structured, who you work with and what technologies are already used.
If you cooperate with large corporations, logistics operators or government agencies, you most likely cannot do without EDI. This is a time-tested format that strictly follows industry standards and ensures reliable data transfer. If your partners require EDI, you will have to adapt.
XML is still relevant, especially in the corporate environment. It is often used in integrations between ERP and CRM, in banking, in legal documents, wherever a clear structure and data validation are important. Especially if SOAP is used, XML is almost always there.
But JSON is already about flexibility and speed. It is great for cloud solutions, mobile applications, and modern web services. If you have a REST API, microservices, or SaaS – JSON will be your best friend.
In practice, a combination of formats is increasingly common. For example, an order comes from a client in the form of EDI, it is processed in XML within the company, and for analytics or display in the interface, the data is already submitted in JSON. And this is absolutely normal.
The main thing is to understand which format is appropriate where, and how they can be linked together. This will help build a reliable and scalable digital architecture that will work today and tomorrow.
Choosing Your EDI Partner: What to Look for in a Fully Managed Service
If you are looking for a reliable partner who will help you connect EDI, ERP, CRM, eCommerce and other business systems, you have come to the right place.
We are not just a supplier of EDI solutions – we are an integrator who understands how business processes are structured and how to make technologies really work.
Our team will help you:
- choose the right formats and tools,
- automate data exchange with partners,
- integrate everything – from EDI to cloud platforms – into a single, convenient system.
Contact us – and get a free consultation.
We will be happy to discuss your project, suggest optimal solutions and show you how to simplify and speed up your processes.
