The Procurement Glossary » API Integration

API Integration

Technology & Systems

Also known as: API

Definition

Connecting two software systems through an application programming interface so they can exchange data automatically.

Explanation

APIs let procurement platforms talk to ERPs, supplier systems, marketplaces and finance tools in real time — synchronising catalogs, orders, invoices and status updates without manual export. Good integration eliminates re-keying, reduces errors and speeds cycle time.

Example

An API integration pushes each approved order straight into the supplier's system and pulls back a shipping confirmation.

Related terms

• Electronic Data Interchange (EDI) — A standardised format for exchanging business documents such as orders and invoices computer-to-computer.
• Enterprise Resource Planning (ERP) — An integrated software system that manages core business processes — finance, procurement, inventory, HR — on a shared database.
• PunchOut — A connection that lets a buyer leave their procurement system, shop on a supplier's live website, and return the cart for approval and PO.
• Straight-Through Processing — The end-to-end automated completion of a transaction without manual re-entry or intervention.

Frequently Asked Questions

What is API Integration?

Connecting two software systems through an application programming interface so they can exchange data automatically. APIs let procurement platforms talk to ERPs, supplier systems, marketplaces and finance tools in real time — synchronising catalogs, orders, invoices and status updates without manual export. Good integration eliminates re-keying, reduces errors and speeds cycle time.

Can you give an example of API Integration?

An API integration pushes each approved order straight into the supplier's system and pulls back a shipping confirmation.

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