Choosing the Right EDI Protocol: AS2 vs. SFTP vs. API for Modern B2B Integration

Every modern B2B ecosystem relies on reliable, secure, and efficient data exchange. Whether you’re in retail, manufacturing, logistics, or any industry using EDI, understanding your options for transmission protocols is essential. With acronyms like AS2, SFTP, and API floating around, how do you choose the right approach for your business?

Why Protocol Choice Matters

EDI protocols aren’t just technical plumbing; they shape the scalability, security, and reliability of your supply chain. The wrong choice can slow growth or increase risk, and the right one can enable new partnerships and workflows.

AS2: The Standard for Secure Direct Connections

AS2 (Applicability Statement 2) is the protocol most often mandated by large retailers and manufacturers.

• Security: End-to-end encryption and digital signatures protect sensitive documents.
• Reliability: Automatic receipts (MDNs) confirm successful or failed delivery in real time.
• Interoperability: Because it’s widely adopted, onboarding new partners is often smoother.

Best for:

• Direct, point-to-point exchanges with partners requiring AS2
• Compliance-driven industries (retail, automotive, healthcare, CPG)
• Environments where traceability and audit trails are critical

SFTP: Time-Tested Simplicity for Batch Transfers

SFTP (Secure File Transfer Protocol) is a long-standing option for secure file-based exchanges.

• Security: Transfers occur over encrypted channels.
• Compatibility: Works with many ERP and middleware systems, including older setups.
• Simplicity: Straightforward file transfers with minimal configuration.

Best for:

• Organizations using batch processes (e.g., nightly uploads or end-of-day settlements)
• Partners or systems that require file-based workflows
• SMBs or mixed environments looking for a practical solution

APIs: Real-Time Integration for Modern Systems

APIs (Application Programming Interfaces) are increasingly popular for real-time, event-driven integration.

• Real-Time Exchange: Push or pull data instantly for tasks like shipment updates or inventory checks.
• Automation: Connects directly to cloud ERPs, WMS, and customer portals.
• Scalability: Easily extend workflows or onboard new data types as needs evolve.

Best for:

• Enterprises with modern IT environments (cloud or hybrid)
• Companies requiring immediate visibility into orders, shipments, or inventory
• Businesses building digital services or customer-facing tools on top of EDI

Key Questions to Guide Your Choice

• Are partner mandates driving your protocol selection? If so, AS2 is often non-negotiable, but SFTP is still accepted in many networks.
• Is automation or real-time data a business driver? If you need data immediately in your apps or cloud ERP, API connectivity can future-proof your stack.
• Do you need to support legacy workflows? SFTP allows you to modernize at your own pace without disrupting existing processes.
• Are security and compliance non-negotiable? All three protocols can be secured, but AS2 offers additional confirmation and auditing features out of the box.

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The Migration and Support Factor

Choosing your protocol is only half the battle; executing flawless migrations and supporting hybrid environments is where most organizations hit snags—and get hit by hidden fees. That’s where a VAN with proven expertise (and a human support team you can actually reach) makes all the difference. Nexus VAN specializes in guiding customers through every step, with a risk-free EDI migration and visible, hands-on progress tracking via our Migration Dashboard.

Better B2B Integration Starts with Informed Protocol Choices

There’s no single “best” protocol—AS2, SFTP, and APIs each serve different purposes. Many organizations end up using a blend, depending on partner mandates, system capabilities, and business goals. The key is understanding the trade-offs and selecting a VAN or integration provider that gives you flexibility, not lock-in.

Ready to learn more? If you’re looking for real expertise, honest guidance, and an EDI network built for cost-savings and peace of mind, schedule a demo with us. Let’s modernize your B2B integration together—without risking your operations or your budget.