It seems like every few years or so, the latest and greatest technology appears, and all of a sudden, everyone says it’s going to replace EDI. Years ago, it was XML. A few years back, it was APIs. Now? Enter blockchain. Even Gartner recognizes that the mechanisms of industry hype have promoted block chain to a fever pitch before its time has realistically come for most businesses.
The truth of the matter, however, is that while blockchain is effective for certain types of processes, it will not replace all B2B transactional technology
Blockchain does offer an effective way for trading partners to communicate with one another, and the potential risk in that is minimum. Blockchain is also still relatively new, and there is no denying its potential once fully realized. Blockchain is a shared ledger, so it can ease the process by which information is shared between a buyer, seller, and a third-party logistics supplier. But it’s not going to replace EDI.
The end result is that the way companies currently conduct B2B transactions does not necessarily have to change drastically – if at all. In fact, it can continue to operate the way that it has, while at the same time, blockchain can add an increased amount of visibility between three parties that only makes EDI a more powerful technology in warehouse management.
There’s no denying that blockchain is on the bleeding edge. However, little more than a decade ago, Forrester estimated that daily EDI volume worldwide fell in the neighbourhood of 20 million business transactions. While these numbers have inevitably shifted, and while blockchain represents a disruptive force, the fact is that EDI remains ingrained in transacting everyday business processes across every industry, making EDI a natural fit as a component in any B2B integration technology stack.
