APIs (Application Programming Interfaces) allow IT systems to communicate with one another. They act as intermediaries to exchange data and services in a seamless, standardised and secure way. Thanks to this interconnection, APIs make procurement processes faster, more reliable and easier to manage.

• What is an API?
• How does an API work?
• What applications does it have in procurement?
• What are the benefits of APIs?

More than ever, the digitalisation of procurement is accelerating across every organisation. Centralising data, automating orders, managing spending in real time… At the heart of this transformation are APIs (Application Programming Interfaces). These are the interfaces that allow various applications to communicate with each other. They play a key role in e-procurement, boosting the operational efficiency of procurement teams.

What is an API?

The term API stands for Application Programming Interface. These interfaces act as intermediaries between IT systems. They allow systems to exchange data, share features or interact without human intervention. Thanks to APIs, tools communicate automatically, in a seamless, standardised and secure way.

Today, procurement departments use a wide range of digital solutions: e-procurement platforms, ERP, SRM software, accounting software… Without interconnection, these systems operate in silos, requiring human decisions and actions. This is precisely where APIs come in: they break down silos between tools and streamline processes.

Through this technology, experts can already glimpse the future of procurement. This is the view of Guilhain Grimaud, M.Sc., Demand & Procurement Manager at Teoxane: “I am convinced that the companies adopting API-driven supply chains today will enjoy a considerable advantage tomorrow. While others continue to consult catalogues manually and place their orders by hand, these leading companies will have systems that automatically optimise their entire supply network in real time.”[1]

How does an API work?

APIs work on a system of requests and responses. When one system wants to access a resource or feature of another system, it sends a request detailing the action it wants to carry out. This is commonly known as an API request.

If the request is authorised, the API receives it, passes it on to the relevant system, then returns the API response. These exchanges are governed by security mechanisms to verify identity and authorise access.

In a procurement context, this mechanism plays out very concretely: when a buyer consults a supplier catalogue from their e-procurement platform, the API queries available stock, negotiated prices and delivery lead times in real time, before displaying the results. The buyer sees up-to-date information, with no manual intervention on either side: it is the API connection that synchronises the two systems in the background.

Jérémy Mésière, Middleware Architect at Manutan, explains: “An API can be compared to a waiter in a restaurant. The customer (the developer or user software) consults the menu (the API catalogue), then places an order with the waiter. The waiter passes the request on to the kitchen (the database or source system) before coming back with the dish (the response) for the customer. The waiter therefore acts as an intermediary between the two parties, without revealing the kitchen’s recipes (the technical details).”

API: What applications does it have in procurement?

Today, APIs are everywhere across every function in the company. In procurement, they have numerous use cases: from accessing supplier offers to speeding up exchanges. These are particularly relevant advantages for long tail spend, which concentrates the bulk of products and suppliers.

Simplifying access to supplier offers

APIs make it possible to access supplier data in real time, and in particular their product catalogues. This is the case, for example, with the Search 360 solution developed by Ivalua in collaboration with Manutan. This solution gathers both the information from the static catalogues uploaded into the user’s solution and the dynamic information provided by suppliers through a product search API. Users therefore benefit from a single interface to consult their suppliers’ static and dynamic catalogues in real time. Thanks to the use of APIs, users enjoy an optimal experience and save time in their searches.

Speeding up exchanges between stakeholders

Thanks to APIs, exchanges are automated and accelerated between the various stakeholders: customers, suppliers, carriers, logistics partners… For example, when a customer enters their order, the purchase order is automatically sent to the supplier, who in turn sends back a dispatch notice, while the customer can track the delivery in real time. A real saving in time and reliability at every stage of the process.

By connecting systems, APIs also link stakeholders and data, supporting greater efficiency and smoother procurement processes.

API, EDI and Punch-Out: What are the differences?

Within procurement departments, three technologies coexist to connect systems with one another. They are often confused, even though they meet distinct and complementary needs.

• EDI (Electronic Data Interchange) is the long-standing technology for intercompany exchanges. It allows standardised documents (purchase orders, invoices, dispatch notices) to be transmitted in a structured and automated format. Its strength is the reliability on established document flows; its limitation is that it operates in batches, after the fact, without real-time synchronisation.
• Punch-Out allows a buyer to temporarily leave their e-procurement platform to browse directly within a supplier’s online catalogue, before importing their cart back into their own ordering system. It is an enriched browsing experience, but it is still triggered by a human action.
• APIs go further: they allow systems to communicate autonomously and instantly, without human intervention. Prices, stock, delivery lead times: all of this data can be queried and updated in real time, every time the catalogue is consulted.

These three technologies do not replace one another: they complement each other. EDI continues to structure high-volume document exchanges. Punch-Out offers an enriched catalogue experience. APIs round out this ecosystem by adding the real-time layer that the first two lacked. A mature procurement department relies on all three, depending on the nature of the flow and the level of integration sought with each supplier.

What are the benefits of APIs?

APIs offer numerous operational benefits for procurement departments. As well as connecting tools with one another, they help to improve efficiency, visibility and team satisfaction.

Integrating systems

One of the main strengths of APIs lies in their ability to connect heterogeneous systems. They allow different tools to communicate with one another, whatever their technology or architecture. This is a key advantage for companies that rely on a varied software ecosystem.

Automating processes

APIs help to automate manual processes, which are often time-consuming and prone to error. This applies, for example, to the creation and sending of purchase orders, invoice processing, stock updates… It is a tremendous time-saver for procurement teams, who can then focus on higher-value tasks.

Visibility and management

In addition, APIs make it easier to centralise data from different sources. This gives procurement teams a comprehensive, up-to-date view of their supply chain: order tracking, supplier performance, stock levels, spend analysis, and so on. Such visibility helps to make informed decisions and improves the overall management of procurement.

User experience

Lastly, APIs also play a key role in the user experience. They make it possible to offer more intuitive interfaces and smoother journeys. Users no longer have to navigate between several systems or re-enter data, which makes their day-to-day work simpler and more efficient.

APIs are now establishing themselves as a central element in the digital transformation of procurement. By connecting systems, they make it possible to automate processes, streamline exchanges and improve data reliability.

APIs at Manutan

At Manutan, we have been drawing on API technologies for many years to speed up and automate flows between partners. We handle integrations (ERP, e-procurement) with fast connection, dedicated training and support to optimise procurement and improve efficiency (available in Belgium, Czech Republic, Denmark, Sweden, Finland, France, Germany, Hungary, Italy, Netherlands, Norway, Poland, Slovakia, Spain, Switzerland, United Kingdom, Portugal, as at the date of publication of the content).