The global supply chain has a bunch of moving parts. Forget the planes, trains, and trucks that make your goods go ’round, it’s also the technology behind all of those moves that ensure everything hits on time. So, let’s talk about that for a moment. What is that technology, and how does it work? And what do APIs and logistics have to do with it?
What Is an API?
API stands for Application Programming Interface, and they typically operate like middleware. Basically, it’s software that allows you to connect one application with another. There are all sorts of different varieties, but companies like Amazon have APIs that work with Amazon Web Services, for example.
Say you have a program—let’s call it Application 1—and you have all sorts of data in it that you’d love to use elsewhere. In fact, Application 2 would be a great place to share this data. How do you make the two connect?
Well, one way to do it is with an API. By writing this software or using an API that already exists), you can let your data talk to other applications, ensuring that they all team up together.
Or, to use a superhero metaphor, if Microsoft Excel is Captain America, an API would allow him to form The Avengers by connecting to other superheroes.
How Are APIs Used in the Supply Chain?
The global supply chain has a lot of different moving parts, sure. There’s a lot of logistical stuff going on behind the scenes. Every stop has to function somehow, and usually that’s with software that helps them track what’s going where and when.
But not everyone uses the same software, and sometimes you want one application to work with another. That’s where an API comes in. By using or creating one, you can sync up your tracking software with your accounting application or whatever needs to be connected.
This kind of integration makes a lot of people who work in big companies happy. See, in those situations, they often have an Enterprise Resource Planning (ERP) system, which is a bunch of pieces of software designed to work together in harmony.
But an API can help get another application entrance to the proverbial party, making it easier for employees to get things done.
The Downside of APIs
You’ve heard it before: “We’ve never let anyone connect to our data from the outside, and we’re not going to start now!”
This old-school thinking is understandable, but it gets in the way of connected conversations.
For a while, we’ve used APIs to connect disparate systems, but we should also be questioning why they’re so far apart to begin with.
The obvious answer is that some companies make one piece of software while others make another, and of course, they don’t talk to each other—why would they? But that creates a disconnected conversation.
Even once the API has linked things together, they’re not really doing anything other than passing information back and forth. They’re not talking like you and I would.
What we need to do is start having connected conversations. In these scenarios, there would be more human interaction. The software doesn’t have to do outside communications because it was built to do what needs to be done right out of the box.
And if there was a need for that to happen, it would be done through tools like AI, so it acted more like a conversation and less like a monologue performed by another actor in a movie.
Now this is not going to happen tomorrow or anything. There is a lot of work to be done for the world of connected conversations to happen, and in the meantime, APIs are the best way to connect all of our systems. But that’s not always going to be the case. And to get there, we all need to be ready for AI
Wanna Hear More?
Of course, I’m ready for a new world of AI, but are you? Is your company? Well, now you can find out for sure. We’ve created a tool we call the AI Ecosystem Readiness Assessment. It’s a test that you take, and once you’ve answered all of the questions, you’ll be presented with a score. That number tells you where you’re at and how prepared you are for our AI future. It’s a pretty fascinating process.
If you want to take the test, head to our site. We’ll get you all dialed in and ready to go and in just a short amount of time, you’ll know what you need to do next.
