API Has Become a Buzzword. But What Exactly Does It Mean?

Have you noticed how quickly supply chain technology keeps advancing? That’s undeniably great news, as advanced software helps logistics teams automate and accelerate many previously manual processes — from transportation and warehouse management to load-building and route optimization.  

But it can be hard to keep up with all the latest technology advancements, as well as all the acronyms. For example, you’ve probably heard a lot about APIs, but do you ever wonder what exactly they are? Does your business already have them? Do you need them? What function do they serve for the typical logistics team? 

As a modern, full-service 4PL, Redwood relies on application programming interfaces, or APIs, every minute of every day, in our work with the world’s leading logistics teams. APIs are simply integration points that allow different software programs to communicate with one another in real time. If you’ve used an internet search engine or relied on your car’s GPS for directions, those interactions have been supported by an invisible API that enables two-way communication between software applications. 

It's easy to see the value APIs generate for us as consumers. But how can they benefit us as logistics professionals? One easy-to-understand example is track and trace. For the growing number of shippers who require real-time visibility into shipment status, Redwood enables track and trace connectivity via a dedicated API. Shippers’ internal systems are linked to Redwood, as well as trading partners, to create a real-time, step-by-step view of shipments as they progress toward delivery. 

Redwood has also developed a popular Rating API solution for real-time freight procurement that saves customers significant time and costs. This specialized API connects shippers to a private network of carriers, where they can secure immediate guaranteed capacity at real-time rates. Via the Rating API tool, shippers send a query to Redwood. Within seconds, primary and spot rate options are delivered directly into their transportation management system (TMS).  

Whatever TMS customers are using, the proprietary Rating API solution enables easy connectivity and two-way communication. This powerful, purpose-built API gives shippers instant access to more than 26,000 vetted carriers — with truckload, less-than-truckload, temperature-controlled and flatbed capabilities. 

These are just two examples of APIs created by Redwood to meet customers’ special needs. But, for logistics teams running multiple technology systems — such as a TMS, a warehouse management system (WMS), an enterprise resource planning (ERP) solution, and an order management system (OMS) — the possibilities for APIs to create efficiency are endless. And APIs can deliver endless value, by connecting and integrating your most valuable digital capabilities. By maximizing real-time visibility and awareness — across systems and functions — APIs help you control costs, recognize and manage disruptions, improve accuracy and efficiency, and maximize service outcomes. 

While APIs are pretty easy to understand as a concept, it can be tricky to build and implement these interfaces. Special expertise is needed to manage data security and integrity, communication protocols and governance. Processes and workflows may require overhauling to reflect the new level of real-time connectivity across disparate systems. Employees probably need training to understand and fully utilize the new APIs. 

With so much at stake, it’s best to consult with a Modern 4PL, like Redwood, that lives and breathes supply chain technology every day. Redwood is ready to get your new APIs up and running quickly, securely and cost-effectively — without the need to invest in internal staffing or build specialized expertise.  

Redwood can help by integrating your systems on our proprietary integration platform, RedwoodConnect, as well as building custom APIs that answer your specific business challenges. Specific tasks managed by APIs might include transit time queries, management of carrier pickups, document retrieval and shipment expediting. Redwood can also lead cultural changes like creating new workflows and training your employees. 

Just as APIs surround us every day as consumers, there’s a good chance your logistics operations are already relying on these integration points to some extent. Redwood stands ready to help maximize the value of your existing APIs, as well as install new interfaces that drive value across your supply chain.

Reach out to us and learn why API isn’t just another buzzword, but a powerful digital capability you should be leveraging.