What’s Application Integration? Definition, Benefits, and Examples

The supply chain management industry is full of technical solutions designed to tackle complex logistical problems — there's an app for almost every task. But here's the catch: Many apps don’t work well together. Some don’t even connect at all.

When systems can’t communicate, costs go up, shipments get delayed, and customers grow frustrated. So the real question isn’t whether to integrate your apps — it’s how. 

In this guide, we’ll explain how application integration can streamline your processes and help your business truly thrive.

What’s Application Integration?

Application integration connects different software systems to improve operations. In supply chain management, there are apps for customer management (CRM), information management (MIS), and resource planning (ERP). However, these apps often use different data formats, systems, and communication methods that don’t naturally work together. Application integration solutions solve this by linking apps that struggle to communicate. This improves connectivity, prevents data silos, and makes managing data easier so that businesses operate more efficiently.

Application integration can also connect apps to work together continuously, not just for one-time data transfers but for ongoing functionality.

Types of Application Integration

Every application integration platform uses a specific architecture to manage connections and serve as a central messaging depot. Here are some of the most common types:

Point-to-Point Integration

Point-to-point integration lets two separate systems communicate directly using custom coding or APIs without third-party software.

This method works well when you’re connecting just a few apps. However, creating separate connections for each can become complicated and time-consuming as the number of applications you work with increases.

iPaaS

Integration Platform as a Service (iPaaS) connects apps and data from both on-premises systems and cloud networks. Many iPaaS providers offer customization options, allowing organizations to optimize for mobile use and even integrate data from social media channels.

Enterprise Application Integration (EA) and Enterprise Service Bus (ESB)

EAI, orenterprise application integration, follows a "hub and spoke" model, where a central hub application manages data exchange between multiple connected applications, known as "spoke" apps. Spoke apps can include CRM systems, ERP platforms, supply chain management tools, or any other enterprise software requiring seamless communication.

ESB (enterprise service bus) supports EAI by acting as a middleware layer that standardizes communication between applications. It provides a structured framework with predefined rules, protocols, and transformation capabilities to ensure consistent data access, format conversion, and secure message routing. This allows systems to exchange information, even if they use different data formats or communication methods.

3 Key Application Integration Technologies

Computers and apps don’t work in isolation — they need to communicate with each other to share data and function smoothly. Here are three technologies that make this possible:

Application Programming Interfaces (APIs)

APIs let different software applications talk to each other, making cloud application integration possible. Think of APIs as a server in a restaurant — they take your order (a request from one app), deliver it to the kitchen (another app), and then bring back your food (the response). APIs help apps share information automatically without requiring someone to manually enter data. Regular API testing ensures that these connections work correctly and prevents errors.

Middleware Tools

Middleware is like a translator between apps. Some applications weren’t designed to work together, but middleware helps them communicate by converting data into a format both can understand. This makes it easier for businesses and organizations to connect different software systems.

Webhook Integrations

Webhooks allow integrated applications to send data to each other in real time. Instead of constantly checking for updates (like refreshing your email inbox), webhooks notify an app the moment something important happens. This results in lighter server loads, faster data transfers, and timelier updates in cloud-based systems.

Application Integration: Benefits and Challenges

Benefits

• Lower costs: Using a single application integration platform is more cost-effective than managing multiple point-to-point integrations and hiring a large IT team to oversee them.

• Better data access: With proper integration, you can access your data from anywhere, anytime. Connecting your on-premises and cloud apps eliminates delays and frustrations caused by data silos.

• Easier scalability: When you discover a new app that could improve operations or customer satisfaction, an integrated solution makes it easy to add. This allows you to meet needs faster and turn ideas into reality with fewer obstacles.

• Increased productivity: Tech issues often slow businesses down. Application integration tools handle tasks like error recovery and transaction updates, freeing teams to focus on achieving business goals instead of troubleshooting apps and platforms.

Challenges

• Siloed applications: Not all systems integrate easily. When on-premises or cloud-based services don’t communicate well, they often create isolated data that blocks access and complicates integration.

• Long onboarding time: Building point-to-point integrations takes time and resources. You’ll need skilled workers or freelancers to develop the custom build and troubleshoot issues, and the process must be completed before you can move forward with your next growth phase.

• Ongoing maintenance: Even after implementation, you’ll still need specialists for updates and fixes as systems evolve, which adds to long-term costs.

3

Application integration is at work in many industries, connecting different software systems, improving efficiency, and ensuring smoother operations across industries. Here’s a quick look at the role it plays in three different sectors:

Healthcare

Doctors, hospitals, and specialists need quick and secure access to patient information. Application integration allows healthcare providers to share patient records, whether stored in the cloud or on secure servers, improving communication and patient care.

Manufacturing

Manufacturers produce thousands — or even millions — of products, and tracking everything requires specialized software. Integrated systems help monitor machinery, manage inventory, detect errors, and ensure product quality. By connecting these systems, application integration also boosts productivity and reduces costs.

Supply Chain Management

Moving products from manufacturers to retailers to customers takes precise coordination. Application integration services, such as Electronic Data Interchange (EDI) software, automate important processes like bidding, ordering, tracking shipments, sending updates, and managing inventory levels.

How to Choose the Right App Integration Solution

Before choosing an application integration solution, it’s wise to take some time to assess your business’s needs. Here are a few factors to consider:

Flexibility

Do you need a simple, one-time integration, or do you have multiple apps you need to connect immediately? Pick a scalable application integration platform that supports future growth.

Many application integration platforms offer flexibility to meet your business's unique requirements. A cloud-basedEDI solution like Orderful allows you to adjust workflows and settings, ensuring smooth communication between partners. This adaptability is particularly useful for businesses with specialized needs like mobile optimization, social media data integration, or custom reporting.

Data Management Capabilities

When choosing an integration solution, think about where your data is stored. Do you use both on-site systems and cloud-based apps? If so, your integration solution should support both to keep your data consistent and secure. The platform you choose should also allow data to sync in real time so it's always current and errorless. This way, you can easily manage it no matter where it’s stored and prevent problems as your business grows.

Ease of Use

It’s important to also consider how easy the app integration platform is for your team to use. Compare your staff members' technical skills and select a platform that aligns with their experience. It should be simple but still have advanced features for more complex needs. Also, look for platforms that provide training materials and support to help your team quickly get up to speed. The best app integration solutions should let employees focus on their work rather than struggling with complicated technology.

Increase Your Agility and Productivity with Orderful

Application integration connects all the moving parts of your operations, giving you greater control, visibility, and efficiency. EDI is one key app integration tool that enables smooth, reliable communication with business partners. Orderful’s cloud-based EDI solutions make the process even easier, allowing businesses to streamline data exchange quickly and accurately.  Connect with an EDI expert today to discover how Orderful can help you simplify operations, reduce costs, and scale faster.