When you manage EDI for a manufacturing business, all roads seem to lead back to one nagging decision: how should you securely exchange documents with your trading partners? You want predictable costs, no sleepless nights over failed ASNs, and absolutely zero surprise fees — but you also want to keep your systems as simple as possible.
Strip away the acronym soup for a moment. This decision comes down to three things: proof (can you prove a file was sent and received?), control (do you have clear control over access and data movement?), and cost (does this approach chew through time and budget, or make your life easier?).
Use AS2 where big-box retailers or enterprise partners require it — it provides cryptographic proof of delivery. Use SFTP for everything else: it's simpler, cheaper to manage, and secure enough for most manufacturing EDI flows. HTTPS is best for direct ERP API integrations. Most manufacturers run a hybrid of all three.
If you ship to big-box stores or enterprise retailers, you may not even have a choice. AS2 was built to deliver business documents with cryptographic receipts called MDNs — non-repudiable proof that your invoice, order, or ASN was received. You use digital certificates instead of passwords, which is great for audit trails but requires active certificate management for every trading partner. Certificate outages or missed rollovers are a well-known pain point for EDI veterans.
SFTP (running over SSH) is as solid as decades of IT practice can make it. It encrypts everything in transit, supports both keys and passwords, and is easy to automate for batch processing. The trade-off: there's no standardised cryptographic receipt like AS2's MDN. For most manufacturing EDI flows — especially mid-market distributors, smaller retailers, or 3PLs — SFTP is the right mix of simple, secure, and cost-effective.
HTTPS is what AS2 itself runs on top of, and it's the standard for modern EDI APIs. On its own it gives you a secure channel but without standardised receipts or digital signature workflows. If you want to automate EDI directly into your ERP via API, HTTPS is an excellent option for internal or forward-looking tech partners.
| Criteria | AS2 | SFTP | HTTPS/API |
|---|---|---|---|
| Proof of Delivery | ✅ Cryptographic MDN receipt | File-level logs only | Status response, not standardised |
| Security | Encrypted + signed with certificates | SSH encryption, keys or passwords | Secure transit, not EDI-specific |
| IT Overhead | High — cert rollovers, MDN tracking, per-partner config | Low — straightforward setup and onboarding | Medium — depends on API complexity |
| Cost Predictability | Can attract special connection fees from legacy VANs | Typically lower cost, fewer surcharges | Varies by provider and integration depth |
| Best For | Big-box retailers, enterprise partners, audit-heavy flows | Distributors, 3PLs, mid-market partners | ERP integrations, modern API-first partners |
| Retailer Mandate? | Often required by Walmart, Target, Amazon | Accepted by most mid-market partners | Growing acceptance for modern integrations |
Here's a five-step framework for making this decision and defending it to IT leadership and finance:
Create a simple matrix: partner name, required protocol (AS2/SFTP/FTP/API), required EDI documents, estimated volume, and compliance risk level. This single exercise clarifies 80% of the decision.
Pick SFTP as your default for low-maintenance partner connections. Use HTTPS/API for direct ERP integration. Run AS2 only where partners explicitly require it or where audit trails are non-negotiable.
Decide whether EDI mapping lives in your ERP or in a VAN. Keeping customisations out of your ERP reduces upgrade risk and makes partner changes faster. A managed VAN handles the mapping so your ERP stays clean.
Move low-penalty, low-volume flows first. Then medium-risk partners. Finish with your largest, highest-risk trading partners. This sequencing avoids business disruption and gives your team confidence before tackling the hard ones.
Ensure 90 days of online EDI document visibility and 7-year archival as standard. This protects you in audits, chargeback disputes, and any future partner disagreements over whether a document was received.
| Cost Area | Risk Level | How to Control It |
|---|---|---|
| Per-mailbox / per-document VAN fees | High | Switch to per-partner flat pricing with unlimited documents |
| AS2 certificate management labour | Medium | Let your VAN manage AS2 endpoints and cert rollovers |
| Special AS2 connection surcharges | High | Require all-inclusive pricing before signing any contract |
| Compliance chargebacks from missed ASNs | High | Use AS2 for partners who require it; automate MDN monitoring |
Talk to an EDI Sumo specialist about your trading partner network — we'll map the right protocol for every connection.
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