EDI in the automotive industry

JIT, JIS and Lean Production – there is hardly any other industry where smooth processes are as relevant as in the automotive industry. Emerging trends such as e-mobility and digitalization add another layer of complexity to the supply chain. The solution for all these challenges lies in a common language: EDI!

Given high customer demands regarding quality and high time pressure, the automotive industry is one of the most challenging industries for automated procurement of goods processes. After all, for Just-in-Time (JIT) and Just-in-Sequence (JIS) production, many different components need to be assembled along the production chain, and they all need to be at the right place at the right time.

Future e-mobility, connected driving, and digital services also have an impact on production processes. Just take the fact that the introduction cycle for new products is shorter than ever, products are increasingly complex, and variability is growing. In addition, the percentage of electronics and software in cars increases the risk for callbacks.

Mastering the challenges of today and tomorrow

The key for mastering all these special challenges in the automotive industry lies first and foremost in smooth coordination between OEMs and suppliers along the entire supply chain. This is the only way of ensuring lean and efficient production line processes.

Electronic Data Interchange (EDI) is a great ally to make this happen. This high-performance and robust technology has been successfully used in the automotive industry for decades. After all, EDI is the most efficient and quickest way for business partners to exchange documents, independently of where they are located.

EDI is not only the answer to PRESENT-DAY challenges in the automotive industry such as:

• High quality demands and time pressure
• Fastest possible update of delivery forecasts
• Processing and meeting clients’ delivery specifications
• Indicating the correct IDs for articles, packaging, delivery locations, etc.
• Specifications for generating of logistics labels (for example GTL – Global Transport Label)
• Complying with legal and tax-law requirements

…but it is also the answer to FUTURE challenges:

• Ever shorter product cycles
• Unexpected delivery and merchandise bottlenecks
• Impact of innovations such as KI, Cloud, Big Data, and IoT
• E-mobility – incorporating new generations of vehicles into existing production structures
• Emergence of new and complex digital ecosystems (e.g., when established suppliers work with new ones)

Solutions for all requirements

Several options for EDI communication exist, depending on the given situation and requirements. EDI integration, for example, is a solution for sending and receiving documents directly via a company’s own ERP system thanks to a direct connection with the business partners’ systems. Web EDI is a great choice for small partners who do not have their own ERP system. It allows them to exchange EDI messages via the web-based interface of an EDI platform.