Automotive EDI: do these two words speak to you? But do you know where and when it all started? Do you also know the advantages? Follow the guide, we will explain everything to you in this article.
Automotive EDI: A bit of history
It was in the 1950s that the “just-in-time” revolution began at Toyota in order to foster the development of the Japanese automotive industry, a method that would be used by American and French manufacturers in the following years. It’s a method of organization and management of production that consists of minimizing stocks and items in production. Communication systems are integrated by all players of the supply chain, from car manufacturers to suppliers sometimes located in emerging countries: the entire chain is concerned!
Why EDI in the automotive sector?
The automotive industry is a sector in constant search of speed, cost reduction, quality and finally stocks reduction: this is where EDI comes in! Electronic data interchange (EDI) has become widespread over the years in most industries. In the 1970s, the automotive industry was pioneer in the implementation and operation of EDI. The use of an EDI solution is a very efficient means for the transfer of commercial documents between manufacturers and their supply chains (dispatch advice, details on stock levels, etc.). EDI therefore makes it possible to ensure the proper functioning of exchanges between major contractors and suppliers, the use of EDI flows aimed at optimizing production processes and the integration of the entire supply chain, especially in just-in-time manufacturing processes.
Are there any standards?
To maintain common order, the automotive industry is highly regulated and therefore has its own EDI norms and standards. They are defined in collaboration with the major players in the automotive industry and especially via various sector associations:
- GALIA (group for the improvement of computer links in the automotive sector)
- ODETTE (Organization for Data Exchange by Tele Transmission in Europe)
- VDA (Verband Der Automobilindustrie) in Germany
- ASC (Accredited Standards Committee) with the ANSI X12 norm in North America.
Protocols specific to the automotive sector are used such as OFTP or Odette File Transfer Protocol, which is the protocol most used by major contractors. This standard is updated regularly. However, some manufacturers use FTP protocols, which are also used in other industries. These protocols allow the exchange of flows between trading partners. Regarding the standards of the documents exchanged, it is possible to find EDIFACT or ANSI X12. However, some manufacturers will use the ODETTE standard, while in Germany, for example, the VDA will be preferred.
Why be equipped?
In order to develop their activities, suppliers need to set up an EDI solution, in particular to meet the demand of a majority of contractors, and thus be referenced. Indeed, in a world anchored in globalization, it is vital for car manufacturers to be able to quickly integrate their international suppliers. This is why it is essential for suppliers to be able to exchange in EDI. As an equipment supplier and/or car manufacturer, it is worth adopting an EDI solution to:
- Automate your commercial, logistics and invoicing flows with your equipment supplier and car manufacturer customers in order to:
- Receive your forecast and firm order programs
- Send your dispatch notice
- Communicate with your transport and logistics service providers or your subcontractors
- Send out your movements and stock status
- Send your invoices with tax dematerialization processing
- Homogenize and automate all of your exchanges and your trade, logistics and invoicing flows with your own suppliers.
- Dematerialize all of your incoming and outgoing invoicing flows.
TX2 CONCEPT: historical player in automotive EDI
TX2 CONCEPT, thanks to a team of functional expert consultants in the automotive sector, offers a complete range of EDI solutions adapted to this industry:
- AUTOMOTIVE WEBEDI PORTAL solution, GALIA certified
- EDI solution INTEGRATED to your ERP/CAPM
- WEB SERVICES integrated to your ERP/CAPM
- SYNCHRONOUS FLOWS management solution
- EDTI solution of plans exchange and technical data
- WEB SERVICES AUTO
- WEBEDI SUPPLIERS PORTAL solution
- INVOICES DEMATERIALIZATION platform GS1 France certified
Thus, our “business” experts put themselves at the service of our customers in the implementation of their EDI solutions, on one hand and in the technical support, on the other hand. A dedicated team is also available through various communication channels to answer all questions / requests from our various customers. TX2 CONCEPT’s sales and technical teams make themselves available for any additional information on all of our solutions. So, don’t hesitate to contact them!
