EDI in Automotive Industry

Automotive

Efficient automobile market As far as the automotive industry is concerned, EDI is the Global Standard. Car manufacturers in major world cities such as Brazil, China, and Eastern Europe are enjoying uninterrupted growth in the industry. The more the movement to globalization gains momentum in the automobile market, the more significant changes observed. These changes tend to earn more grounds on a daily basis, and with time, they will set the standards for all activities taking place in the automobile industry. The utilization of EDI tools which are user-friendly has dramatically enhanced the level of communication between Car Manufacturers and smaller suppliers. It does not just bridge the gap by linking these significant players but also removes the barrier placed by language which may hurt the flow of the documents. The speed at which EDI documents are processed and transmitted has been shown to add value to manufacturers and suppliers; faster response rate from suppliers even at short notice and access to real-time information which reduces the purchase lead-times. The integration of Third-Party Automotive EDI providers combined with suppliers for faster OEM’s. These in House OEM’s assists the automotive industry through the accumulation of massive integration costs which may require specialized IT staff. These OEM’s operating around the world come with different standards within a given regional communication network. Although some OEM’s utilize the same sets of EDI transactions, the mapping of their EDI will also require a unique configuration. Whether you are Chrysler, fiat, food or GM supplier, you will need four different EDI configurations which are; Classic ODETTE or the ODETTE subset of EDIFACT which are standard in Europe.
Subsets of the EDIFACT standard used by General Motors.
VDA standards used by German OEM’s.
OEM's in North America including Asian Transplant utilizes ANSI ASC X12.
The relevance of EDI to OEM's cannot be emphasized enough. Some of the suppliers of automotive tend to demand parts which are shipped in the same order with their production lines are bubbling vehicles. Some of the critical points of consideration as far as shipping of automobile parts are concerned includes; delivery times and part quantity. These are very critical for production. Today, most suppliers are on just-in-time (JIT). JTI and Lean Manufacturing merge logistics, inventory, and manufacturing solutions in new ways. As important as this may seem, it should, however, be noted that being abreast with the JTI supply chains can be very overwhelming.