Why EDI solutions are key in the automotive supply chain
The effectiveness of supply chain communication in the automotive sector is key to guaranteeing that production systems function. Working with EDI allows for the traceability of commercial operations and for the supply chain to be optimized. EDI has become an essential system to achieve Just in time, which governs the sector.
Precisely knowing the needs of the sector is what has allowed EDICOM to design the most appropriate solutions for manufacturers and suppliers and it also ensures transparent communication and seamless connectivity with any interlocutor. EDICOM has earned this position mainly because of its capacity to provide concrete answers in global contexts to the needs of the sector but also to legislative and technical particularities of each country in which its clients operate. Furthermore, in addition to offering quality, it also offers the security necessary to comply with the specific requirements in particular areas.
Car manufacturers require that suppliers meet the demanding requirements of Just in Time and guarantee the arrival of requested components. Likewise, TIER 1, which supplies critical components to OEMs (Original Equipment Manufacturers) is subject to high levels of demand from manufacturers, which is the timely delivery of components.
Main needs in automotive logistics
- Synchronization between manufacturers and suppliers.The automotive sector requires an effective supply chain in which the manufacturers and supplier are perfectly synchronized. This need has led to establishing electronic data exchange solutions as communication systems through which standardized messages are processed to ensure the smooth exchange of any commercial document between interlocutors regardless of nationality and sector.
- Effective communication. The high volume of messages that are exchanged and processed between manufacturers and suppliers (TIER 1, TIER 2…) requires an automation system that facilitates management. By integrating EDI solutions into the ship owners’ and suppliers’ ERP systems, automation and the elimination of errors are achieved.
- Secure connectivity. Another fundamental factor to guarantee the success of communication is connectivity. Working with value-added networks, and VANs is the safest option compared to point-to-point private networks, public telephony networks or the Internet.
What can EDICOM offer manufacturers and automotive suppliers?
- EDICOM offers multi-standard and multiprotocol solutions. The automotive sector works with its own structured formats in defined standards (EDIFACT, X12, XML, UBL…) and communication protocols like OFTP2 for example. The use of worldwide standards facilitates the exchange of information and streamlines production processes in companies. EDICOM provides a solution capable of exchanging commercial information between partners at a global level while respecting the characteristics of each region.
- The EDI solutions are integrated into the manufacturers and suppliers’ internal management systems or ERP systems. The multi-format data structures are translated into the ERP’s proprietary language. Messages are generated, sent, recorded and stored automatically. Orders, dispatch notices or electronic invoices are processed without human intervention, which reduces errors and streamlines processes.
- The information is shared in real time, which allows adjustments to be made to the supply chain according to needs, stock inventory and notifications for the receipt of goods, etc.
- This same immediacy allows unforeseen situations to be redirected thanks to the constant exchange of information such as ASN messages. In the case of the automotive sector, the function would be to verify that the merchandise sent by the supplier coincides with the purchase order made by the owner. The main advantage of the ASN message for manufacturers is that they can easily check if the merchandise they are going to receive matches their purchase order. With EDI, both documents can be traced and in the event of any disagreement the client receives a warning.
- EDICOM offers secure connectivity through its VAN EDICOMNet. It’s an integral service for the transmission of critical data in B2B environments. Its main advantages are that it is a network that allows for AS2 and OFTP connections and it guarantees global interoperability thanks to interconnection agreements with main international VANs.
EDICOM’s added value
In the automotive sector, globalization is intrinsic due to export volume of vehicles. Mexico is the fourth largest vehicle exporter and some of the companies at different levels that fuel the supply chain are at different levels and located outside of the country.
EDICOM has global capacity. It is an international reference in EDI solutions. It is prepared to serve in more than 70 countries and more than 15,000 clients trust EDICOM with their EDI projects. Thanks to its global capacity, the company is able to walk clients through the internationalization process and offer them EDI, global e-invoicing and compliance services.
EDICOM’s solutions guarantee secure connectivity between suppliers and their manufacturers. At the same time EDI solutions allow suppliers to gain efficiency and meet the high demands of car manufacturers.