The automotive sector places greater demands on suppliers than almost any other sector. Individual components need to meet strict criteria for the quality and traceability of materials, and additionally electronic data interchange (EDI) plays a key role. Although EDI doesn’t hold responsibility for manufacturing directly, integration with suppliers and customers is fundamental. If for example ASN (Advance Shipping Notice) messages remain undelivered for any reason, or they contain mistakes, fines (defect charges) from automakers are a real, and threatening, possibility. These affect a supplier’s overall rating, and with it, its future contracts. Invoicing takes place over EDI as well, and so it’s important for everything to work as it should.
The different types of messages
Your EDI has to be able to process the various message types that are exchanged between supplier and customer. Here are the types that you’ll encounter most often:
Messages sent by the customer (the automaker) to its suppliers:
- Call-offs (called LAB, call-off or Forecast) are messages that offer an outlook onto a relatively long period and thus give you the foundation for planning your production and purchasing.
- Detailed call-offs (FAB and DELJIT), meanwhile, additionally contain a required delivery date.
- Orders (ORDERS) are used in automotive only rarely. These serve for ordering specific goods for a specific place and date.
- Self-billing invoices are primarily used by large companies, with the customer issuing an invoice to themselves for the goods from the supplier.
Messages that are sent to the customer (the automaker) by the supplier:
- ORDER RESPONSE (ORDRSP) messages are order confirmations. Just like ORDER messages, they are used in the automotive industry only rarely.
- Delivery notes (ASNs) are lists of products to be supplied. They also contain information on quantities, packaging or transportation type.
- Invoices serve the same purposes in automotive as they do elsewhere.
Different standards
EDI standards are collections of rules under which the data in messages is structured; they determine whether it will be divided up into sections, folders etc.
- UN/EDIFACT - (United Nations Electronic Data Interchange for Administration, Commerce and Transport) This is a significantly widespread standard used across various industrial sectors.
- Odette/VDA - (Organisation for Data Exchange by Tele Transmission in Europe) Odette is EDIFACT’s predecessor within Europe. Odette was one of the first organizations to campaign for complete transmission of data between automakers and their suppliers.
- RosettaNet - This non-profit consortium is made up of over 600 companies coming primarily from the areas of IT, electrical engineering, semiconductors, telecommunications and services.
- ANSI ASC X12 (American National Standards Institute Accredited Standards Committee X12) This standard is primarily widespread within the USA; the first X12 dates all the way back to 1982.
The different communications protocols
A communications protocol is a channel through which messages are transmitted. To succeed as an automotive supplier, you need to use at least one of the protocols see real-world use.
- OFTP/2 is the most widespread in Europe;
- Asia tends more towards AS2;
- 400 (VAN) is the most widespread in America.
Meanwhile web services are looming ever faster towards the forefront. Ideally your EDI should be able to react flexibly to the need for new protocols. This flexibility will enable you to expand your activities towards new customers.