The automotive industry has been one of the pioneer sectors in the implementation of EDI solutions. This technology has been used for about forty years to meet the requirements of this globalized industry. Indeed, automotive production lines are spread all over the world. This sector is based in particular on production processes in just-in-time, or even so-called Lean. To ensure their proper functioning and optimize their performance, car manufacturers and equipment manufacturers had to find solutions. This is where EDI comes in.
Why is EDI used in the automotive sector?
EDI allows companies to exchange commercial documents (orders, invoices, dispatch notices, etc.) in a dematerialized way with much greater speed and efficiency.
The EDI solutions put in place between the Major Contractors (automotive manufacturers) and their suppliers (rank 1 for large equipment manufacturers, rank 2 for small suppliers, etc.), have in particular made it possible to improve relations between different partners and to optimize the entire production process.
For this organization to be effective, it is essential that manufacturers and large equipment manufacturers be able to integrate their entire supply chain. To do so, they must ensure that their suppliers are able to exchange using EDI.
Large manufacturers and suppliers have EDI solutions integrated into their management software. This is why they encourage their suppliers to equip themselves with a Web EDI type solution to exchange together.
Most often, the costs are borne by the supplier himself. It may happen that some large equipment manufacturers take care of equipping their smaller suppliers and bear the subscription costs.
Let's take a quick look at the standardization of EDI exchanges in the automotive industry and then look at the operation and advantages of Web EDI.
EDI standardization in the automotive industry
There are various industry associations whose role is to define the norms and standards for EDI exchanges in the automotive sector. We find:
- GALIA, Group for the Improvement of Computer Connections in the Automobile Sector, for France;
- ODETTE, Organization for Data Exchange by Tele Transmission in Europe, for Europe;
- VDA, Verband Der Automobilindustrie, for Germany;
- ASC, Accredited Standards Committee, for North America.
These organizations have thus defined standards such as EDIFACT or ANSI X12, mainly used in Europe.
To exchange these EDI messages, players in this sector use different communication protocols. The most used are OFTP, Odette File Transfer Protocol, and ENX, European Network Exchange, or the use of VAN, Value Added Network.
Let us now focus on the specifics of Web EDI in the automotive sector.
What is Web EDI?
Web EDI allows you to exchange in EDI with your partners thanks to a simple web portal. You can thus receive your orders in EDI, issue the despatch advice linked to this same order and send your invoice in electronic format.
Unlike an integrated SaaS or licensed EDI solution, with Web EDI no software installation is required. A simple Internet connection is enough!
Thanks to smart forms on the web interface, you can send your EDI messages. The application is responsible for transforming the data you have entered into the standard format expected by your partners and transmitting it to them.
You can also automate the creation of these documents from received EDI messages. For example, you can automate the creation of an invoice from order data.
How does Web EDI work in the automotive industry?
Here's how automotive-specific Web EDI works:
You can thus:
- Exchange EDI messages with your partners
- Translate documents
- View your EDI messages:
|Acknowledgment of receipt
- Receive an email alert each time an order is received
- View, print and download your orders
- Enter your dispatch notices
- Print your labels and delivery slips
- Manage your consignment stocks
- Enter and print your invoices
Web EDI Auto: For which companies?
Web EDI is mainly intended for suppliers whose volume of orders does not require investing in an integrated EDI solution or who do not have a management software.
It is also a solution that can allow suppliers or manufacturers to temporarily increase their EDI capacities. This is sometimes relevant until they are able to integrate new operations into their current system or to process specific documents.
The benefits of Web EDI in the automotive industry
The advantages of Web EDI are numerous. First of all, this solution allows you to meet the requirements of your clients and thus be referenced. In addition, it is a low-cost solution because installation and operating costs are reduced compared to an integrated EDI solution.
You benefit from the advantages of EDI such as the reliability of exchanges and a reduction in the risk of litigation. Your processes are also simplified and you save time to devote yourself fully to your core business.
Not to mention that this solution does not require any particular IT skills. It is accessible to all, which ensures you a quick start.
TX2 CONCEPT and Web EDI Auto
TX2 WEB EDI AUTO allows you to respond quickly and easily to requests from manufacturers and rank 1 suppliers (Stellantis, Renault, Nissan, Ford, VW, Volvo, Faurecia, MGI, Coutier, etc.).
Our solution, certified by GALIA, is available in more than 10 languages. We translate our solution according to the requests of our customers so that they are able to respond to the requests of their French and foreign clients.
Being a software publisher of our own solutions, we are able to adapt to your needs and offer you a specific solution.
For example, by default on our EDI web portal you only have an administrator account which has all the rights. Depending on your needs, we have the ability to create sub-accounts with limited access. We can thus modulate the rights according to the users of the platform.
Also note that it is possible for a supplier to have several buyers and/or carriers on its EDI Auto web portal. This allows you to have a single platform for all your EDI exchanges.
With TX2 WEB EDI AUTO, you are able to automatically generate your despatch notices, while remaining able to modify them manually. You can also automatically generate your invoices based on your shipping notices and your database.
If you would like to know more, do not hesitate to contact us by email or to book a call. We will be happy to advise you and support you in your project.