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Electronic data interchange (EDI) between suppliers and OEMs poses numerous challenges. Differing OEM requirements often lead to discrepancies and additional work for suppliers. In our article, we shed light on five key topics and highlight the pitfalls to be aware of.
Electronic data interchange (EDI) between suppliers and OEMs (Original Equipment Manufacturers) plays a central role in the automotive industry. Automotive manufacturers often have specific requirements regarding how communication and delivery must take place. Despite efforts by associations such as the VDA the requirements are usually not standardized and vary greatly between OEMs. Suppliers are faced with the challenge of integrating the different EDI requirements into their processes.
1. progress figures - the additional manual effort
Cumulative quantities help suppliers to synchronize incoming call-offs and outgoing deliveries. They list which goods and materials have already been called off, delivered and arrived. However, a frequent problem arises when the deliveries and the subsequently updated call-offs overlap in time. In the case of longer transportation routes, it can happen that the deliveries have long been on their way while the call-off data in the system has not yet been updated. This leads to inconsistencies, as the system continues to display unclarified delivery quantities even though the delivery is actually already on its way. In such cases, suppliers often have to manually check which quantities are still outstanding, which leads to sources of error and additional work.
2. time zone conversion - if dates do not match
Another obstacle is time zone conversion, especially when suppliers and OEMs are located in different time zones. OEMs from the USA work with different times than German suppliers, which can lead to confusion in delivery times. If EDI messages are not synchronized correctly, errors occur that can lead to late deliveries or misinterpreted call-offs. This is particularly problematic when OEMs have specific requirements regarding timing, which are complicated by the time difference.
3. division-related additional data - lack of system support
Some OEMs provide their delivery call-offs with additional information, such as the "Release Authorization Number" (RAN), to ensure traceability. This additional data must be stored in the supplier's system and transferred to the delivery labels or shipping notification. However, many ERP systems are not designed to process such additional schedule line-related data. Without the appropriate system support, this information must be stored manually, which can lead to errors during delivery if the data cannot be retrieved correctly.
4. enrichment of the ASN - complex specifications of the OEMs
The electronic Advance Shipping Notice (ASN) is an integral part of the data exchange between suppliers and OEMs. However, OEMs often have specific requirements for the information that must be included in an ASN. Additional information, such as the aforementioned RAN, often needs to be included. Many IT systems are not able to integrate such data into the ASN, which means that deliveries are not accepted or have to be corrected at great expense. The costs for such corrections can be considerable for suppliers.
5. license plates - the challenge of correct identification
Another central problem in data exchange with OEMs concerns the correct labeling of load units using so-called "license plates". These serial numbers are used for the precise identification of small load carriers (SLCs) and pallets. OEMs often specify how these identification numbers must be structured. However, ERP systems often do not support these requirements, meaning that suppliers have to generate and link the identification numbers manually. An error in the numbering can result in the load units not being correctly identified and therefore not being accepted.
OEM delivery with an SAP system?
Conclusion
Electronic data interchange with OEMs poses numerous challenges for suppliers. OEMs' individual requirements for EDI data and processes are often complex and not standardized, which leads to errors and increased effort during implementation. Suppliers have to deal intensively with the requirements of the respective OEMs in order to avoid errors and ensure smooth data exchange. Software solutions that are specifically tailored to the needs of the automotive industry can provide a remedy here and help to increase efficiency in the supply chain.