EDI and High Performance Logistics
EDI & High-Performance Logistics in abas ERP
Highly competitive industries, such as the automotive and retail industries, rely upon highly efficient processes to stay competitive in global markets. In addition to standardized electronic communication (EDI), abas also offers special functions for all companies with high-performance logistics.
EDI – one language for all
Paperless data exchange is a must in many industries. abas ERP incorporates the internationally established Electronic Data Interchange (EDI) standard, which connects manufacturers, customers and suppliers and enables full control of the flow of goods, data and money within the partner network. Automation through standardized formats such as VDA, ODETTE, EDIFACT or ANSI X12 significantly speeds up business processes such as purchase orders, deliveries, invoicing and payment runs.
We understand automotive
Automotive suppliers in particular are facing increasing pricing pressure. Increasingly short innovation cycles, increasing model diversity and integration in a wide range of MRP and logistics processes at the different manufacturers mean that mid-sized companies – and their ERP systems – are facing major challenges. In addition to the required adherence to delivery dates, other aspects such as quality, cost control, flexibility and data visibility are becoming more important.
abas supports your company in the management of complex supply chains and coordinates all logistics processes between the supplier/subcontractor and automotive manufacturer. All relevant and typical processes – in particular industry-specific requirements such as blanket order management, delivery and JIT delivery schedules, cumulative quantity management, management of loading equipment and returnable packaging, and batch and serial number management – are mapped to be as lean, dynamic and efficient as possible. An early warning system proactively warns your planners of changes and, thanks to complete visibility in the call, delivery and production environment, you can minimize contractual penalties and extra trips. Intelligent BI dashboards are the basis for fast, sustainable decisions and round off the abas offering for the automotive industry.
The EDI center provides an overview of all EDI processes. A monitoring tool ensures greater visibility while a visualization of the incoming and outgoing EDI messages helps you identify and resolve errors.
Competitive edge – EDI
Standardized EDI processes are fully integrated. This represents a significant competitive advantage for you as the online integration of EDI processes in accordance with VDA, Odette, EDIFACT, or ANSI X12 automates processes, minimizes manual effort, and eliminates sources of errors.
Efficient solution for automotive and automotive supply
abas helps your business manage complex supply chain processes and coordinates all agreed logistical processes between vendors/subcontractors and manufacturers. Industry-typical requirements of the automotive and automotive supply industry are met by lean and efficient solutions.
Optimize logistics processes
Shipping planning in abas ERP harmonizes logistics and transportation. It helps you shorten storage periods and therefore reduce costs. Efficient shipping is also beneficial for your customers, as it enables faster delivery.
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A reliable flow of information is paramount to business relationships. abas ERP’s electronic data interchange (EDI) allows the manufacturers, customers, vendors and business partners to easily manage the flow of goods, information and money. EDI will save time and reduce errors by allowing information to be shared more fluently.
Why automotive suppliers are dependent upon high-performance logistics
The automotive industry has always taken a pioneering role with regard to standardization, automation and transparency. What began over 100 years ago with Henry Ford's revolutionary assembly lines, continues today in closely networked supply and production chains. The requirements of the suppliers' internal logistics are equally high. Continuous improvement within the entire supply chain is an unconditional requirement – the entire organization, its processes and the system landscape must be one hundred percent up to date and, above all, customer oriented.
Standard ERP solutions for the production industry are far from adequate. The ERP software used must not only ensure smooth, electronic data exchange between different sites and production systems via EDI, but must also map and be able to implement manufacturer-specific logistics processes, such as the Audi “string of pearls” or VW “NLK.”
To guarantee high punctuality and maximum throughput speed in production despite the constantly increasing number of models and variants, the order sequence for each assembly line in the automotive industry is defined several days in advance. The order sequence is transferred to the suppliers and forms the basis for a stable, logistical supply with small warehouses.
This “just-in-sequence” concept presents automotive suppliers with the challenge of having to supply very reliably and at very short notice – in the Audi string of pearls, for example, within the “Frozen Zone” of 6 days. The smooth flow of materials is vital. The string of pearls could break if one single delayed truck causes a container to be delivered to the production belt too late. The consequence would be expensive extra trips or high contractual penalties. There is a need to react flexibly to events such as machine downtimes or missing materials, and to harmonize the required punctuality with contrasting objectives such as minimal capital commitment in the warehouse.
The support of specialist and highly efficient IT solutions is crucial here. Many business divisions and internal and external interfaces are closely networked and synchronized with each other, from sales to production planning and production data acquisition to warehouse management. Imminent bottlenecks or jams can only be detected on time if it is always possible to tell which processing status which material is in.
To ensure the fast, correct and reliable exchange of vast quantities of data between various IT systems, the automotive industry uses the internationally recognized EDI (Electronic Data Interchange) messaging standard and also obligates its suppliers to participate in the electronic and automatic transfer of data. EDI capability is now a decision-making criterion for almost all large automotive manufacturers when selecting suppliers.
An industry-specific and sustainable ERP system is therefore a key contributor towards strengthening the competitiveness of automotive suppliers while simultaneously increasing their profitability.