EDI In Automotive Industry: The Automotive Industry Action Group EDI Implementation
EDI In Automotive Industry appeared in the late 1960s, when companies began developing in-house computer systems and internal networks to streamline business functions. OEMs and suppliers developed proprietary systems in the 1970s, but these required suppliers to maintain different electronic data interchange (EDI) rules and data formats with each customer, a very costly and time-consuming endeavor. The industry needed a standard set of formats and protocols for effective and efficient electronic commerce.
After thorough technical reviews of all options, The Automotive Industry Action Group (AIAG) elected to adopt the American National Standards Institutes ASC X12 protocol with its variable length format. AIAG then worked with its sister organizations in Europe (Odette International) and Japan (JAMA, JAPIA) to harmonize this standard globally. AIAG subsequently published the industry’s first global EDI Implementation Guideline.
AIAG’s work in EDI created shorter lead times, more inventory turns, reduced cost of data entry, fewer data entry errors, better scheduling, faster release processing, and increased productivity. Since 1982, AIAG helped companies correctly implement EDI through its implementation guideline and training. As a result of consistently deployed EDI, an AIAG member company study estimated a savings of $71 per vehicle and overall industry savings of about $1 billion per year.
AIAG) is a unique not-for-profit organization where OEMs, suppliers, service providers, government entities, and individuals in academia have worked collaboratively for more than 37 years to drive down costs and complexity from the automotive supply chain. AIAG membership includes leading global manufacturers, parts suppliers, and service providers.