EDI Procurement Process

EDI Procurement Process And Communication Channel Basics for the Daimler AG Trading Partners

EDI procurement process at Daimler AG is based on using EDI technology since 1983 as a reliable channel of communication for doing business. Particularly in view of advances in logistics, Daimler AG plants and their suppliers will be working more closely together than in the past. This will mean increased EDI procurement process synchronisation, which would not be feasible without the use of electronic communication channels. The main aims of EDI communication are as follows:

  • fast and secure data interchange
  • paper-free data interchange
  • elimination of repeated data entry by the recipient (time and cost)
  • reduction of errors caused by having to re-input the data
  • standard interfaces for processing regularly recurring bulk data communications
  • no printing on expensive multiple-copy forms

However, EDI is more than just another channel of communication. By enabling fast, standardised data interchange, it creates the basis for enhancements to other related processes, thereby generating potential savings. Examples of these enhancement opportunities include:

  • Reductions in administration expenses through:
    • standardisation of work processes, and therefore simplification of processes both across multiple workplaces and within individual workplaces
    • immediate availability of data for further processing with user programs
  • Faster flow of information, resulting in
    • immediate reaction to changed requirements
    • faster flow of goods
    • fewer one-off operations, such as special transport consignments
    • more accurate planning
    • greater flexibility
    • less capital tied up in inventories

These enhancements are available to all parties involved in the communication process. The prerequisite is the successful integration of EDI into internal systems and processes. Daimler expects all our partners, including component suppliers, area contract freight forwarders and external service providers, to make effective use of these state-of-the-art communication technologies and resources, becoming more competitive in the process.

The purchasing partner selection decisions will be based not only on optimum quality of the actual service, e.g. material or transport, but also implicitly on the provider’s readiness to display flexibility and innovation, and therefore the ability to use state-of-the-art communication systems. This attitude is also shared by other automotive producers and in other sectors, so showing some initiative in this area is very much in your own best interests as well. Accordingly, these requirements are not seen as an appropriate area for any investment contribution on Daimler part. As far as transmission fees are concerned, Daimler AG has always followed the principle of “sender pays”. To enable its partners to remain competitive and to protect their investment, Daimler AG undertakes to comply with established message standards.

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