EDI

EDI or Electronic Data Interchange is very much a part of Global Information Systems. Many large-scale manufacturers are interconnected with suppliers and customers through EDI interfaces. Many traditional EDI transactions occurred over bisynchronous modems however with the explosion of the Internet these transactions now occur over the public Internet and private IP-VANs. Below is a list of useful EDI related web sites, which provide some excellent details into the EDI subject.

EDI standards organizations:

AIAG

The automotive industry has adopted EDI as a standard means of communicating inventory requirements and delivery status. AIAG stands for the Automotive Industry Action Group. One item of interest within this organization is EDI and supply chain management. This is an excellent URL to reference when researching EDI. Anyone researching and planning an EDI implementation should start with this web site.

http://www.aiag.org/

DISA

Data Interchange Standards Association

Because of language and cultural disparity in the world it is essential to establish data standards that came overcome such barriers. DISA is very much an international organization focused on establishing standards.

http://www.disa.org/

XML

XML.ORG (xml.org) is an industry web portal operated by OASIS, the Organization for the Advancement of Structured Information Standards. Funded by a group of companies committed to establishing an open, distributed system for enabling the use of XML in electronic commerce and other industrial applications. XML.ORG is designed to provide a credible source of accurate, timely information about the application of XML in industrial and commercial settings. They serve as a reference repository for XML specifications such as vocabularies, DTDs, schemas, and namespaces. XML is certainly a hot topic in the many fields and not just Global Information Technology, however Globally implemented systems will not be devoid of XML.

http://www.xml.org/

Practical Implementation of EDI in the Real World

Economies of scale have driven the US Big Three Automakers to become World Automakers. Both Ford and GM have been busy merging with European and Pacific-rim based companies and Daimler now owns Chryslers. These three large world economic forces have been largely responsible for establishing EDI as a Global Supply chain management tool. EDI is essential in a JIT (just in time) manufacturing environment. JIT allows manufacturers to efficiently streamline available inventory without affecting the production cycle times. The sequential coordination between supplier and customer is a primary driver for implementing EDI. Tier one suppliers that ignored EDI ten years ago no longer supply the big three. Below are EDI web sites with specific EDI requirements such as standard transaction sets.

Daimler Chrysler

Daimler Chrysler now uses the term “Extended Enterprise” to describe their supplier relationship. This site describes what Chrysler is doing with EDI.

http://supplier.chrysler.com/cgi-bin/english/index.cgi?stage=expand&akey=general

Ford Motor Company

Ford is implementing a Global E-commerce EDI hub to handle supple chain management. This site describes this new process as well as other non-EDI related activities. Ford has taken the lead in collaborative engineering with its branded C3P implementation. Not only does Ford require tight manufacturing and inventory control links Ford realizes big paybacks in the collaborative design arena.

https://web.suppcomm.ford.com/us/gsecushome.html

General Motors

GM initiated EDI in the early 1990’s. GM may have actually ushered in what we now call Business to Business e-commerce when they introduced EDI. This page is full of GM specific requirements as well as a newer standard known as the X12 transaction set.

http://www.gmsupplypower.com/apps/gsnhome/web0218/home/public_access/communications.htm

All three Automakers are working towards an Automotive based computer network know as ANX. ANX is essentially a Private IP Value Added Network. In time all automotive suppliers and manufacturers will use this common private backbone to exchange EDI and engineering related information. As ANX is successfully implemented in the automotive marketplace it will serve as a business model for other businesses. GM and EDS were two main ANX drivers. This is how GM describes ANX:

Automotive Network eXchange (ANX)

The Automotive Network eXchange (ANX) is a secure electronic communications network for use within the automotive industry. It provides fast, reliable, and secure data transfer among automotive suppliers and manufacturers.

The goal in creating ANX was to replace diverse, inefficient data-communications with a single, standard method for communicating among manufacturers and suppliers.

With the high speed and reliability of this network, suppliers and manufacturers (referred to as "Trading Partners" or TPs) are able to exchange business data, such as Computer Aided Design (CAD) drawings, purchasing documents, and sensitive financial information much more efficiently than before. As an example, large CAD drawings may now be transferred between suppliers and manufacturers in minutes instead of days.

As a result of such improvements, ANX will boost efficiency, cut costs, and reduce time-to-market throughout the industry.

How did the ANX network come to be?

The ANX network was created under the sponsorship of the Automotive Industry Action Group (AIAG) — an industry trade organization comprised of automotive manufacturers and suppliers.

In 1995, AIAG member companies endorsed the Internet protocol, TCP/IP, as the standard method for its members to communicate electronically. Many members’ subsequently developed internal networks using the TCP/IP standard; however, incompatibility problems among suppliers persist. The ANX network eliminates this disparity by providing a common, industry-wide method for transferring information.

In 1996, the AIAG validated the ANX concept in the Manufacturing Assembly Pilot (MAP) project. This project concluded that performance improvements made possible with an ANX type network would result in savings of $71 per vehicle.

From there, the actual components of the ANX network were validated, first in the ANX Pilot, and later in pre-production testing. These efforts further proved the value of ANX, and in September 1998, the AIAG announced the production launch of ANX Release 1.

OEM Endorsement

Original Equipment Manufacturers (OEMs) presented their plans for using the ANX network at the September 1998 Autotech trade show. In addition, they have issued letters to their Trading Partners encouraging the use of the ANX network.

What are the components of the ANX network?

The ANX network resembles the public Internet, with some key differences:

The ANX network currently serves trading partners in the automotive and related industries. Trading Partners are defined as any entity that participates in business-to-business commerce with the industry. This extends from original equipment manufacturers (OEMs) such as GM, Ford, or Daimler-Chrysler, to their part and service suppliers.

The information transferred across the network is guaranteed secure. Firewall and "IPSec" (IP Security) devices prevent data corruption.

The performance and reliability of the network are monitored and maintained by a central ANX overseer (or ANXO). The AIAG has currently contracted with Telcordia Technologies (formerly called Bellcore) to fill the role of ANXO.

Suppliers Of EDI Based Software

Harbinger is one of the largest EDI software suppliers. EDI runs on virtually any platform including UNIX and NT. In many instances it is essential to link the EDI system to the supplier ERP or MRP system. http://www.harbinger.net/