{"id":6216,"date":"2021-07-23T14:10:16","date_gmt":"2021-07-23T12:10:16","guid":{"rendered":"https:\/\/www.retarus.com\/blog\/en\/edi-in-the-automotive-sector-jit-and-lean-production"},"modified":"2024-05-07T11:26:45","modified_gmt":"2024-05-07T09:26:45","slug":"edi-in-the-automotive-sector-jit-and-lean-production","status":"publish","type":"post","link":"https:\/\/www.retarus.com\/blog\/en\/edi-in-the-automotive-sector-jit-and-lean-production\/","title":{"rendered":"EDI in the Automotive Sector: JIT and Lean Production"},"content":{"rendered":"\n

Disruptive forces are currently impacting all areas of the automotive sector.\u00a0While concepts for autonomous driving are now being developed and tested, automobile manufacturers are also broadening their focus on networked vehicles and digital services. To remain competitive, however, they still need to fundamentally ensure that production remains highly optimized. These factors come under the spotlight in Deloitte\u2019s \u201cThe Future of the Automotive Value Chain: 2025 and beyond\u201d<\/a> study.<\/p>\n\n\n\n

In this regard, the seamless collaboration between the OEM (original equipment manufacturer) and its suppliers along the supply chain plays a crucial role in ensuring efficient and lean production on the assembly line. To facilitate just-in-time (JIT) and just-in-sequence (JIS) processes, a large number of individual components need to be fitted correctly and punctually throughout the production chain. Crucially, these parts all need to be delivered on time and to the right location. The conventional warehousing of components must be avoided as far as possible to eliminate additional costs, capital lockup and storage risks. These highly optimized production processes (commonly known as lean production) tend to be extremely complex and in the automotive sector they are facilitated, or even made possible, through EDI integration. EDI is a high-performance, robust method of exchanging data, which has been tried and tested over many decades. It has become indispensable in the automotive business, where suppliers offering a professional EDI connection enjoy huge benefits.<\/p>\n\n\n\n

The automotive sector exploits the substantial advantages offered by EDI integration on a large scale. There are also a wide range of other options for the automated interchange of documents and records, such as the utilization of standards between tier 1 and tier 2 suppliers, or the implementation of message types which enable the extensive automation of packaging management.<\/p>\n\n\n\n

EDI-based processes in the automotive sector<\/h2>\n\n\n\n

EDI integration enables the standardized interchange of digital documents, e.g., shipping notifications, within processes all along the supply chain. In addition, it also facilitates the sharing of data which is essential for the logistics processes. To facilitate this communication, various EDI standards have been established especially for the automotive sector. Most commonly employed for exchanging data in the automotive sector are:<\/p>\n\n\n\n