Automotive EDI Mastery

Understanding EDI in the Automotive Industry

Electronic Data Interchange (EDI) is the backbone of supply chain communication in the automotive industry. EDI enables Tier 1 and Tier 2 suppliers to communicate with Original Equipment Manufacturers (OEMs) and logistics providers efficiently.

Most major automotive brands **mandate** EDI compliance for their suppliers, ensuring seamless document exchanges such as Purchase Orders, ASNs, and Invoices.

Common EDI Transaction Types in Automotive

• EDI 850 - Purchase Order (PO): Sent by OEMs or Tier 1 suppliers to request goods.
• EDI 855 - Purchase Order Acknowledgment: Confirms acceptance or rejection of a PO.
• EDI 856 - Advance Ship Notice (ASN): Critical for just-in-time (JIT) manufacturing.
• EDI 810 - Invoice: Used for billing and payment tracking.
• EDI 820 - Payment Order/Remittance Advice: Confirms payment details.
• EDI 830 - Planning Schedule: Forecasts future demand.
• EDI 862 - Shipping Schedule: Provides daily shipment instructions.
• EDI 997 - Functional Acknowledgment: Confirms receipt of any EDI document.

Common EDI Errors and How to Fix Them

• Missing or Invalid ASN (EDI 856): Can lead to supplier chargebacks. Ensure ASN is sent before shipment arrives.
• Invoice (EDI 810) Rejections: Often due to mismatched PO numbers or missing terms.
• Duplicate Transactions: Check your VAN logs to confirm a document wasn't already processed.
• 997 Functional Acknowledgment Errors: Indicates a formatting issue. Validate against the OEM’s EDI specifications.

VANs and Connectivity: How Automotive EDI is Transmitted

• Major VAN Providers: IBM Sterling, OpenText, SPS Commerce.
• AS2 Communication: Required by many OEMs, including Ford and GM.
• Direct EDI via APIs: Increasingly used by modern automotive OEMs.

OEM & Tier 1 Supplier EDI Requirements

Each major automotive manufacturer has specific EDI compliance mandates that suppliers must meet to avoid chargebacks and disruptions. Below is a breakdown of the most critical requirements per OEM.

Ford Motor Company

• Connectivity: AS2 required for direct connections; VANs accepted for legacy integrations.
• EDI Sent by Ford: 830 (Planning Schedule), 850 (Purchase Order), 856 (ASN), 810 (Invoice), 997 (Acknowledgment).
• EDI Expected from Suppliers: 856 (ASN – must match shipment exactly), 810 (Invoice – must match PO & ASN), 997 (FA for all inbound docs).
• ASN Compliance: ASN must be transmitted before shipment arrival. Ford has **strict** validation on quantity, serial numbers, and packaging labels.
• Labeling Requirements: Ford mandates compliance with **Odette and AIAG label standards.** Incorrect labels = chargebacks.

General Motors (GM)

• Connectivity: Uses GENTRAN for internal processing. AS2 required for new suppliers, VANs allowed for legacy partners.
• EDI Sent by GM: 830 (Forecast), 850 (PO), 862 (Shipping Schedule), 856 (ASN), 810 (Invoice), 997 (Acknowledgment).
• EDI Expected from Suppliers: 856 (ASN – ASN must be 100% accurate), 810 (Invoice), 997 (FA must be sent for all transactions).
• ASN Compliance: Late or incorrect ASNs lead to **penalties and delivery disruptions.** Serial numbers and container ID validation required.
• Invoice Matching: PO, Invoice, and ASN must match exactly, including currency, taxes, and part numbers.

Toyota

• Connectivity: Uses AS2 for EDI, VANs only for Tier 1 suppliers.
• EDI Sent by Toyota: 830 (Forecast), 850 (PO), 862 (Daily Shipping Schedule), 856 (ASN), 810 (Invoice), 997 (FA).
• EDI Expected from Suppliers: 856 (ASN with detailed packing info), 810 (Invoice), 997 (FA).
• Just-In-Time (JIT) Model: Toyota **relies heavily on 830 & 862 transactions** for precise production schedules.
• ASN Validation: Packaging, serial numbers, and **dock codes** must be included in the ASN.
• Labeling Requirements: Must follow **Toyota Odette/AIAG standards** for barcode labeling.

Honda

• Connectivity: AS2 required; VAN only allowed for older suppliers.
• EDI Sent by Honda: 830 (Forecast), 850 (PO), 862 (Shipping Instructions), 856 (ASN), 810 (Invoice), 997 (FA).
• EDI Expected from Suppliers: 856 (ASN must match invoice exactly), 810 (Invoice), 997 (FA).
• ASN Compliance: Honda has **zero-tolerance for ASN errors.** Mismatches with invoices = **auto rejection.**
• Labeling & Barcode Standards: Honda requires **Honda-approved label formats** with serialized barcodes.

Stellantis (Chrysler, Dodge, Jeep, RAM, Fiat)

• Connectivity: Uses IBM Sterling for AS2 connections; VAN support available.
• EDI Sent by Stellantis: 830 (Forecast), 850 (PO), 862 (Shipping Schedule), 856 (ASN), 810 (Invoice), 997 (FA).
• EDI Expected from Suppliers: 856 (ASN – time-sensitive validation), 810 (Invoice), 997 (FA).
• ASN Timing: ASNs must be **transmitted within minutes of shipment pickup.** Delays = **chargebacks.**
• Labeling Requirements: Stellantis follows **AIAG labeling standards with Stellantis-specific barcode rules.**

Volkswagen

• Connectivity: Requires **OFTP2** for European suppliers; AS2 for North American suppliers.
• EDI Sent by Volkswagen: 830 (Forecast), 850 (PO), 862 (Shipping Instructions), 856 (ASN), 810 (Invoice), 997 (FA).
• EDI Expected from Suppliers: 856 (ASN must match invoice), 810 (Invoice), 997 (FA).
• ASN Accuracy: Volkswagen **rejects late or incorrect ASNs automatically.**
• Labeling Standards: **Volkswagen uses VDA labeling standards** for European facilities.

Get Expert Help with Automotive EDI

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