Auto Expo 2014: SIAM and ACMA roll out standardised EDI platform for auto industry

Apex industry bodies SIAM and ACMA have set up an auto data exchange called AutoDX, which is an electronic data interchange (EDI) platform for integrating OEMs and suppliers on a common data exchange standard. 

Leveraging the IBM Sterling B2B Collaboration network solution, AutoDX adapts UN’s EDIFACT-based standards for standardisation of information exchange. While KPMG has helped set up the standards, IBM is the technology partner for the initiative.

To be formally launched during Auto Expo 2014, AutoDX will facilitate standardisation of transaction data definitions, automate data exchange amongst players, obviate manual data entries and provide data interchange capability across the automotive industry to enable a streamlined supply chain.

After undergoing a pilot project with 10 companies and development over the last three years, the OEMs and suppliers to use it first will be Hero MotoCorp, Tata Motors, Bajaj Auto, Mahindra & Mahindra, Brakes India, Rane Group, TVS Motor, Sundaram Fasteners, Bosch, UNO Minda and SSS Springs. It is expected that by the end of the year most of the automotive players will be on board.

SIAM president Vikram Kirloskar said: “Today, most auto OEMs as well as suppliers have mature IT platforms and techology enabled transactional processes. Most of these IT interventions have been internally focused to improve the efficiencies of the respective organisations. However, these IT interventions have resulted in customised, company-specific documents and data formats resulting in significant additional efforts by the industry in integrating with each other.”

Usually each OEM has a dedicated portal for publishing delivery schedules, uploading data entry of supplier transactions and publishing of financial settlement data to suppliers. Suppliers need to customise their systems to each OEMs portal for uploading and downloading transaction data from these portals. This hinders agile, real time data integration between industry players. At times, this complexity results in delays in shipments and dilutes OEMs JIT/JIS initiatives. Further, people-based processes for uploading and downloading data onto the portals lead to errors, resulting in loss of productivity.

ACMA president Harish Lakshman added: “The respective IT committees of SIAM and ACMA realised the need to come together for reducing the complexity and have been working on an action plan since 2010 which has now resulted in setting up of the EDI platform – AutoDX. The solution has undergone successful pilot testing by 10 companies and is now ready for a progressive rollout. This common cloud-based platform can enable seamless information exchange not just between OEMs and its Tier 1 suppliers but also with the upstream value chain, logistics partners, financial institutions and others who serve the auto industry. Our broader vision is to facilitate adoption of standards wherever structured information is exchanged be it in the form of electronic or paper document or labels such as barcode and RFID.”

While improving efficiencies, the AutoDX will lead to reduced transaction costs. The initiative makes digital collaboration amongst supply chain partners in the Indian automotive industry comparable to any industry globally, concluded Vijay Sethi, chairman, SIAM IT committee.