Suppliers to the automotive industry are faced with a unique environment. To stay competitive, an automotive supplier must react to a complicated and ever-changing set of rules developed by the customer. These rules describe the exact methods that move product and order information through the supply chain. Automakers literally reach out and touch their suppliers at a moment’s notice to broadcast these mandates and changes in demand. Encompass EDI Consultants have deep experience with the unique set of Automotive EDI challenges faced by suppliers, including Regulatory, Logistics and ‘Release Accounting’.

Unique Aspects of Automotive EDI

This concept is captured by the term ‘Release Accounting’ and is what sets the automotive industry apart from any other with respect to EDI.

A supplier’s ability to manage the ‘Release Accounting’ process plays a key role in determining whether they are able to respond to customer changes rapidly and profitably. Those who have automated and integrated the ‘Release Accounting’ methods are well positioned for growth in the supplier community. They also report an increase in supplier ratings.

General Manufacturing rarely faces the same challenges.

Automotive EDI ‘Release Accounting’

Automotive EDI uses a radically different Order model compared to General Manufacturing (aka ‘Release Accounting’). The unique set of EDI transaction documents leveraged by this order model as well as associated activities include:

  • Weekly 830/DELFOR Forecasts
  • Daily 862/DELJIT Daily Ship Schedules
  • No, or Infrequent, 850/Orders Discrete PO’s
    • Order Releases managed using ACCUM-Shipped-to-Date totals
    • ACCUMs reset to zero annually
    • Releases frequently stated using ACCUM numbers, instead of Discrete QTYs
    • Responsibility to maintain and reconcile ACCUMs is on the Supplier
  • EDI 856/DESADV Advance Ship Notices (ASNs) are critical to the Supplier’s Monthly Performance Rating
    • Accuracy mistakes cost several points for each instance
    • Timing … typically the ASN must be sent and received within 20-30 minutes after truck departs. If not, that’s also a mistake that costs points
  • Invoicing
    • No EDI or Paper Invoices
    • Instead, Invoicing is done using Pay-On-Receipt or ERS (Evaluated Receipt Settlement)
  • Use of KanBan / Just-In-Time (JIT) Releases
    • Kanban Numbers need to be received, stored and returned on ASNs
    • Kanban Numbers typically mean more frequent changes to individual Releases
  • Releases
    • (similar to General Manufacturing) FIRM, UNFIRM, Planning Types
    • Use of Authorization Limits for FAB, RAW limits
    • This governs reimbursement level for cancellations

The Role of ERP in Addressing Automotive EDI challenges

Electronic Data Interchange (EDI) and electronic commerce play an integral part in ‘Release Accounting’. Yet translating the EDI document into human-readable form is just the beginning. How the data is used, and understanding how these unique requirements should be processed, is the essence of ‘Release Accounting’.

Every ERP System, which purports to accommodate ‘Release Accounting’ either has an internally-developed module (usually separate from the main system modules), or has developed a relationship with a 3rd-Party.

It is this 3rd-Party relationship where Encompass has a deep experience base and can help customers select the optimum methods, configurations, and integration to best align with a supplier’s business needs.

For more information on Encompass’ EDI services and Entrust EDI solution, reach out using the ‘Contact Us‘ button below.

About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.


Dexter Magnetic Technologies offers superior magnetic solutions for products ranging from aerospace radar systems to nuclear magnetic-resonance imaging machines, hearing aids, and pacemakers. The company’s philosophy of continuous improvement and customer satisfaction has earned it a solid reputation as the original architect of magnetic technology.

Founded in 1951 as Permag Corporation, Dexter has grown to be a full-service manufacturer and designer of complex magnetic assemblies for a global customer base, including the U.S. Department of Defense, medical device companies, and others that require exacting documentation and certification of parts and finished products to comply with regulatory requirements such as ITAR.

Challenges

  • Improve on-time delivery by reducing lengthy quality control document searchand-retrieval times and refining manufacturing execution.

Solution

  • Epicor® ERP functions:
    • Finite Scheduling
    • Available-to-Promise
  • Epicor® ECM (DocStar®)
  • Epicor® Data Analytics (EDA)
  • Epicor® Quick Ship

Benefits

  • Achieved company-wide goal of improvements in on-time delivery with an investment of less than $50,000.
  • Reduced time needed to search and retrieve all necessary documentation for packing and shipping from 10,000 employee hours to less than 3,000 annually.
  • Leveraged Epicor ERP functionality for improved business intelligence and more efficient planning and scheduling.

 

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About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.


Imagine what you could do with instant, accurate machine data and process information directly from the machine. Even depth and dimension is within reach with the help of a manufacturing execution system (MES). Medical parts, supply and equipment manufacturers use MES for real-time production monitoring and analysis to improve throughput, boost quality, and reduce scrap. You can achieve more capacity with the same machines and improve overall equipment effectiveness (OEE)—working more efficiently and profitably. This white paper highlights four ways to boost your performance with the right manufacturing execution system.

 

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About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers and Distributors. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.


As an automotive parts or components manufacturer, you may be both encouraged and challenged by a growing number of trends in the automotive marketplace. From disruptive trends in product developments—such as electric vehicles, advanced assistance and safety capabilities, and driverless vehicles—to trade tariff increases, regulation changes, and higher interest rates, it’s apparent that change is in the air.

Production trends show that manufacturing of most motor vehicles is on the rise—at least for SUVs, crossovers, pick-up trucks, and commercial trucks. Conversely, production is down for cars and medium-duty trucks. Ford surprised some when it announced scaling back significantly on its car offerings, continuing production on only two car models in order to focus more attention on its SUVs, crossovers, trucks, and commercial vehicles.

How these trends will shape the future of the automotive industry and the manufacturers that supply them remains to be seen. As an industry insider, you know that multiple factors can add up to affect the automotive industry in complex ways. New trends and the risks, opportunities, and challenges associated with them were examined recently during a presentation hosted by Today’s Motor Vehicles1 and sponsored by Epicor® Software. Read on for an overview of what’s shaping today’s auto vehicle industry.

 

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About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers and Distributors. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.


The Food and Drug Administration’s Code of Federal Regulations Title 21 Part 11 (FDA 21 CFR Part 11) helps streamline compliance with a wide range of FDA regulations by supporting FDA regulated industries in their efforts to submit necessary documentation in an electronic format. In particular, 21 CFR Part 11 provides regulations that enable manufactures to use electronic records and signatures in a manner equivalent to paper-based records and handwritten signatures.

This regulation specifies that in order to use electronic records and signatures, companies must meet four conditions. They must validate the software and systems used to create and maintain electronic records, provide secure access to those records to maintain confidentiality and data integrity, hold individuals accountable for their electronic acts with regard to electronic documents, and ensure that electronic signatures cannot be repudiated. However, the FDA does not specify how companies must address these requirements—rather it provides a set of guidelines based on common sense and good workflow processes.

This whitepaper describes the requirements for FDA 21 CFR Part 11 compliance at a high level and discusses how Epicor enables FDA regulated manufacturers to fulfill these demands. Because Epicor builds the necessary capabilities into its products, implementation is fast, easy and comprehensive.

 

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About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers and Distributors. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.


It’s important for American manufacturers to stay current if they wish to remain successful. Positioning yourself for growth means looking to the future and gaining efficiencies through new technologies. That’s why this question may be the most important one for your business— are you a future-ready manufacturer?

Before you can adequately answer that question, you and the members of your organization need to know the answers to these three questions.

 

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About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers and Distributors. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.


The General Data Protection Regulation (GDPR) is a new legal framework that will take effect on May 25, 2018. The purpose of the GDPR is to protect the privacy rights of individuals, and it will bring into effect strict global privacy requirements that will govern how organizations manage and protect personal data—regardless of where data is sent, stored, or processed.

The GDPR is a major change that affects how data relating to an individual should be handled and may impact every department across many businesses worldwide. It will not only affect companies, but also any individual, authority, agency, corporation, or other entity that processes personal data of individuals based in the European Union. For a company, this may include any suppliers and other third parties that may process personal data.

 

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About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers and Distributors. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.


Companies that must comply with International Traffic in Arms Regulations (ITAR) need to more strictly control access to some or all of their ERP data. For example, access to their ERP system by non-“U.S. Persons” as defined under ITAR is typically not allowed. To help customers comply with these access control measures, Epicor has long offered an ITAR support option, which—among other things—ensures support tickets are only routed to staff who are U.S. Persons or otherwise allowed access to ERP data. For Epicor Public Cloud customers—formerly called DT or MT SaaS—the Epicor Public Cloud Government option also restricts database access to only U.S. Persons, services are hosted only in the United States, and all data is securely stored within the country.

 

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About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers and Distributors. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.


Founded in 2009, Aimtron is a highly sophisticated printed circuit board assembly (PCBA) manufacturer that delivers thermal management technology to verticals such as medical, military, automotive, consumer, commercial, gaming, and alternative energy. Its capabilities range from small, rapid-turn prototypes to high-volume domestic and offshore manufacturing.

Success Highlights

Challenges

  • Inability to plan at group level because of poor alignment across different departments
  • Legacy system could not cope with new acquisitions
  • Inadequate supply chain planning
  • Tough compliance laws

Solution

  • Epicor® ERP

Benefits

  • Increased efficiency with consolidation of data across multiple legal entities and real-time data monitoring
  • Eased compliance with U.S. industry regulations
  • Integrated platforms across the entire supply chain
  • Saved more than seven percent on inventory costs
  • Reduced production staffing costs by 23 percent

 

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About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers and Distributors. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.


Applied Composites Engineering (ACE) is a premier supplier of aviation and aerospace products and services. This includes creating products from concept to finish for the international commercial, corporate, and military aircraft industries.

Success Highlights

Challenges

  • Tie together operations end-to-end and ensure all manufacturing processes, products, and services meet stringent governmental and industry regulations

Solution

  • Epicor® ERP

Benefits

  • Visibility to make on-the-fly changes based on customer requirements
  • Review details, communicate changes, and make informed decisions in minutes
  • Create automated procedures ensuing all processes meet certification standards
  • Increased profitability by tracking the shelf life of materials and reducing the amount of inventory kept on hand
  • Better identify the time and activity spent on each operation

 

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About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers and Distributors. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.