Supply Chain Intelligence: from conflicting information to transparency across the supply chain.

Supply chain intelligence means running the supply chain on data: orders, delivery schedules, despatch advices, stock levels and invoices are exchanged digitally, captured centrally and translated into metrics. Unlike classic supply chain management, which covers planning and organisation, the focus is on transparency and analysis: where the flow stalls, which supplier delivers late, where manual intervention occurs. The basis is automated electronic data interchange (EDI) with customers and suppliers.

EDI (electronic data interchange) is the standardised, automated exchange of business documents between the IT systems of trading partners. Orders, delivery schedules, despatch notes and invoices are no longer sent as PDF or fax and keyed in manually, but transferred directly from ERP to ERP in a defined format such as EDIFACT or VDA. The recipient processes the message without a media break. EDI has been standard in automotive, retail and logistics for decades.

The main advantages of EDI are speed, accuracy and traceability. Data is not retyped but transferred automatically, which removes entry errors, queries and delays. Processes such as order-to-cash run faster, invoices are paid earlier, delivery schedules are in the system immediately. Compared with supplier portals, where staff enter data by hand, duplicate maintenance disappears. Every message exchange is logged, which simplifies audits and complaint cases.

The most common EDI standards in Europe are EDIFACT, VDA and ODETTE. UN/EDIFACT is the international, cross-industry standard with message types such as ORDERS, DELFOR (delivery schedule), DESADV (despatch advice) and INVOIC. The VDA recommendations are older fixed record formats for the German automotive sector, for example VDA 4905 for delivery schedules. ODETTE is the European automotive organisation behind its own EDIFACT subsets and the OFTP2 transmission protocol. ANSI X12 dominates in the United States.

EDIFACT and IDoc are both formats for structured business data, but at different levels. EDIFACT is a vendor-neutral exchange standard for communication between companies. IDoc (intermediate document) is SAP's internal data format, used to process messages into and out of the SAP system. In an EDI connection to SAP, a mapping translates incoming EDIFACT or VDA messages into IDocs and back. Both are needed in the same process chain.

A delivery schedule to VDA 4905 is a standardised message in which a manufacturer sends its supplier the requirements for the coming weeks and months, usually rolling, with a firm and a forecast horizon. The just-in-time call-off to VDA 4915 adds daily-level control. Automating the delivery schedule means feeding the message via EDI straight into the ERP, where it updates requirements, flags differences and triggers production planning. Manual transfer from portals disappears.

An EDI interface connects your own ERP system with your trading partners' systems. It consists of three building blocks: communication (protocols such as OFTP2, AS2 or SFTP), mapping (translation between the partner format and the internal format) and integration into the ERP. In an EDI connection to SAP, messages are handed over as IDocs and assigned to the correct documents via partner profiles. The interface can be run in-house or bought as a managed EDI service.

Managed EDI services, also called EDI as a service, mean that an EDI provider supplies and operates the entire EDI infrastructure: communication servers, mappings, partner connections, monitoring and support. The company needs neither its own EDI software nor EDI specialists. New partners are set up by the provider and message flows are actively monitored. Billing is usually a monthly fee or based on message volume. metrologx offers managed EDI services cloud-based and ERP-integrated.

When comparing EDI providers, fit matters more than feature lists. Key criteria: experience in your industry and its standards, existing connections to your relevant customers, depth of integration into your ERP, response times and monitoring in live operation, transparent pricing without hidden per-mapping costs, and scalability as message volume grows. An EDI provider for mid-sized companies should also bring process understanding, because EDI reaches into planning, shipping and accounting.

There is no statutory EDI obligation for automotive suppliers, but in practice EDI is a prerequisite for working with almost all OEMs and large tier 1 suppliers. The requirements sit in supplier manuals and logistics agreements: receive delivery schedules electronically, send despatch advices before delivery, transmit invoices electronically. Suppliers who cannot do this are not listed or pay fees for manual handling. For smaller suppliers this is often the trigger to introduce EDI.

If EDI has to be introduced quickly, for example because an OEM makes the connection a condition, an experienced provider can put the first partner connection into production within a few weeks. Three factors decide: the provider already knows that customer's requirements, your ERP has a robust interface, and master data is clean. Standard messages are preconfigured for the common OEMs; special cases extend the timeline. Always plan a test run in both directions.

WebEDI is a portal in which a supplier views a customer's EDI messages in the browser and enters responses such as despatch advices or invoices manually. It needs no EDI infrastructure of its own and is the simplest entry point. WebEDI is sufficient with only a few customers and low message volumes. Once delivery schedules arrive regularly, or data is maintained twice in portal and ERP, manual entry becomes a cost driver and an integrated EDI solution is more economical.

EDI can automate the entire order-to-cash and purchase-to-pay process. On the customer side: B2B ordering (ORDERS, ORDRSP), delivery schedules and just-in-time call-offs (DELFOR, DELJIT), despatch advice (DESADV) and invoice (INVOIC). On the supplier side the same messages in the opposite direction, plus stock reports. Automating order processing and exchanging invoices electronically reduces data entry effort and lead times. The largest effect comes when messages turn directly into documents and postings in the ERP.

Supplier evaluation works best with metrics from three areas: logistics (on-time delivery, quantity accuracy, response time to schedule changes), quality (ppm defect rate, complaint rate, results from incoming inspection or purchased part dimensional audits) and commercial (price development, terms). In an EDI-based process the data arises automatically: despatch advice and goods receipt give on-time delivery, measurement data gives quality. Supplier performance should be tracked over time, not only at the annual review.

The German Supply Chain Due Diligence Act (LkSG) obliges companies with 1,000 or more employees in Germany to carry out risk analysis, preventive and remedial measures, a complaints procedure and internal documentation. The reporting obligation towards the BAFA authority has been dropped; the due diligence duties remain, with the EU CSDDD to follow. Smaller suppliers are usually not in direct scope but receive the requirements contractually from customers. Transparency software keeps suppliers, documents and risk assessments in one place.