China’s Automotive Industry: B2B/EDI Integration as the Key to Success

The automotive industry in China is growing rapidly and is now a global leader in production and sales. With more than 30 million vehicles sold annually and a network of over 120 OEMs and 200,000 suppliers1 , the industry is a force that can only be mastered through precisely integrated processes. In this dynamic environment, the digitalization of supply chains plays an essential role. But how can such a diverse and geographically dispersed industry be efficiently networked? This is where B2B/EDI integration comes in.

The challenge: Unique conditions in China’s automotive market

China’s automotive industry faces specific challenges that are hardly comparable to those of other markets. The sheer size of the country and the geographical distribution of production facilities require seamless networking across large distances. B2B/EDI integration creates the necessary real-time transparency here: OEMs and suppliers can synchronize their production and delivery schedules and identify bottlenecks at an early stage. Without this automation of supply chain processes, just-in-time strategies, which are so important in China, would be unthinkable.

But size is only one challenge. China’s automotive industry is also a melting pot of established and new players. Over 200,000 suppliers – including many small companies – make up the diversity of the market. Integrating all of these partners seamlessly into the supply chain is a major task.

Data-driven work in real time – the role of APIs

Data-driven business models are indispensable for managing growth and market requirements in real time. APIs open up a new level of flexibility for the automotive industry: They enable access to up-to-date data and facilitate collaboration within the network. The SEEBURGER BIS Platform supports this development with API-supported integrations that not only optimize EDI processes, but also enable real-time analyses and immediate adjustments along the supply chain. This enables companies to react immediately to market changes and develop innovative business models that fully exploit the potential of the digital economy.

Automation and stability through B2B integration

At the heart of this transformation is automation. The automation functions of the BIS platform enable automated communication between OEMs and suppliers. Real-time monitoring, notifications and the automation of data exchange ensure that errors are detected early and rectified immediately. The migration to modern ERP systems such as SAP S/4HANA is an additional step towards future-proofing.

Just-in-time and just-in-sequence – precision at the pace of industry

Efficiency and speed play a key role in the automotive industry. Just-in-time and just-in-sequence delivery strategies are proven methods for keeping production on pace and minimizing costs. The SEEBURGER BIS Platform enables companies to perfectly coordinate their production and delivery schedules. For smaller suppliers without their own ERP systems, the WebEDI solution offers a quick and easy connection so that these partners can also become part of the integrated network.

Successful integrations in practice: SEEBURGER use cases

The advantages of this digital networking can be seen in numerous use cases of the BIS:

• OEM and OEM Joint Ventures: In collaboration with OEM joint ventures specializing in New Energy Vehicles (NEV), SEEBURGER supports the phased integration of just-in-sequence call-offs, financial processes and the implementation of KPI dashboards.
• OEM and suppliers: Transparent and secure EDI solutions enable OEMs to process data efficiently and onboard new partners smoothly via the Community Management Application (CMA), which organizes and manages the entire supplier base.
• Tier 1 supplier for batteries: End-to-end integration enables seamless tracking and analysis along the entire supply chain. Cloud-based services for supplier onboarding and B2B integrations enable comprehensive transparency and efficiency in collaboration.

Integration of OEM suppliers

How SEEBURGER helps

B2B/EDI integration plays a key role in the efficiency of the Chinese automotive industry. SEEBURGER relies on flexible, scalable solutions that help OEMs and suppliers adapt efficiently and reliably to changing market requirements. With agile business models in mind, API integrations and data-driven enhancements such as supply chain analytics are crucial to building sustainable and intelligent supply chains. One central platform, one experience, all integrations, all deployment models. The SEEBURGER BIS Platform enables the seamless networking of applications, people and processes, whether in the cloud, a hybrid environment or on-premises.

Source: https://blog.seeburger.com/chinas-automotive-industry-b2b-edi-integration-as-the-key-to-success/