Artwork for podcast Auto Supply Chain Prophets
What's Next for EDI? Be Part of the AIAG Survey
Episode 7018th November 2024 • Auto Supply Chain Prophets • QAD
00:00:00 00:21:37

Share Episode

Shownotes

At the heart of The Prophets’ vision are “The 24 Essential Supply Chain Processes.” What are they? Find out, and see the future yourself. Click here

Are APIs the future of automotive data exchange? Fred Coe, the chair of AIAG’s business-to-business committee and Global B2B and Portal Leader at General Motors, believes they might be.

In this episode of Auto Supply Chain Prophets, Fred joins Jan Griffiths and Terry Onica to explain why APIs are stirring up excitement in the auto industry — and why they’re not quite ready to push EDI aside just yet.

With decades of EDI history on their backs, supply chains are now looking to APIs for a faster, more flexible way to move data across tiers. Fred shares insights from other industries already using APIs, from healthcare to retail, and talks about Europe’s early steps to standardize APIs in automotive logistics.

As the auto industry prepares to catch up, AIAG is launching a survey to gather industry feedback on EDI and API integration. This is an opportunity for the entire industry to share their input—every voice matters, from IT staff to supply chain leaders.

Tune in to learn how APIs could reshape data exchange in the automotive world, and don’t miss Fred’s parting advice for supply chain leaders: Understand every link in your chain, from tier one to the end. And as Terry reminds us, please don’t forget to complete the upcoming survey to help shape the future of EDI!

Themes discussed in this episode:

  • How Electronic Data Interchange (EDI) has evolved and continues to play a critical role in the industry’s data processes
  • The potential of Application Programming Interfaces (APIs) to complement and, in some cases, replace certain EDI functions, allowing for faster, real-time data exchange
  • The need for unified standards across OEMs and suppliers to avoid fragmented systems, especially with the introduction of new technologies
  • Balancing the adoption of new technologies like APIs with the existing EDI infrastructure
  • What a standardized, API-enhanced data landscape could mean for efficiency, cost savings, and competitive advantage in the automotive industry
  • How other industries (like healthcare and retail) and regions (mainly Europe) that are using APIs, and what the automotive industry can learn from them
  • How leadership engagement and buy-in are crucial for successfully implementing and standardizing new technologies in the supply chain

Featured on this episode: 

Name: Fred Coe

Title: Chair, AIAG EDI Advisory Group; Global B2B and Portal Leader, General Motors

About: Fred Coe is a global thought leader in EDI and automotive supply chain operations, known for driving complex eCommerce transformations across industries like manufacturing, retail, energy, and healthcare. With a consultative and inclusive approach, Fred has led GM’s B2B Center of Excellence to deliver industry-leading solutions, building strong relationships with stakeholders at every level. Passionate about fostering value, developing future leaders, and elevating customer service, Fred’s leadership has shaped business innovations and set new standards for operational excellence.

Connect: LinkedIn

Mentioned in this episode:


Episode Highlights:

[05:56] APIs Explained? Fred breaks down APIs as a quicker, more flexible way for machines to share data, like a faster version of EDI. With AIAG exploring ways to standardize them, APIs could be the next big shift in automotive data exchange.

[10:09] API on the Rise: Industries like healthcare and retail have already embraced APIs, running them alongside traditional EDI for flexibility. Europe is catching on, too, with big OEMs testing standardized APIs for logistics – and the signals show it’s only a matter of time before demand grows in North America.

[12:20] EDI and APIs, A Perfect Pair? Fred clarifies that APIs aren’t here to fully replace EDI—at least not anytime soon. Instead, APIs offer a flexible, faster complement to EDI, allowing specific data exchanges to run more smoothly alongside traditional systems.

[13:57] Inside the Survey: Fred outlines the survey’s focus: understanding EDI models in use, current API experiences, and industry interest in API adoption. It’s a call for voices across IT, supply chain, and customer service to weigh in, shaping a future that truly meets industry needs.

[17:54] Survey Launch Details: The survey goes live in mid-November, with results expected in Q1 next year. AIAG, along with OEMs and partners, will spread the word, so keep an eye out for the link on LinkedIn and in your networks—don’t miss the chance to share your input!

[20:10] Advice to Supply Chain Leaders: Fred’s advice? Know your supply chain inside and out—from tier one to the very end. And Terry’s? Simple: fill out the survey to make your voice heard and shape the future of EDI!


Top Quotes:

[04:50] Fred: “We've been talking here for a better part of the year about what role, if any, could APIs play in helping to augment our existing EDI processes. And they're so prevalent in every industry now, every time you get onto the Internet and you look up the weather, when you go to the doctor's office and you pull patient records, APIs are virtually everywhere now. And as we've talked internally to the group, we get really excited about it and say there's a lot of potential here, but we're not under the "Build it and they will come" model. And so, what we're looking to do is we've crafted a survey that we want to take out to the automotive industry, and get as many responses as we can and find out from the industry, where are they at?”

[05:20] Fred: “An API stands for an Application Programming Interface, and it's very similar to EDI. When we use the terms EDI and API, it's exchanging data in a structured format from machine to machine. And like EDI, whether you're using AS2 or FTPS or SFTP, you can pull data, you can push data with APIs. It's primarily in the backend. It's based on JSON or XML, but it is direct from application to application, and you're talking seconds in terms of response time, as opposed to minutes with the EDI. And so, that API really provides some distinct advantages with some functions that are currently being done with EDI to help augment that process and getting data.”

[07:41] Fred: “With APIs and the prevalence in the market today, I think it's just irresponsible not to look at it to say, "How can we start to at least evaluate and potentially adopt some of these?" And if we do find with the survey that there's interest in the market, and AIAG is in a unique position, Terry and you alluded to it earlier, right? That's to help standardize how we implement those APIs. What we don't want to see is if these APIs hold promise that all of the different OEMs or the tier ones to develop their own standards, right? And then we're going to be back where we were in the eighties and with everybody doing their own thing and then having to corral all of that into a standard later. So, we want to get ahead of it and help develop those standards if there's interest.”

[09:44] Fred: “We want to hear from everybody. I want to hear from the people that say, "I want to do it all with APIs," and I want to hear from our diehard community that says, "Nope, EDI works fine now; we don't need to change it. But maybe this needs to be tweaked, or that needs to be tweaked." But we want to hear all opinions and all voices so that we can make a decision that is with the most consensus that we can get from the industry.”

[20:19] Fred: “Get to know your supply chain, not just your tier ones, but your tier twos to your tier end. The more you know about your supply chain, the more that you can predict success as you go forward.”

Transcripts

[Transcript]

[:

[:

[:

[:

[:

[:

[:

[:

[:

[:

[:

[:

[:

[:

[:

[:

[:

[:

[:

[:

[:

We've got lots that we would have to replace and figure out how it would be replaced. So, this survey—we can't stress enough how critical it is. Fred, I have a question, though, for you: When we look at APIs, are there other industries that are having success with them, and what benefits are they seeing? Or are people even in the auto industry using them? Could you tell us about that?

[:

[:

[:

But, in terms of replacing EDI, I don't see it replacing that infrastructure, at least in my lifetime. But I do see APIs providing potentially another parallel path for it, or complementing some messages and maybe some processes outside of that. Maybe that API would feed into an EDI message, such as an ASN. If a supplier needs to go pull a tracking number from a carrier, for instance, you know, that would be another potential use for APIs. But the traditional VANs, the structured messages that we have today, are very complicated, and to think that we're going to replace all of that complexity with an API off the bat is just not realistic.

[:

[:

[:

[:

[:

[:

[:

[:

[:

[:

[:

[:

[:

[:

[:

[:

So, those are several different ways that you can reach out to get the survey or always contact AIAG, as well, too. They can get you a copy of the survey as well, I'm sure it'll be in their newsletters and bulletins. But, by all means, start watching for it for the middle of November, and we're really looking forward to hearing what people have to say and where people want to go.

[:

[:

[:

[:

[:

[:

[:

[:

[:

[:

[:

[:

[:

[:

Links

Chapters

Video

More from YouTube