What is EDIWheel and why it is used by leading companies in tire industry

EDIWheel is a communication standard used by tire manufacturers to communicate with their customers. Thanks to it, automotive companies around the world have been exchanging data (especially business information and documents) quickly, efficiently and reliably for over 20 years. How exactly EDIWheel works and how to start using it is described in the article.

How and why EDIWheel was created

The EDIWheel organization was founded in the late 1990s by representatives of the world's largest tire manufacturers (Bridgestone, Continental, Michelin and others). They wanted to develop an industry standard that would support the B2B tire industry by establishing simple and accurate data exchange. Thanks to EDIWheel, tire companies get rid of manual rewriting (and the errors associated with it) and exchange information faster. As a result, they reduce operating costs, improve service quality and shorten customer-supplier processes.

Today, EDIWheel is used by companies from the tire industry all over the world. In addition to the tire manufacturers themselves, it is also used by their customers from among car manufacturers and tire dealers. At the same time, software companies that act as a solution intermediary also work with EDIWheel.

The main advantages of the EDIWheel common standard are:

• it is a solution that is compatible for tire manufacturers from all over the world,
• the solution is tailored to the needs of the tire market,
• the technology is scalable and constantly evolving according to the requirements of customers, industry and authorities,
• it can be gradually integrated into the company.

How EDIWheel works

The connection via EDIWheel can be set up between supplier and customer in two ways:

• directly between the two counterparties
• or through an intermediary in the form of a software provider who coordinates the integration and guarantees its operation.

In EDIWheel, data can be exchanged via two communication channels:

1. via API (application programming interface),

2. via traditional EDI (a standardized data exchange format used across segments),

3. possibly a combination of both.

1. How API communication works

Through the API, the customer is connected to the supplier's ERP system and sends queries or requests to it, to which they receive immediate answers. In practice, it works in such a way that the supplier provides the customer with a URL address (API key) and login data, whereby the customer establishes a communication channel with the supplier's ERP (via a browser or even directly outside the browser). The requests sent are most often in the form of XML messages, which the ERP system opens and processes.

Through API, you can solve:

• sending catalogs,
• queries about availability of goods,
• sending orders and their confirmations,
• checking order status and delivery information.

The API is usually used by customers for purchases in small quantities and for seasonal orders (even without the need to check the availability of goods).

The disadvantage of the API is that it depends on a good internet connection on both sides, and when sending messages with a large amount of data, the response may take longer (e.g. for large orders with many items). Moreover, invoices cannot be sent via API - EDI is required for those.

2. How EDI communication works

As with an API, there is an exchange of data messages between the supplier and the customer, but the messages are sent via EDI. The received message is automatically transcribed into the ERP system, so no one has to rewrite the documents.

EDI is the preferred solution for exchanging large amounts of data where immediate response is not required. Communication via EDI is also more reliable, as there is no risk of the mentioned problems associated with the quality of the connection or the size of the data file.

The following types of messages can be sent via EDI:

• PRICAT (product and price catalogs),
• ORDERS (orders),
• ORDRSP (order confirmation),
• DESADV (notice of dispatch of goods),
• INVOIC (invoices),
• REMADV (notice of payment).

The supplier and the customer determine in advance which types of messages they will exchange and set up their processes accordingly.

3. The most efficient choice for EDIWheel: a combination of API and EDI

The combination of both methods is the most advantageous for companies in the tire market, because thanks to it they make the most of both methods of communication and cover their entire business process.

• Through the API, the customer receives an immediate response to the availability of goods, delivery status, or quickly sends orders.
• EDI, on the other hand, is a more reliable way to exchange more comprehensive messages and documents, such as orders, delivery notes or invoices.

Together, both methods of communication will save companies more time and costs, improve work productivity and the availability of up-to-date information from multiple business partners.

Companies looking to implement EDIWheel should therefore look for a software vendor that offers both an API and an EDI solution as a package. Contact us first, at GRiT we will consult EDIWheel with you and help you find a suitable solution.