In the late 1960s, companies began developing in-house computer systems and internal networks to streamline business functions. OEMs and suppliers developed proprietary systems in the 1970s, but these required suppliers to maintain different electronic data interchange (EDI) rules and data formats with each customer, a very costly and time-consuming endeavor. The industry needed a standard set of formats and protocols for effective and efficient electronic commerce.

After thorough technical reviews of all options, AIAG elected to adopt the American National Standards Institutes ASC X12 protocol with its variable length format. AIAG then worked with our sister organizations in Europe (Odette International) and Japan (JAMA, JAPIA) to harmonize this standard globally. AIAG subsequently published the industry’s first global EDI Implementation Guideline.

AIAG’s work in EDI created shorter lead times, more inventory turns, reduced cost of data entry, fewer data entry errors, better scheduling, faster release processing, and increased productivity. Since 1982, AIAG helped companies correctly implement EDI through its implementation guideline and training. As a result of consistently deployed EDI, an AIAG member company study estimated a savings of $71 per vehicle and overall industry savings of about $1 billion per year.