FCA US INFORMATION & COMMUNICATION TECHNOLOGY MANAGEMENT

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1 EDI ROADMAP FCA US INFORMATION & COMMUNICATION TECHNOLOGY MANAGEMENT

2 FCA US EDI Radmap Business Requirement All FCA suppliers and carriers are required t establish an Electrnic Data Interchange (EDI) cnnectin. FCA is cmmitted t imprving cmmunicatin within the supply chain, and replacing current infrmatin sharing methds with mdern day technlgies. EDI is cnsidered FCA s primary methd f cmmunicatin with its trading partners t supprt the Prcurement, Material Releasing, and Financial business prcesses. DIRECT Suppliers shuld lk at GPSIS n the esuppliercnnect.cm prtal and refer t Clause 190 that states EDI 856 ASN is required. Wh Will/Shuld Participate EDI is accessible wrldwide using lw-cst easy-t-use technlgies. Suppliers with ne r multiple lcatins (dmestic r internatinal) are able t establish EDI cnnectins with FCA. EDI users shuld peridically access the Glbal Supplier Prtal, Reference sectin, EDI Implementatin Guidelines link t btain additinal EDI dcumentatin. The EDI Manual is updated when changes ccur; n user id r passwrd is required t access. FCA understands that this cultural transfrmatin takes time t implement. Hwever, it is yur respnsibility as an FCA supplier t understand ur psitin with these requirements. Thse suppliers and carriers wh chse nt t participate in this new prcess will prcess will eventually fall utside f the infrmatin lp; thse wh d will becme effective Infrmatin Technlgy (IT) partners and may prsper with FCA in the glbal autmtive ecnmy. Suppliers shipping thrugh a NAFTA LCC Warehuse All suppliers shipping thrugh a NAFTA LCC Warehuse are required t have tw EDI cmmunicatin cnnectins: ne fr the manufacture lcatin utside the United States and ne EDI cmmunicatin cnnectin fr their NAFTA LCC Warehuse fr material management. Prject Timing and Rewards All suppliers are required t establish an EDI cmmunicatin link within 30 days after supplier receives the FCA Welcme Letter. At that pint, FCA will systematically eliminate access t ther avenues f infrmatin currently mail r faxed. FCA s Crprate Accunts Payable Department will n lnger prcess paper invices 30 days after suppliers are ntified f their requirements. Additinally, FCA will eliminate the paper check and require Electrnic Funds Transfer (EFT) t pay fr supplier services and prducts. The check stub detail is available thrugh the EDI Remittance Advice (820) transactin set. The EDI prcess imprves the prcurement t payment timeline and reduces cmplexity within the business prcess. Purchasing, Releasing, and Financial requirements are better understd and managed due t the eliminatin f paper, mail time, manual prcessing f infrmatin, and recnciliatin f receivables. Studies have shwn that suppliers with EDI have reduced manpwer, decreased elapsed time within the payment prcess, and imprved relatins with external custmers. 06/24/ FCA US

3 FCA US EDI Radmap Benefits/Csts Benefits Establishing an EDI cnnectin with FCA will immediately take paperwrk ut f the dcument prcessing rutine. Purchase Orders and Material Releases will be available immediately, as well as supplier invices prcessed within a 12-hur windw. Because f its wn technlgy FCA is able t reduce manpwer expenditures, expedite dcument prcessing, and satisfy its custmer requirements efficiently. Each supplier in turn is capable f achieving similar results by implementing a cmmunicating technlgy and mechanically prcess incming and utging infrmatin withut manual interventin. A supplier using EDI instead f a manual rder-entry prcess has the pprtunity t remve waste frm their system. A supplier may reduce premium freight csts by 20% and increase inventry turns by 10%. The less autmated a supplier is in their rder-entry prcess, the greater the cst-saving pprtunity. A supplier that cnverts frm a cmplete manual prcess t an EDI autmated prcess culd realize a ttal-cst reductin f 85%. Csts Csts fr establishing an EDI prgram will vary. Prductin Suppliers are required t supprt mre EDI transactin sets and cmmunicate real-time infrmatin t FCA. Nn-Prductin suppliers have less cst due t supprt a lesser number f transactins sets and nt requiring sphisticated releasing activities. Cst t establish an EDI cmmunicatin prcess is brken int tw areas. The mst expensive and sphisticated slutin is Supplier purchased r develped EDI sftware. The supplier will call FCA directly using in mst cases a PC, mdem (HTTPS EDI sftware), ($1,500-$3000), and yearly maintenance csts (ave. $600) See the Glbal Supplier Prtal, EDI Implementatin Guide, EDI Sftware Prviders list website fr mre infrmatin. The least cst slutin available is EDI ver the Internet. FCA has established a lw cst slutin utilizing the GXS TradeWeb service frm Glbal Exchange Services. This ptin is ptimal fr small (Prductin, Nn Prductin and Service & Parts (MOPAR) suppliers that receive/send between 1 and 350 business transactins per year. The supplier will cmmunicate t GXS Tradeweb thrugh the public Internet (avg., $20 mnth) using a PC, async mdem ($50-$100), and web brwser (free). All dcuments sent frm FCA t the supplier are at n cst. The GXS Tradeweb user is charged fr transactins submitted t FCA at a per dcument basis ($2-$5), dependent upn subscriptin fee and vlume. Visit the GXS Tradeweb, website r speak t a GXS representative at (800) , press ptin 2, then ptin 3, fr mre infrmatin. 06/24/ FCA US

4 FCA US EDI Radmap Suggested Technlgy Usage and Requirements FCA has established EDI transactin sets in alliance t its business prcess and pprtunities. In wrking with FCA s business units (Prcurement, Manufacturing, and Finance), and in cnjunctin with the Autmtive Industry Actin Grup (AIAG) ( cmmn EDI standards and prcesses are refined. Each EDI transactin set is develped and apprved by the United States f America accredited ANSI ASC gverning bdy. EDI standards are administered under the directin f the X12 Cmmittee. Each EDI transactin set is managed by versin cntrl level allwing fr enhancements and changes when business prcesses change. Suppliers shuld be aware f FCA s transactin set standards and review the EDI Implementatin Guide t stay infrmed f current versin levels. FCA s EDI Cnventins Manual is available fr dwnlad in Adbe Acrbat (PDF) frmat n the Glbal Supplier Prtal website. Implementatin guides are develped fr Prductin, Nn Prductin, Carrier, Cmmdity Prcurement, and Service and Parts suppliers. Additinal infrmatin is als available (e.g., testing, mailbxes, cntacts lists, and ASN errr cde lists,,). Hw t Acquire Access? 1. Determine which business type f Supplier r Carrier yu are: Prductin Service and Parts Nn Prductin Inbund Carrier Outbund Carrier Market Center 2. Dwnlad the assciated business type EDI Implementatin Guide lcated n the FCA Glbal Supplier Prtal website at: 3. Determine which cmmunicatin slutin wrks best fr yur cmpany: Optin 1, Supplier purchased/r develped EDI sftware Optin 2, GXS TradeWeb Internet slutin 4. Establish an EDI mailbx Optin 1, Testing prcedures are dcumented in the EBMX Implementatin guide. Optin 2, the EDI mailbx will be created by General Electric 5. Perfrm a system and EDI transactin test Optin 1, testing prcedures are dcumented in the EDI Implementatin Guide (EBMX Testing Prcedures) Optin 2, cntact GXS TradeWeb press ptin 1 t discuss testing prcedures fr FCA dcuments 6. Cntact FCA s EDI Cmmunicatins department Optin 1, call ne f the listed persnnel and infrm them testing is cmplete and that yur mailbx shuld be activated. Jeff Besh Betty Yung EDI manager Optin 2, GXS TradeWeb will cntact FCA n the supplier s behalf. 06/24/ FCA US

5 FCA US EDI Radmap Technlgy Usage fr FCA FCA uses EDI t cmmunicate infrmatin related t custmer/supplier business. Data that is prcessed real-time cmmunicated t a large number f suppliers, r managed within a paper envirnment are gd EDI candidates. FCA administers ver 45 unique EDI transactin sets with 204 business applicatins. Each data file is prcessed thrugh FCA s mainframe EDI translatr, Gentran frm Sterling Sftware. EDI files are sent and received frm tw surces, EBMX and Glbal Exchange Services. FCA s EBMX netwrk manages up t 14,000 EDI mailbxes supprting ver 45 gigabytes f supplier and carrier data mnthly. Mst FCA applicatins prcess its business transactin nce a day, nightly. A few applicatins prcess infrmatin multiple times during the day (e.g., Nn Prductin Releases, Supplier Receiving Advice, ). The supplier Advanced Ship Ntice is prcessed in real-time. Suppliers are required t submit the Advance Ship Ntice (ASN) immediately after the carrier leaves the supplier s ship-pint destined fr an FCA Assembly r Manufacturing plant. FCA prcesses the supplier s ASN in less than three minutes f receipt and returns a Functinal Acknwledgement back t the sender ntifying f acceptance r rejectin. Any ASN received by FCA, 30 minutes after the ship time will be cnsidered a late ASN. The ASN is cnsidered FCA s mst imprtant EDI transactin. Many activity prcesses are geared tward the success f EDI. Paper and mailing prcesses are eliminated, and critical decisins made at the plant due t timely and accurate ASN s. Internal FCA applicatins use infrmatin frm EDI transmissin t pay suppliers (Evaluated Receipt Settlements), and manage the flw f material. The ASN is used t initiate payment; the supplier Invice is n lnger required. Prductin Schedules (Material Release) ntifies suppliers f FCA s weekly and mnthly frecasted requirements fr 52-week. EDI is cnsidered the backbne and lifebld t FCA. As the autmtive industry cntinues t be transfrmed by the effect f technlgical develpment, grwing internatinal cmpetitin and market glbalizatin s des FCA. Using IT t supprt innvatin is the latest challenge twards an integrated cmputing and cmmunicatins infrastructure within ur business relatinships. FCA s IT investments have been re-fcused t deliver faster, mre reliable, and easier t use cmmunicatin f infrmatin thrughut the supply chain. Technlgy Usage fr Trading Partner Initial benefits t all suppliers will materialize frm receipt f FCA business requirements in hurs rather than days and the pprtunity t imprve the flw f infrmatin internally. The secnd phase f mst Supplier EDI prgrams is the pprtunity t receive infrmatin and mechanically integrate it int internal decisin making applicatins. A Purchase Order r Material Release request prvides the pprtunity fr the supplier t update a receivables system, initiate a shipment prcess, and maintain an infrmatin efficient Sales department. Pssibilities are ffered t Suppliers fr imprving the flw f infrmatin, and btain many business prcess benefits as achieved by FCA and many ther technically capable suppliers. Supprt Technical: EDI Sftware prvider, EDI Service Bureau, GXS TradeWeb AIAG als ffers educatinal classes n EDI within the autmtive industry ( FCA EDI: FCA EDI Cmmunicatins Betty Yung, Manager - (248) EBMX Help: 06/24/ FCA US

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