CASE STUDY

Tesla

Tesla Standardizes and Automates Logistics with Critical Supplier Using RSSBus AS2 Connectivity





Like the iconic scientist whose name they bear, Tesla has gained worldwide fame for boldly pushing the limits of man and machine. Their founder Elon Musk, the real-life inspiration for Iron Man, has placed Tesla at the epicenter of the electric vehicle revolution. His vision?

"To accelerate the global transition to sustainable energy."

Tesla wants to change not only the cars people drive, but also the way the entire planet and its nearly 9 billion people get their power. To execute on that vision, Tesla acquired US solar power system supplier SolarCity in 2016 and became the world's only vertically integrated renewable energy company, providing customers with end-to-end clean energy products.

Tesla now produces cutting-edge electric vehicles, energy walls and solar roofs.

Building their global vision requires big thinking and even bigger execution, with a massive, worldwide supply chain.

Dongguan Xinfeng Software Technology Co., Ltd. is a Critical Supplier for Tesla

Dongguan Xinfeng is a mold factory in Dongguan, China that provides professional mold design and manufactures a wide range of precision molds, including:

  • Small and medium-sized precision molds
  • Hot runner molds (hot runners: Husky, Moldmasters, Yudo)
  • Product injection molding
  • Painting
  • Vacuum plating
  • And semi-finished products for mobile devices

Examples of their outputs include:

  • Cameras (Canon, RICOH, Panasonic)
  • Mobile phones (NEC, FUJISU, KYOCERA), projectors, printers, automotive parts (TOYOTA)
  • Optical electronic devices
  • Computer peripheral appearance parts and structural components

Tesla relies on Dongguan Xinfeng components for high-tech devices in Tesla systems.

To streamline global purchasing and execute on their vision, Tesla has invested in supply chain automation by integrating an electronic data interchange (EDI).

Dongguan Xifeng and Tesla needed to build an integrated EDI system that brought together their internal logistics systems, which spoke different languages. For Dongguan Xifeng, the integration was a critical matter to meet their customer’s core supply needs.

The Challenge: Tesla and Its Supplier Had Logistics Systems Speaking Different Languages

Tesla and Dongguan Xifeng needed an EDI integration that met several key objectives:

  • Achieve point-to-point interfacing with the Tesla EDI system using the AS2 transport protocol.
  • Create a stable system with a secure, reliable business file transfer.
  • Ensure the file transfer system can accurately parse and generate EDI messages conforming to the international X12 standard.

The goal behind EDI integration and supply chain automation is to automatically handle purchase orders and messages to and from suppliers in a single digital environment. The result is to reduce complexity, human error, inaccuracies and delays throughout the supply chain. In an integrated EDI environment, all orders and messages between supplier and purchaser follow international standards.

One of these standards, the one Tesla uses, is ANSI X12.

To meet Tesla’s requirements for EDI standardization, Dongguan Xifeng had to translate the messages from their internal Enterprise Resource Planning (ERP) software system to ANSI X12. The actual business type of docking Dongguan Xifeng uses in their ERP messages includes:

  • Supplier Receives:

    • 830 (planned schedule)
    • 862 (shipping plan)
    • 850 (purchase order)
  • Supplier Sends:

    • 810 (invoice)
    • 856 (shipping notice)

Both Dongguan Xifeng and Tesla needed to establish a proper EDI system to connect their systems and use the AS2 transmission protocol to transmit X12 EDI messages conforming to international standards.

AS2, short for Applicability Statement 2, is an electronic data interchange specification designed to ensure that data is transmitted securely and reliably over the Internet.

The Solution: Seamless Transformation Between ERP and X12 Messaging

Dongguan Xifeng selected RSSBus Connect for EDI integration and secure transfer. RSSBus is a simple and effective middleware that helps enterprises quickly integrate solutions and efficiently transfer information — without adding complexity. The AS2 capabilities of RSSBus Connect have been officially certified by Drummond for 12 consecutive years, and provide customers with secure, efficient, manageable, and scalable B2B messaging.

RSSBus Connect enables the exchange of business system data between enterprises, allowing suppliers and purchasers to:

  • Automate business processes between parties
  • Helping companies integrate supply chains
  • Reduce inventory
  • Achieve lean production

The EDI Schema that comes with RSSBus Connect successfully converts data between X12 messages and XML, helping customers seamlessly interface EDI systems with enterprise ERP systems.

Implementing RSSBus Connect helped Dongguan and Tesla to configure AS2 information for secure transmission by combining:

  • AS2 signature
  • S/MIME encryption
  • Digital certificates
  • And MDN receipts

To ensure a fast, high-quality EDI implementation, our local Chinese partner assisted Dongguan and Tesla through the process of integrating RSSBus Connect.

Results: Automated, Efficient & Accurate EDI Translation with Tesla

Using the AS2 transmission protocol, Dongguan has connected their ERP with Tesla's system and transmits EDI files conforming to the international X12 standards. As messages are exchanged, the EDI platform is fully integrated with internal ERP systems, allowing the entire business process to be automated without manual operation. Through standard automations, Dongguan and Tesla have eliminated tedious manual work and errors from entering data by hand.

Together, they now enjoy many of the key advantages EDIs have to offer:

  • Fast and accurate electronic data exchange
  • Safety and reliability in their data transfers
  • Reduction in the consumption of paper documents
  • Significant cost savings and waste reduction
  • And a deepening relationship between trading partners

RSSBus Connect has made it all possible as a high-performance, reliable, fully scalable product that simplifies the process of producing, consuming and integrating data.







Simplify your Integration Today with RSSBus Connect

RSSBus (www.rssbus.com) is a leading provider of data access and connectivity solutions, specializing in the development of data integration technologies for realtime access to online or on-premise applications, databases and web APIs.

Our flagship product, RSSBus Connect, is used by more than 100,000 customers worldwide and is the only Drummond Certified AS2/AS4 solution that is completely free for use with a single trading partner.


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