CASE STUDY

Tesla Supplier Standardizes andAutomates Logistics Through CData Arc
AS2
Tesla founder Elon Musk has a vision for Tesla, “To accelerate the global transition to sustainableenergy.”
To execute on that vision, Tesla acquired US solar power system supplier SolarCity in 2016 andbecame the world’s only vertically integrated renewable energy company, providing customers withend-to-end clean energy products. Tesla now produces cutting-edge electric vehicles, energy walls,and solar roofs.
Producing Tesla’s vast range of renewable energy products and electric vehicles requires amassive, worldwide supply chain.

A Critical Tesla SupplierTesla relies on an advanced manufacturing mold factory to provide innovative mold design andmanufacture 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

Just some examples of their products include:•Cameras (Canon, RICOH, Panasonic)•Mobile phones (NEC, FUJISU, KYOCERA), projectors, printers, and automotive parts (TOYOTA)•

Optical electronic devices•Computer peripheral appearance parts and structural components

CData Software | Tesla 								

1CASE STUDY

Tesla relies on this advanced manufacturer for high-tech devices in many Tesla systems.
To streamline global purchasing and execute on its vision, Tesla has invested in supply chain
automation by integrating an electronic data interchange (EDI).

The Challenge: Tesla and Its Supplier Had Logistics Systems
Speaking Different Languages
Tesla’s advanced mold manufacturer needed to build an integrated EDI system that allowed theirinternal logistics system to interface with Tesla’s. For the mold manufacturer, the integration was
also a critical business requirement needed to meet its customers’ core supply needs.
The advanced mold manufacturer 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 purchaseorders and messages to and from suppliers in a single digital environment. The objective is toreduce 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, ANSI X12, is used by Tesla.
To meet Tesla’s requirements for EDI standardization, the manufacturer had to translate themessages from its internal Enterprise Resource Planning (ERP) software system to ANSI X12.
The actual business type of docking the modern mold manufacturer uses in its ERP messages
includes:••Supplier Receives:•830 (planned schedule)•862 (shipping plan)•850 (purchase order)

Supplier Sends:

CData Software | Tesla 								

2CASE STUDY•

810 (invoice)•856 (shipping notice)

The precision-mold supplier needed to establish a proper EDI system in order to connect theirsystems, and they also needed a proper EDI system in order to use the AS2 transmission protocolfor transmitting X12 EDI messages that conform to international standards.
AS2, which is short for Applicability Statement 2, is an electronic data interchange protocol
designed to transmit data securely and reliably online.

The Solution: Seamless Transformation Between ERP and X12Messaging
The advanced precision-mold manufacturer selected CData Arc for EDI integration and securetransfer. CData Arc is a simple and effective middleware that helps enterprises quickly integrate
solutions and efficiently transfer information without adding complexity. The AS2 capabilities ofCData Arc have been officially certified by Drummond for 12 consecutive years, and CData Arc
provides customers with secure, efficient, manageable, and scalable B2B messaging.
CData Arc enables the exchange of business system data between enterprises, empowering
suppliers and purchasers to:•Automate business processes between parties.

•Help companies integrate supply chains.

•Reduce inventory.

•Achieve lean production.

The EDI Schema that comes with CData Arc successfully converts data between X12 messages
and XML, helping customers seamlessly interface EDI systems with enterprise ERP systems.
Implementing CData Arc helped Tesla and its advanced mold manufacturer 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, an expert EDI systems integrator assisted Tesla
throughout the process of integrating CData Arc.

CData Software | Tesla 								

3Results: Automated, Efficient & Accurate EDI Translation
Using the AS2 transmission protocol, Tesla’s supplier has connected its ERP with Tesla’s
system and transmits EDI files conforming to the international X12 standards. As messages areexchanged, the EDI platform is fully integrated with internal ERP systems, allowing the entire
business process to be automated without manual operation. Through standard automations,Tesla has eliminated tedious manual work and errors from entering data by hand with its supplier.
Together, they now enjoy many of the key advantages EDI offers:•Fast and accurate electronic data exchange•

Safety and reliability in data transfers•

Fewer paper documents•

Major cost savings and waste reduction•

And a deepening relationship between trading partners

CData Arc has made it all possible as a high-performance, reliable, and fully scalable product thatsimplifies the process of producing, consuming, and integrating data.

CData Software is the real-time data connectivity company. Our connectivity solutions provide easy access to live data fromhundreds of on-premises and cloud applications. Consumable by any user, accessible within any application, and built for all
enterprises, CData is redefining data-driven business.

CData Software | Tesla									4