XML (Extensible Markup Language) is a flexible, text-based format for storing, transporting, and exchanging structured data between different software systems and platforms. Unlike proprietary file formats that only specific applications can read, XML uses human-readable markup tags to define data elements and their relationships, making it a universal language for data exchange across diverse manufacturing systems, supply chain partners, and business applications.

In manufacturing environments, XML plays a critical role in system integration and data sharing. When your ERP system needs to send order information to a supplier’s system, or when your MES needs to exchange production data with quality management software, XML often serves as the common format both systems understand. The beauty of XML lies in its self-describing nature. Each piece of data is wrapped in tags that explain what the data represents, so receiving systems can interpret the information correctly even without prior knowledge of the sender’s database structure.

For example, a purchase order transmitted in XML might contain tags like <OrderNumber>, <PartNumber>, <Quantity>, and <DeliveryDate>, with the actual values nested between opening and closing tags. This structure is both machine-readable (software can parse and process it automatically) and human-readable (technicians can open the file in a text editor to troubleshoot issues). XML supports hierarchical data structures, so complex relationships like a purchase order with multiple line items, each with multiple specifications, can be represented clearly.

Manufacturing standards organisations have developed industry-specific XML schemas for common transactions. EDI (Electronic Data Interchange) increasingly uses XML-based standards for purchase orders, shipping notices, and invoices. Product lifecycle management systems use XML to exchange CAD metadata and bill of materials information. Quality management systems share inspection results and certificates of conformance in XML formats. Equipment vendors use XML-based standards like OPC UA to enable communication between shop floor devices and enterprise systems.

The flexibility of XML comes with some trade-offs. XML files are typically larger than binary formats because all the descriptive tags add overhead, and parsing XML requires more processing power than simpler formats. For high-volume, high-speed data exchange, some applications use more compact alternatives like JSON. However, XML remains the standard for complex data structures, regulated industries requiring rigorous data validation, and situations where data must be archived long-term in a format that will remain readable regardless of software changes.