Enterprise Resource Planning is a business process management software used in various small-scale and large-scale industries. It helps you manage key business functions in different sectors like chemical, construction, food processing, oil, manufacturing industry etc. ERP is a prominent solution for automotive industry that can be of great use for businesses in managing various functions such as assembly tasks, manufacturing, report maintenance fort each transaction, payment and bank related transactions.
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The market demand for automobile industry is determined by affordability, infrastructure, product innovation and fuel price. Automotive industry encounters several challenges in key business processes, which are mentioned below:
- Maintaining Customer demands
- Inventory management
- Managing bill of materials
- Process streamlining
- Shop floor management
- Production forecasting
- Order management
- Production analysis
- Accurate analysis of rejection, rework etc.
- Cost management
ERP systems have the required capabilities to streamline processes and overcome majority of the challenges mentioned above. ERP for automotive industry is fully integrated solution for cost effective process and is one of the major reasons why many players in the industry implement ERP solutions. For example, Sage Software Solutions Pvt. Ltd. helps automotive industries track, analyse, control materials, machine, labour and cost. It also enables seamless integration of inventory, purchase, sub-contracts and accounts.
In Automotive industry, different type of processes are practiced which can possibly be handled by ERP software. Considering one process example, suppose a customer wants to assemble an automobile, he will initiate the process by purchasing the raw material. For doing so he will need to put a purchase order using purchase module. Once the raw material is obtained, it could be stored into warehouse location. This single process involves multiple billings and specification entries. ERP helps you manage and maintain all the resource data throughout the process. Otherwise if the consistent workflow balance is not maintained throughout the process, it can cause the chances of error.
Meeting critical industry standards such as the Materials Management Operations Guideline/Logistics Evaluation is a necessity in automotive industry. ERP system contains different modules to track transactions such as purchase module, inventory module, store and many more. ERP automotive tailored processes and best industry inherent practices help automotive suppliers improve supply chain planning and visibility, mitigate supply chain risk, increase profits and reduce costs.
How ERP can benefit automotive industry Processes:-
- ERP systems play a significant role in reducing costs of quality by ensuring that the company has efficient and effective quality-assurance management systems.
- ERP strengthens business collaboration and communication thereby enhancing database security and optimizing database accessibility. It is also capable of manipulating and sharing data in real time.
- The right ERP solution allows different teams in your organization to generate different reports depending upon inventory status updates, key performance indicators, income-expense reports and much more. This enables automotive organization make decisions and respond to crises quickly.
- ERP software ensures that each resource, each minute, and each employee is maximized effectively to reduce wasted time and enhance profitability. ERP systems are admired among various organization for its ability to increase productivity and make business processes efficient.
- Mostly ERP is known for its capability to improve internal business operations. However, it is seen that when ERP is used with CRM systems, it can actually have a positive effect on customer relationships and marketing tasks.
- Like other automotive industries, if your organization is depending heavily upon stable inventory and production processes, you are still having a scope of improvement. ERP software can help you simplify the inventory process. It avoid problems like holding costs, where you end up keeping excess inventory and incur unnecessary costs in the process.