Five Benefits of ERP in Automobile Components Manufacturing

Five Benefits of ERP in Automobile Components Manufacturing

The automotive industry is one of the largest and most versatile sectors around the globe and is evolving continually with imminent resurgence. With a record-setting pace, the automotive industry has forecasted increased global sales of passenger cars to hit the market. Considering the rising global competition, it is always wise to invest in a ground-breaking software solution that can manage organizational operations on a single platform.

Automotive component manufacturers deal with manufacturing an array of products, such as piston engine valves, control valves, propelling nozzles, and thousands of other components used to assemble vehicles. A single car has approximately 30,000 parts – from the largest component to the smallest screw. Manufacturing of components parts is always dependent on the finished products the parts go into. It is extremely difficult for automotive component manufacturers to manage multiple vendors, the production process, and the procurement of quality items. With new cars launched every other day, the demand for innovative tools and equipment has also grown remarkably.

As the new players are making giant strides in the component manufacturing industry, well-established original equipment manufacturers (OEMs) are witnessing intimidation. Automotive component manufacturers are looking for innovative software solutions to help them bring together every business process so teams work efficiently and with dedication. It is also crucial for them to abide by the stringent policies and regulations laid out by the regulatory groups.

Thus, to stand out in this cut-throat competition, it is better to invest in a powerful and nimble Enterprise Resource Planning software solution. It can handle every facet of the business seamlessly and allow organizations to work remotely from anywhere.

Let’s have a look at how an ERP solution can benefit automobile component manufacturers:

1. Comprehensive traceability

It is paramount for automotive manufacturers to abide by government regulations. If you fail in shipping a bunch of quality goods at the right time, it will directly affect the business’s goodwill and customer satisfaction. To make sure that resources are traced with precision, ERP facilitates the tracking of individual bins, packages, resources, and all the processes included.

As electrical and communication components have become an integral part of every vehicle, quality and reliability should be the topmost priority. Auto components manufacturers should seamlessly track which product lots have been procured, where they went for the production process, who is handling them, and where they will be stored in the warehouses. Manufacturers should understand the importance of traceability throughout the value chain so that products are not recalled and plans are executed as devised.

2. Supply Chain is managed with accuracy

Automotive manufacturers strive hard to deliver unmatchable customer value that can drive their sales and build a good rapport. ERP can manage the mission-critical parts of your organization. It keeps inventory aligned, plans for the materials and resources required for production, manages supply and demand, and keeps data safe. ERP is a unified system that offers you functionality such as:

–    Material Requirement Planning

–    Master Production Schedule

–    RCCP and Pegging

–    Simulation and Actual Run

–    Time Fence

–    Lead Time Calculation for FG

–    Global / Individual Company Planning

3. Electronic document management and collaboration

Working in silos is outdated. Nowadays, organizations encourage open space culture. Modern businesses rely more on mobile devices and other gadgets that keep them updated 24/7. With an ERP solution, you can view, edit and manage every document, report, sales order, purchase order, account receivables, and other files on the same platform. Employees can interact with each other with its inbuilt chat tool and know the status of inventory, quality of goods, orders, allocated resources, and more. This creates a collaborative workplace and eliminates communication glitches.

4. Warehouse management and optimization

Automotive manufacturing is a complicated and lengthy process that requires a range of Bill of Materials (BoMs) and multiple processes to produce finished products. Warehouse management is a crucial function offered by many ERP solutions to facilitate the execution of warehouse transfers, generate reports, tasks, and transactions on the plant floor, manage inbound and outbound transfers, bin management, label printing, barcode scanning, and a lot more. The SKU and BOM management processes are centralized in ERP, which makes them more efficient to manage.

5. Data security and compliance

Whether you are into the manufacturing of electrical or brake parts, engine parts, drive transmissions and steering parts, or other automotive components, it is essential to align and design every component in a way that meets regulatory compliance. Industry regulation will influence the manufacturer in a few ways. How the products are handled, how they are shipped and distributed, and who they are shipped and distributed to. ERP lets you address this by offering quality management functions that facilitate compliance with quality standards and manufacturing regulations to adhere to the quality parameters.

If you invest in a reliable ERP solution for the auto industry, every piece of information will be confined to the concerned person or team. It ensures that the documents you create are restricted and coded. With so many departments in the automotive component manufacturing industry, you need to have a secured data repository to ensure security and avoid attacks like ransomware.

With OptiProERP, all your hassles are solved! It is a comprehensive manufacturing ERP software that offers the tactical business functionality and modules required by the modern auto-component manufacturer. If you want to know more about how it can benefit your organization, feel free to contact us at or visit