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10May

5 Benefits of ERP in Automobile Components Manufacturing

The automotive industry is one of the largest and versatile sectors around the globe and is evolving continually with the 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 which can manage the organizational operations on a single platform.

Automotive component manufacturers deal with manufacturing an array of products, namely chisel, piston engine valves, control valves, propelling nozzle and other thousands of components used to assemble a vehicle. A single car has approx. 30,000 parts assembled in it – from the largest component to the smallest screw. Manufacturing of components parts is always dependent on the category of finished products the parts go into. Thus, it is extremely difficult for the automotive component manufacturers to manage multiple vendors, production process, and 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 also witnessing intimidation. Automotive component manufacturers are looking for innovative software solutions to help them bring together every business process so that teams work efficiently and with dedication. It is also crucial for them to abide the stringent policies and regulations laid by the regulatory groups.

Automotive Component Manufacturers Association of India (ACMA) states that Indian auto-components industry is likely to have a USD 100 billion turnover by 2020 with USD 80 – 100 billion export by 2026. 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 ERP solution can benefit automobile component manufacturers –

  1. Comprehensive traceability

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

As electrical and communication component has become an integral part of every vehicle, quality and reliability should be on the topmost priority. Auto components manufacturers should seamlessly track which a lot of products has been procured, where it went for the production process, who is handling it and where will it 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.

  1. Supply Chain is managed with accuracy

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

–    Material Requirement Planning

–    Master Production Schedule

–    RCCP and Pegging

–    Simulation & Actual Run

–    Time Fence

–    Lead Time Calculation for FG

–    Global / Individual Company Planning

  1. Electronic document management and collaboration

Working in silos is quite 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, crystal 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 the communication glitches.

  1. Warehouse management and optimization

Automotive manufacturing, being a complicated and lengthy process 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 that facilitates execution of warehouse transfers, generating of reports, tasks, and transactions on the plant floor, managing 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.

  1. Data security and compliance

Whether you are into the manufacturing of electrical or brake parts, engine parts, drive transmission and steering parts or other automotive components, it is essential to align and design every component in such a way that it meets the 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. For example, in India, there is the apex body – Automotive Component Manufacturers Association of India (ACMA) which represents the interest of Indian Auto component industry. Comprising 780 manufacturers, it aims to oversee technology enhancement, quality elevation, the gathering of information which contributes extensively to the industry’s evolution. For manufacturers, it is crucial to meet the stringent rules as offered by such regulatory bodies. 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 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. As there are so many departments in an 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 suite which offers the tactical business functionality and modules required by the modern auto-component manufacturer. If you want to know more about how can it benefit your organization, feel free to contact us at optiproinfo@optiproerp.com or visit https://www.optiproerp.com/in/.