Challenges faced by automotive manufacturers
Let’s analyse some of the challenges:
Reduction in cost
In order to track many of the processes, from sales, repairs and customer support, automotive manufacturers tend to use different systems. By implementing and ERP, this consolidates and integrates disparate systems that exist in your business.
Although on the surface it may not show, by connecting your departments, such as sales, purchasing, finance, production and warehousing through an ERP software, it significantly reduces expenses, centralises information and makes your business processes more effective.
You also don’t need to train different users on different systems. It saves time and makes everything smoother.
Using the right ERP software, such as Manu Online, your departments will be able to generate valuable reports regarding expense statements, inventory level status, sales reports, purchase reports, income reports and a whole lot more.
By doing this it will bring agility into your automotive business. Generating and accessing this data it empowers business owners to make vital decisions based on the data and respond quickly to crucial situations.
Manufacturers in the automotive industry rely heavily on firmly fixed inventory and production processes. By deploying an ERP software such as Manu Online with a comprehensive inventory management module can help simplify these processes mentioned and remove issues of carrying costs. Carrying costs are the costs incurred because of excessive stocks.
Furthermore, understocking can lead to a termination of production, therefore an ERP software can help ensure there is always adequate stock in hand.
Overall, as production is affected this also affect your lead times to deliver the product to the customers which leads to low customer satisfaction and can bring down reputation.
Another interesting feature for automotive manufactures is that ERP software can make them aware of inventory levels. For instance, if any items go below a certain level, they can then be alerted and order enough to replenish those items.
This means that the raw material will always be in balance with production requirements.
While quality control is an important element in any industry, in the automotive industry is predominant as after all the safety of the staff involved can be affected.
ERP software have quality control features in place that enable the operations to ensure quality from start to finish, all the way to the delivery.
For instance, components are tracked in real-time from the initial stage of manufacturing or assembly right to the finishing and delivery.
This allows business owners to gain control and visibility over the process which will lead to opportunities to solve problems and remediation in advance. It also eliminates products that cannot be rectified so that only high-quality finished products can be maintained.
Assemble to order, final product is configured from the standard sub-assembly. For example, the ERP will be able to help tracking and action the following.
Production replenishes buffer with components and subassemblies and then the order is assembled based on the customer demands, i.e. if a standard feature of a car needs to be upgraded to a specific one.