Tag: ERP

The automotive industry works the same as any other business. Everything from local garages to car dealers know that making a customer feel welcome while getting the best service builds relationships that will last. If the dealership or the garage does not have professionalism when it comes to treating their customers, the customer will go somewhere else. One of the biggest objectives is making a personal connection with customers so they feel like they have somebody in their court when it comes to auto repair or automotive sales. One of the best ways to boost the morale of the automotive industry is to integrate an ERP system.

Enterprise Resource Planning (ERP) is a software package that integrates internal and external management data for an organization. This allows business to have information at their fingertips when problems or promotions arise. An ERP system can be used with accounting, manufacturing, customer relations, and sales. Not only does an ERP system benefit a business, this type of software can pay off for the customer as well.

Promotions are a tried and true way of generating business. Whether your dealer is offering a 0% financing deal on a specific car or your garage is offering a free oil change, this type of promotion can’t bring in business if the consumer does not know about it. Wouldn’t it be nice if you had a software program that could automatically give you a list of all of your customers from the last six months? This is essentially one feature of having an ERP system in place.

Accounting is the backbone of any business. Making sure that your books are in order and you have all of your invoices in place can give stockholders and employees confidence in the company. An ERP system will allow a flow of data between your finance department and the accounting firm that you are dealing with. If you have an in-house accountant, they will have access to all of the accounts and payments made to the company. Say that your company is planning on expanding. An ERP system will be able to list all of your fixed assets, receivables and budgeting when the time comes to apply for an expansion loan.

The human resources department in your garage or dealership keeps files on every employee in the company. An ERP system will give them an organized way of handling payroll and training issues that may arise. This software package can also give them up to the second answers for any questions regarding benefits, 401k, or diversity management within the business.

The automotive industry requires special orders and parts management for specialty products needed for repairs. An ERP system can also help with inventory of your items, order entry, supply chain planning or purchasing. Organization to the different cars that need specific parts will not only save you time in completing the job, it will also keep you in good standing with your customers.

The automotive industry is like any other industry; it needs customers and business to survive. The implementation of an ERP system into the company will allow quick execution of promotions, accounting disparities, customer information, and HR concerns. The days of a ledger and a pencil are over. Help you and your customers by using an ERP system in your garage or car dealership.

Engaging a supply chain consultancy with automotive industry expertise is recommended when companies in this sector recognize a need to streamline processes in their supply chains. Automotive supply chains are complex as they have many tiers and lots of links in the chain. Although it is widely accepted that the automotive industry is a leader in running its supply chains well it is also clear that there’s room for improvement. Deliveries can be late, products could be of poor quality, damaged or incorrect and warehousing and logistics can be bottlenecks.

Using technology

Global vehicle manufacturers are known to use more ERP and packaged software systems than some other industries and they have adopted and integrated more e-business tools. The best direct suppliers to the vehicle manufacturers (Tier 1 suppliers) also utilize similar technology focusing on supplier integration and the sharing of data up and down the supply chain. However, this level of sophistication is costly and benefits can only be realized if systems are implemented and used efficiently. This is where automotive supply chain consultants can play their part.

Supply chain challenges

Automotive industries are caught in the wave of globalization. The challenge is to maintain and enhance supply chain flexibility and customer responsiveness whilst chasing economies of scale and cost savings. Such significant changes in the entire supply chain require tight focus. The automotive industry supply chain works on a push model as opposed to a pull’ supply chain. It is a mass production industry pushing cars out to be sold but the system is driven by the rate at which dealers order new vehicles. The consumers need for choice is changing the landscape and manufacturers must become more responsive to customers needs or lose income.
Opportunities for improvement

An external intervention can highlight areas of potential cost savings and efficiencies in the automotive industry supply chain.

Collaborating on product design with suppliers and outsourced designers to create continuous improvement can provide cost savings.
Operational costs can be reduced through leveraging an ERP system that gives full visibility into transactions across the entire enterprise
Taking advantage of e-procurement solutions and electronic data interchange (EDI) will streamline financial and business transactions.
Integrating with your automotive supply chain partners using reliable, real-time information can improve performance and flexibility.
Successful decisions are supported by analysis and reliable and relevant information that leaves no room for misunderstanding. Quality data and its accuracy and accessibility are enablers.

Companies in the automotive industry want to improve the quality of their products, lower their costs and speed up the time to market. Meeting the challenges of todays vehicle marketplace can be accelerated by using a supply chain consultantcy for the automotive industry.