The automotive industry is a dynamic market of outstanding categories. It generates 3% of GDP globally. It establishes more requirements for its manufacturers – both in terms of the quality, logistics, and delivery times. Thus, it needs to have a geared system to manage all critical business processes.
That is why companies worldwide have decided to include ERP software in the automobile industry. Here are 5 reasons ERP systems are crucial to the automotive industry.
5 Reasons ERP Systems Are Crucial to Automotive Industry
ERPs are easily adapted to the automotive industry. It allows us to manage all critical processes with the most incredible efficiency. And, so it improves the final results of the business.
Among other aspects, this software offers us to:
Have real-time data
The real-time data allows us to make quick decisions about:
- customer management
- resources
- employees, and
- manufacturing status.
In this way, it guarantees the improvement of integrated production management.
For this, it is essential to establish bridges between parts suppliers and customer companies. Only then will you be able to achieve an effective exchange of information.
As a result, you can make the appropriate decisions so that the products have the right level of quality. And also, it will make sure the on-time delivery complies with the calendars previously established.
Help manage the highest quality standards imposed by car manufacturers.
When an automotive ERP meets the demands of the industry, it becomes the differentiating factor. This difference guarantees to improve the current position it has in the market.
And, in turn, becomes one of the best investments that achieve an improvement in the use of resources. As a result, they are reflected in its products’ quality and favorable returns on investment.
Optimize all the resources of the automotive industry.
An ERP addresses the specific needs of manufacturing. Thus it is an essential tool for controlling your supply chain and processing all tasks on the shop floor. Similarly, these software solutions allow each task to be assigned to the right person to improve their performance.
Automation of processes in the company
Notably, ERP can automate Periodic or repetitive tasks (reports, follow-ups, communications, complaints, etc.). As a result, it allows reducing the dedication of resources to a minimum and focusing on the most productive ones.
This increased efficiency leads to reducing errors and the reduction of tasks.
Cost reduction
As we mentioned in the previous point, it reduces the number of tasks and the costs of performing them. It also contributes to the reduction of errors and reduces duplicate tasks. Likewise, it helps achieve efficiency. Thus, the company becomes more reasonable concerning its competition.
How Does An ERP Work?
The principle of an ERP is to centralize the company’s database. This means entering or modifying data in one of the modules impacts all the other modules. It can be sales, inventory, production management, etc.
Finally, it updates the whole database and applies the change to the entire company.
For example, if a salesman enters a sale on his terminal, the ERP will immediately apply this sale to
- The stock
- The sales journal
- The general ledger (accounting) and
- The account of the result.
And this, in real-time!
Conclusion
In conclusion, we can say that ERP solutions for the automotive industry are a valuable tool for companies. With the help of the software, they will be able to develop their activity with all the requirements. This is a significant point as meeting the demands of the automotive industry is not easy.
