It is difficult to imagine a modern world without automobiles. Cars and trucks are used throughout the world, and are the most popular mode of transportation in developing countries. It is therefore without question that the automotive industry plays a significant role in economic development worldwide. And having a manufacturing ERP solution is integral for the industry to succeed.
Challenges Facing the Automotive Industry
The automotive industry is facing a significant number of challenges. From electric automobiles to self-driving technology, the demands of the consumer are changing. The automotive industry is evolving through the use of Fourth Industrial Revolution technologies.
The survival of automotive manufacturers and suppliers hinges on their ability to adapt to this new environment. They can accomplish this by putting tools in place that will provide more relevant, reliable and diversified data.
ERP Systems are Crucial to the Automotive Industry
Businesses in the automotive industry have to manage some of the most complex manufacturing processes. They therefore have specific and unique needs. An ERP solution that can address these needs will prove real value and the benefits will significantly outweigh the cost over the long term.
Benefits of Using an Automotive ERP Solution
- Cost Reduction
Implementing an ERP system in the automotive industry can save you money in the long run. An ERP system combines all your business functions, including inventory, supply chain management, finance, etc., into one single interface. Having these functions united can improve cost efficiency and optimize business processes. Another benefit is that your employee training costs will be reduced, as your employees only have one software system to learn.
- Optimized Inventory Management
Manufacturers in the automotive industry rely heavily on well organized inventory and production processes. An ERP system allows for a simplified, systematic inventory process which can help you avoid holding excess inventory and incurring unnecessary costs.
- Efficient Production Management
An ERP system can help your business operations become leaner and more efficient by allowing your business to coordinate manufacturing activities seamlessly. An ERP system can also provide accurate data which can be used to make informed decisions. This ensures that each resource is maximized effectively to reduce wasted time and enhance profitability.
- Improved Lot Tracking
An automotive ERP system allows manufacturers to identify the origin of every single component that was used in the production process, which departments handled it, and which customer purchased the final product.
- Simplified Compliance with Rules and Regulations
An ERP designed for the automotive industry makes regulatory compliance so much easier. An automotive ERP system provides the ability to generate and manage reports to submit to the relevant regulatory bodies.
- Importance of Data Integration
An ERP solution can offer significant value to automotive businesses with regards to customer support and management. You can integrate your ERP data with your customer relationship management (CRM) software. This allows you to manage leads captured in your sales funnel, turn leads into sales, retain existing customers, communicate with your customers through each stage of their purchase process, and so much more. Commercient SYNC, the #1 data integration platform for sales, can integrate your ERP data with your CRM data with a one-way or two-way SYNC. Read how Commercient helped Dynojet Research, a leading manufacturer of performance enhancement products for motorized vehicles, with their integration needs.
There are a number of reputable software vendors that recognize the unique needs of the automotive industry, and offer a variety of ERP solutions.
Examples of Automotive ERP Solutions
- Microsoft Dynamics
The ability of a company to sustain growth and keep improving in any industry is of the utmost importance to its survival. Take your automotive business to the next level with integrated technology from an ERP solution that can meet your specific industry needs and challenges. For information, please contact our partner Edgeware.
If you’d like to learn how Commercient can help you integrate your ERP and CRM, allowing you a complete picture of sales and marketing, please contact us today! Click this video to watch how SYNC works.
About the Author
Anna Kinnear is a Sage Financials Consultant at Edgeware, and holds a Bachelor’s Degree in Accounting Science from the University of South Africa. She has always had a passion for reading and writing.