ERP for Automotive Industry

Automotive Industry

Automotive industries depend heavily on ERP solutions not only to help with finance but also to gain 360 degree visibility, meet rigid requirements, timely deliveries and avoiding product recall. ERP systems help in streamlining the company processes and successfully solving the challenges posed in the way of business. In particular with the automotive industry, it helps track, analyze the trend, and manage the materials, labour, machine and cost associated. The ERP software also provides seamless integration to the various modules, leading to transparency in the system and way of work. While going for an ERP system companies evaluate on the basis of initial investment, the operating costs that the company will incur and time is to value ratio.

While choosing ERP for automotive industry, there are pointers to take care of beyond flexibility, scalability and business continuity. Evaluate if the below mentioned pointers are supported by the vendors.

  • Product Tracking: To be compliant with government regulations, automotive manufacturers need to keep a tab of every part of an individual product. Software solution for the automotive industry is required so as to identify and isolate the problematic part before they pass to the distribution chain.
  • Supply chain management: Automotive industries face the challenge of producing both in quantity and quality to address demand. ERP for automotive industry should be capable to track and present real time data related to manufacturing, quality and supply. Additionally, there should be a way to store this data for future.
  • Managing data electronically: Most automotive manufactures manage data electronically. The automotive ERP software should enable the manufacturers to attach, save and access files electronically. This not only saves paper, but also is fast, minimizes waste and eliminates human error.
  • Monitoring Inventory: In the case of manufacturing of automotive parts, inventory has to be carefully planned as excess inventory will be a wasteful expense. Automotive ERP software should adopt individual tracking to aid in this scenario. Additionally, the presence of materials requirements planning will help the automotive manufacture to plan for just-in- time delivery of the raw materials to be used, reduce the costs associated with inventory holding and delays due to absence of required component.
  • Integrated Financials: It is a must to have an ERP system that is integrated with all the departments aiding in seamless flow of data and aids in consolidation of all the available data so that costs involved with production, spare parts, inventory etc. are available and transparent.

For further details on ERP for Automotive Industry, SMS SAGE to 56767 or visit Sage Software Solutions Pvt Ltd at

Originally published at on July 7, 2015.

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