ERP the automotive industry is the system overall management for business, manufacture, assemble and supply automotive components management throughout from the structure products, purchase of components to manufacturing and finance. Centralized system to handle the peculiarities as many BOMBS variation, track components under lot, serial number as well as control cost, according to each car line. The data is contact information on a unified platform to help businesses control operated effectively, the correct decision in the highly competitive environment.
The management of the software discrete cause data to purchase, warehouse, manufacturing, accounting without contact information. Business difficult to control inventory costs and traceability when incurred incident. This increases the cost, potential risks of disruptions to production.
The same Lac Viet Computing learn in detail the concept of erp the automotive industry, the challenges common in the operation, as well as the role of ERP in the standardization process, the optimal cost-to enhance the quality of governance in the context of competition, increasingly demanding.
1. Overview of erp automotive industry
1.1. ERP the automotive industry is what?
ERP the automotive industry is management system overall is designed specifically for the business activities in the field of manufacturing, assembly and supply of components and cars. Instead of just management in the financial – inventory – sales as the ERP, shared, erp automotive industry, focusing on solving the problem at the core of operated production industrial complex: from product structure, multiple levels of management components according to each car to traceability, as well as warranty and after-sales.
Below is the comparison table clearly demonstrates the difference at the core of ERP automobile industry compared to the ERP used for many industries, focusing on the level going into the actual operating:
| Aspect | ERP, automotive | ERP shared |
| The level of intensive operation | Go deep into the peculiarities of production – assembly automotive | Management at the level of general, fits many models produced |
| Management BOMBS | BOMBS more levels, more variations according to each car line, version, configuration; change frequently according to the market | BOMBS simple, less acute, less variation |
| Product management | Management according to each specific vehicle | Manage batch or code number |
| Product tracking | Each car mount chassis number, engine number; the full link with the entire components used | Trace at the level of plot or stage |
| Track product life cycle | Tracking throughout the life cycle: purchasing components → assembly → factory → sales → maintenance → recall when the problem | Mainly stop in production, sales |
| Quality control | Meet the high standards of quality, safety and traceability strict of the automotive industry | Apply common standards |
1.2. Why business the automotive industry need ERP specialist?
The automotive industry has high levels of complexity, from supply chain, manufacturing – assembly to the required quality and access. In that context, ERP specialized becomes necessary foundation for enterprise control to operate effectively.
- Supply chain long, multi-vendor components: Business must manage thousands of parts from many levels house supply different requires the ability to coordinate, track, tightly controlled in real-time.
- Manufacturing process – assembly complex, require high accuracy: assembly operations, including multi-stage continuous only a minor deviations of planning or materials, can also directly affect schedule, cost.
- Strict requirements on traceability – quality – warranty: Every car, every component must be traceability throughout the lifecycle. Service, quality control, warranty as well as dealing with withdrawal when the arising incident.
In that context, management by Excel or other software discrete no longer fit. ERP the automotive industry became the foundation required to help businesses control costs, inventory, limiting disruptions to production in order to meet stringent requirements in terms of quality, traceability and warranty. Choosing the right ERP specialized right from the start will determine the operational efficiency, competitiveness in the long term.
2. Business, industry, assembly of automotive components is facing difficulties?
In fact deployed, most of the problem operate the automotive industry lies not in technology but in the lack of management systems deep enough to control components, production and aftersales. This is the reason increasingly more interested in business, learn the ERP solution, automotive specialist.
2.1. Pressure management cost & inventory components
Automotive components is characterized by many categories, high-value and spin inventory uneven. There are components very quick turnaround according to the production plan, but also the components of great value, used only for some versions of certain car. If not tightly controlled, the inventory is very easy to fall into two extremes: excess or deficiency.
Many businesses assembling automotive components currently still manage inventory in Excel or other software discrete. The result is:
- Data inventory between warehouses, planning and accounting is not homogeneous
- Purchase decision mainly based on experience, not based on consumption data, the actual
- Excess inventory as the cost of capital, while still having the risk of lack of components for production
This is one of the “knots” that business is hard to control the cost, whether revenue is still increasing.
2.2. Difficulty in controlling production – assembly
Production and assembly of cars includes many stages and many production lines, as well as the dependence between the parts. Only one stitch is slow progress or deviations norms can also affect the entire production plan.
In fact, many business problems:
- Production plan set up but not properly reflect the actual capacity of the machinery
- Difficult to follow the progress of each stage, each makes in real time
- No measurement is exact productivity, time stop machine, efficient use of resources.
When costs rise, or order delay, administrators often “know issues”, but not enough data to determine root causes, led to the decision situation, unsustainable. This is the great weakness if the business wants to scale up or become more deeply involved in the supply chain automotive.
2.3. Requirements traceability warranty & after-sales
Traceability, warranty, not just the technical issues, which is a vital element of prestige, as well as legal risks in the automotive industry. When is an error from the market, enterprises are forced to rapidly identify exactly:
- Components bugs belonging to the lot the provider does
- Has been mounting on the car
- Scope of influence practice to localize recovery
However, if the data components, production, sale and warranty are not connected on a single system, the access to often take a lot of time, not even full. This increase:
- Legal risks
- Warranty costs, recovery
- Damage to brand reputation in the long term
The pressure this causes many businesses to seriously consider the ERP solution, automotive specialist, instead of continuing to expand the system management discrete as before.
3. ERP, automotive solving for business?
From the perspective of operation management, erp automotive industry is not merely software “instead of Excel” which was instrumental in re-structure the way business operate. Core values of ERP lies in the ability to control the complex in order to support decision making based on data, instead of experience discrete.
3.1. Standardized & digitize entire operation process
One of the common problems in the business, automotive assembly as the data is divided according to departments. Purchases have a data warehouse, there are a number of other materials, manufacturing, and accounting back in its own way. When data is not homogeneous, the administration very difficult to take the correct decision.
ERP, automotive solve this problem by using the data from purchase – warehouse – production – sales – accounting on a unified platform. Data is recorded once, at the source of the automatic rotation to the related parts.
Actual value the business receives is not located in “technology,” which in result:
- Significantly reduce data entry manually, saving time for the operator
- To limit errors due to data entry, duplicate or processing data
- Increase transparency, help leaders see the same “picture data”
This is important background to the organizations and enterprises are to find out information about ERP moved from administration to “run under the mission” to manage the system.
3.2. Optimal inventory & supply chain components
Inventory components is always the problem “headache” of business in the automotive industry. Amateur inventory, then bury capital, lack of inventory, then interrupted production. The problem does not lie in the purchase more or less, which is located in the right – hold true – use the right time.
ERP the automotive industry, allowing business:
- Inventory management details in batches, serial number, term of use
- Set inventory levels, minimum – maximum for each type of components
- Application of the calculation methods like EOQ (Economic Order Quantity – the amount of economic order) to the proposed purchase plan reasonable
More importantly, the system does not propose a purchase according to the sense, which is based on production needs, practice, plan, order, as well as consumption history.
With the business, automotive assembly, this is the benefits are clear: just reduce the cost of capital, just limit the risk of interrupting the supply chain components.
3.3. Control of production & price automotive
In the automotive industry, the price of products are not only influenced by raw materials, but also by productivity makes time stop machine, semi-finished products uncompleted in the effective use of resources. If not, control the elements, this business is very difficult to compete on cost.
ERP, automotive, business support:
- Production planning flexibility in both directions forward planning (planning prose), backward planning (planning backwards from orders)
- Track WIP (Work In Progress – unfinished products), semi-finished products in real time
- Detailed analysis price according to each car line, each stage, instead of just know “the price of the end states”
Core values of ERP automotive industry lies in its ability to clarify the cause of the cost increase, instead of just reflecting the total figure. The administrator can determine the cost incurred due to raw materials, productivity makes or machine downtime. So ERP automotive industry is considered the administration tool is cost effective, not only is accounting software or inventory management.
4. The analysis ERP important in the automotive industry
In the automotive industry, ERP should not be seen as a collection of “modules” technique, discrete, which is the system of manure management systems fastened with each math operation core. The value of ERP is only promoted when the subsystem is connected, operated on a foundation of data consistency.
4.1. ERP management, purchasing & supplier components
For business, automotive assembly, purchase, not merely place the components, with low prices, which is to ensure the right quality, right time and right cost overall. A decision of making a wrong purchase can last as excess inventory or disruption of the entire production line.
The ERP purchase management help enterprises control throughout the lifecycle of purchase: from purchase requests, quotations, orders, import components to enter the warehouse and payment. The greatest value lies in the direct link purchase with production planning, inventory fact, instead of decisions based on feelings.
Besides, the system allows:
- Quality control input according to each batch components
- Track the history of delivery, the defect rate, the level of compliance of each vendor
- Evaluate the effectiveness provider based on real data
4.2. ERP inventory management & traceability
Warehouse automotive components not only a place to “store”, which is the central risk control cost and quality. With many peculiarities components, high-value, long life cycle traceability requirements, strict business can't manage inventory in simple way.
ERP automotive sector allows for inventory management in several levels: warehouse total – stock details – location – lot – serial number. This helps businesses:
- Grasp the correct inventory for each type of components, each status
- Fast access source components when technical errors
- Localize the exact scope of recall or warranty, avoid unnecessary expansions
With ERP automotive industry, traceability is no longer the work takes time, which becomes power risk management initiative.
4.3. ERP production management – automotive assembly
Automotive production is a continuous process, multiple stages, multiple passes closely dependent on the component input. If not controlled well, business is very easy to fall into the state plan “on paper” but in fact that slow progress and team expenses.
The ERP production management helps enterprises:
- Management BOMBS many levels, consistent with multiple lines of cars and different configurations
- Track the progress of each stage, each assembly line in real time
- Record time stop machine reviews, equipment efficiency (OEE) to improve productivity
The greatest value of this module is not located in the “monitor,” which in the ability to see the cause waste, as well as points of congestion in production.
4.4. ERP cost management & financial accounting
In the automotive industry, the profit margin is increasingly narrow, causing the price control becomes vital. However, many businesses only know the price of “after you've done”, without knowing what factor are increased cost.
ERP automotive industry allows:
- Calculate the price according to the reality, and accounting
- Cost analysis according to each car line, each stage, each cost center
- Contact information production data with accounting to ensure consistency
5. SureERP – ERP Solution automotive industry, suitable for business, Vietnam
In fact, not ERP would also fit automotive business in Vietnam. Many systems cost, but difficult to implement due to not close the model commissioning, personnel capacity, as well as accounting. So, the ERP solution, the automotive industry consistent practices in Vietnam is increasingly of interest.
5.1. Overview of ERP software SureERP of Vietnam
SureERP is ERP solution total company shares Information included with the application, have been deployed for many enterprises to manufacture – distribution in Vietnam, in which the business activity according to the model of industrial production complex.
Unlike many ERP mature design according to the global standard, SureERP is built with peculiar operation management of the business in Vietnam. From organizational models to the mode of accounting reports. The developed system in a flexible way, allowing deployment in stages to gradually expand in scale, the level of management of the business.
With the business of the automotive industry, this is a very important factor, because ERP is not just “fully functional”, which must be easy to apply, easy to operate, effectively creating realistic in the short – medium term.
5.2. SureERP what support for business, automotive industry?
SureERP focus on addressing directly the problem that core business assembly, manufacturing automotive components are encountered, such as:
- Purchase order management & inventory components detailed in batches – serial number: to help businesses control components, high-value, response to request access to the event or warranty. The data is concentrated contact information on a unified platform, instead of checking manually.
- Production management & cost associated with the actual operation: SureERP allows tracking of production, unfinished products and the cost, according to each stage. Thanks to that, the administration not only know the price of the end states, but also identify early factors to the increased cost to make timely adjustments.
- Financial management – accounting standard VAS: in accordance with compliance requirements in Vietnam. This is the key difference, compared with many ERP foreign capital usually need to customized to meet the accounting regime in the country, which increases the cost and risk of deployment.
- Reporting systems administrator, multi-dimensional: help leaders track production, inventory, cost effective operation near real-time. This is important background to business the automotive industry lifting capacity decisions based on data.
5.3. The advantage of SureERP when deployed for the automotive industry
Compared with many ERP solutions automotive industry in the market, SureERP there are clear advantages from the perspective of commissioning:
- In accordance with the actual business Vietnam: from the scale, model management to legal and accounting help business reduce the risk of deployment.
- Highly customizable according to specific automotive industry: flexible adjustment according to the model assembly, component manufacturing, multiple stages, multiple product lines.
- Our team of consultants – deploy rich experience in water: business-not only at the installation stage, but in the process of standardizing processes and long-term operation.
For business, automotive, ERP't simply buy the software that is upgraded capacity management. Choosing the right ERP right from the start decided to investment efficiency, and scalability. In the context of control requirements of increasingly stringent, Lac Viet SureERP is the right solution to help enterprises in Vietnam, standardized operation and construction management platform sustainable. Find out details about the solution at: https://erp.lacviet.vn/
ERP the automotive industry not only is the management tool that is platform that helps businesses control the complexity of the supply chain and production. When the data is continuous throughout, businesses can correct decisions, reduce risks and optimize costs. Invest in the right erp system in the automotive industry so become step strategy to enhance the capacity of operating, developing sustainable long term.
