Industry Overview
The Automotive industry includes companies that manufacture and/or distribute original products, aftermarket automotive components and/or accessories. The industry’s information requirements are driven by the demands of large automotive manufacturing companies. Lean manufacturing helps the supplier focus on improving quality and reducing costs.
Many automotive suppliers are considered make-to-order manufacturing companies, who engage in the following activities:
- Receive request for quotations (RFQs) from Tier 1 or Tier 2 ERP companies in the industry
- Design and estimate new products
- Submit estimates and proposals
- Receive order awards and blanket orders that forecast releases from the customer
Electronic Data Interchange (EDI) and release accounting are important features to have in an automotive ERP solution.
Critical Requirements of Automotive ERP Software
Every component of the automotive manufacturing process requires high quality traceability. This in turn calls for an automotive ERP software that can provide complete process visibility so your company can meet industry standards like the Materials Management Operations Guideline/Logistics Evaluation (MMOG/LE), in addition to end-product and regulatory requirements, all while avoiding recalls and delays.
Quality systems are critical for meeting the specifications of the OEMs.
Automotive equipment manufacturers should evaluate the following critical automotive ERP requirements:
- Customer Relationship Management (CRM Software)
- Quoting and Estimating
- Order Processing with Electronic Data Interchange (EDI) & Release Accounting Product Configurator
- Product Data Management (PDM)
- Product Lifecycle Management Software (PLM)
- Document Management
- Engineering Change Management
- Forecasting/Demand Planning
- Quality/Finite Scheduling
- Lean Manufacturing
- Repetitive Manufacturing
- Project Accounting (R&D)
