So, how do these Companies create an edge over others?

Cost plays an important role in this case. The spare part manufacturing relies on automated lines and is in general capital intensive in nature. Therefore, bringing in the best and latest of technologies to aid production can ensure better economy in the long run. With an increase in production, the cost per spare goes down creating more value and margins. Off the floor too, technology can help improve the bottom line and increase efficiency of resources.

Keeping the above perspective in mind Enterprise Resource Planning (ERP) systems is one of the best choices an automobile parts manufacturing company can make. Enterprise Resource Planning systems not only help with accounting and recording but also facilitate monitoring of production lines.

Better Planning and Execution

The concept of blind production is redundant now. Production of automobile parts against demand orders that are fed in the system is the way to go. This not only minimises storage and warehousing cost but also helps in optimizing batch sizes. Meeting strict timelines and ensuring highest quality is easier because production planning is done in advance. Besides real time data are uploaded onto the ERP system and all production lines are monitored closely. The Enterprise Resource Planning system also helps in ensuring that the raw materials and relevant tools are always in stock and are readily available at the time of production.

Maintenance and low breakdown rate is critical

Imagine an unfortunate scenario where a machine fails amidst manufacturing a batch that has to be delivered today! Well, with an ERP in place, the chances of this situation happening are pretty slim. First of all, scheduling regular maintenance without affecting production and delivery timelines is now possible, because with ERP you have a demand based production system in place. Also, isolating the part of machinery that has failed is easy on a real time ERP system and can be attended to quite quickly.

Records and Document Management

Most of the companies strive to move towards a paperless environment and why not? Storage and maintenance of documents is a costly affair and in most cases an external [read expensive] agency is employed to take care of the heavy paper documentation. Besides, there is always a chance of misplacing documents. Right from factory production to in-store accounting to recording sales and receipts, ERP ensures traceability, accessibility and safety of your documents. The stringent security measures in form of password protection, authorisations, firewall etc. create a reliable environment for all your transactions.

Ready Analysis and Financial Control

Waiting for days to get the financial results and their analysis is a thing of past. These days real time ERPs get most of the data fed and analysed almost instantly. There are no surprises (Read shock!) once the consolidation and finalisation of accounts is done. In fact analysing the data regularly can also pinpoint the process or batch which needs attention and will save a lot of precious funds for the company.