The auto parts industry is as competitive as ever in today’s scenario. With new cars being launched market every other day, the demand for their servicing and requests for new tools has also seen a phenomenal rise. This trend has also seen a number of new players coming into this industry and challenging already well established original equipment manufacturers (OEMs). However, as is the case in every business, only those companies who are able to provide world class service and high quality spare parts at competitive price are thriving.
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.
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.
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 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 auto parts manufacturer .