Top 7 ways modern ERP technologies have helped transform the auto industry

This article was published on: 5/10/21 3:13 PM

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Top 7 ways modern ERP technologies have helped transform the auto industry.

The automotive industry  is one of the world’s largest economic sectors in revenue.

Like others, the global automotive business is experiencing rapid change. Even as it braces itself for the impact of trade wars and economic slowdown in India, OEMs are rebuilding their organizational structures to create lean and efficient set-ups.They are being reshaped by several forces such as technology changes, customer expectations, and more recently with the unexpected impact of the pandemic. The vehicle is fundamentally changing from purely mechanical engineering into a software-defined connected mobility platform that needs to respond to the rapidly changing priorities of modern vehicle buyers. Companies like Tesla are creating AI integrated electric cars to reduce pollution and lessen the consumption of petroleum.


The automobile industry was one of the first industries that witnessed the power of automation and robotic processes in the last decade.While the automobile manufacturing sector was equipping itself with robotic process automation, it became critical for dealers to match the demand and balance the supply through its own automation-driven processes in sales and services. This is where the immediate need was felt for an ERP software for the automotive industry, engineered to cater to its unique needs and requirements.

Elevated Importance of an Automotive ERP Software

With the pandemic still raging across many countries and leaving a trail of havoc and destruction, the need for predictive analysis has become more essential. Although it is true that no predictive analytics engine could have foreseen the disasters of this pandemic, in order to come out of the dire state we are in, it becomes vital that businesses future-proof their operations.Predictive analytics is just one of the many advantages of deploying a cloud ERP solution for automobile sales and assembly processes.

Benefits of an automotive ERP software on Cloud.

1. Renovating Operational Processes

The world we live in has transformed immensely. Even before the pandemic, we saw distinctive changes in various business areas that altered global eco-systems such as supply chain and manufacturing. Considering the new realities, businesses operating in the automobile industry require a serious overhaul and a total revamp of processes.

Cloud ERP software solutions for the automotive industry are designed to help businesses transition through this change. They are equipped with tools to build robust processes and seamless operations. Such automotive ERP software would align processes more accurately with short-term and long-term organizational goals and drive efficiency through automation.

2. Real-time Tracking for planning and decisions

With various processes and workflows in the strategy, a robust reporting system defines the difference between sustained growth and stunted growth of an organization. An ERP software developed for the automotive industry equips you with real-time tracking tools to keep an eye on all operations. By flattening  the flow of data across all departments and consolidating it automatically, the ERP solution ensures to feel the pulse of your business,at any time from anywhere. This is the best solution for remote working.

3. Inventory Control 

Having complete control over incoming and outgoing stock will be crucial if you want to ensure your inventory is well planned and balanced as per the market demand. Not only would an automotive ERP software save costs resulting from effective resource utilization, but it would also help you overcome possible deficits in stock through its analytics tools to measure resource spending. The more control you have over inventory, the lesser are the chances of getting troubled by surprises arising due to fluctuations in market demands.Managing the warehouse with a WMS or warehouse management software is a boon to any manufacturing business.

4. Maintaining Quality and Efficiency

Quality control has become more challenging and increasingly complicated. Ensuring high quality standards takes more than standard processes and regulations. It requires insights that could help you avoid common quality-check hurdles so that the timely delivery of products could not be affected. The best automotive ERP software solutions empower businesses with in-built quality control modules. These modules could be customized, scaled and defined to suit the unique testing procedures for each unit for any department.

5. Cost Reduction

Post pandemic, it is no surprise that cost reduction has become a priority among business units, especially in the automobile sector. With companies trying their best to minimize the impact of the pandemic and managing chaos, it is imperative that all cost centers be quickly identified. Cloud ERP solutions help in auditing all business units and provide you with detailed insights regarding the ROI and expenses of all areas, helping you decide what action to take about them.A suitable ERP software helps reduce costs at all levels distinctly making your business more profitable.

6. Communication and Collaboration to deliver optimal Customer Support

ERP software solutions for the automotive industry allow you to improve internal and external communication at all levels. They are specifically designed to help your teams overcome hurdles in communication that plagued them and prevented them from sharing data securely and easily. By providing new and simplified methods to interact and share data, you would foster collaboration which would result in increased productivity.Another critically important area that would benefit from a cloud based automotive ERP software is customer support. By integrating inbuilt CRM with the ERP, you can make sure no customer query goes unanswered, no service request is unfulfilled and all customers as well as vendors are part of a systematic loop of communication.

7. Increased organization productivity

Creating a more connected and productive organization by empowering your whole business with team collaboration tools and the processing power of the cloud.

To keep pace with the shifts happening within the industry, OEMs, dealers and beyond need to ensure that their entire organization from the C-suite to the factory floor is seamlessly connected and empowered with the right tools. To enhance collaboration and maximize productivity, companies are digitally transforming the workplace with AI and intelligent automation to streamline workflows and offload repetitive tasks. They’re integrating low and no-code solutions that enable anyone to build and deploy powerful apps and focusing on new training platforms to enhance employee skills. Enterprise-wide digital solutions and mixed reality interfaces are bringing together traditionally siloed teams by unifying devices, data, relationships, and processes.

Need Inputs from ERP Experts for Your Business?

The above points provide us with a clear view of the potential of cloud ERP solutions and how invaluable they are for the automotive industry.

There is an ocean of ERP vendors in the market and navigating it may be tiresome and would require you to spend too much time on research. As the providers of the best automotive ERP software solutions in India, we at Expand sm ERP pride ourselves in guiding our customers with the right advice regarding business applications and how they would help in overcoming operational challenges.


To know more details contact us at +91 9007026542.

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