ERP for the automotive industry is not an innovation in supply chain management, but a basic need to operate in the sector. Some characteristics of this segment make a good ERP system essential. In short, the main ones are the need for traceability of all components and the interdependence of the chain.
After all, you must have already seen news about assembly lines being stopped due to lack of parts. In these cases, automakers often impose heavy fines on suppliers, which turns ERP into an investment that can guarantee longevity for the business.
ERP (Enterprise Resource Planning) is nothing more than a system that plans the use of resources: raw materials, equipment, processes and people. In fact, its use impacts the entire operation of the company and can increase – a lot – the efficiency.
What ERP does for the automotive industry
ERP for the automotive industry assists in regulatory aspects as it allows the traceability of components for quality control and safety in vehicles. Other important points are the optimization of the inventory and the management of delivery times, avoiding possible fines from the automakers due to shortages in the production line. Therefore, the ERP system provides data integration, bringing more security to the entire operation.
“At Vockan, we work with QAD ERP, which has full adherence to the automotive industry. No wonder, this is the segment that concentrates our largest number of customers and in which we have a lot of experience”, says Thiago Queirós, Service and Customer Experience Leader at Vockan Consulting.
Since QAD’s founding in 1979 in California, most customers have been in the automotive vertical. For a long time, the company was part of associations that study the standards of this industry, such as the American AIAG (Automotive Industry Action Group).
Currently, the global director of the automotive vertical at QAD has a seat on the AIAG board and, since the second version of the MMOG/LE, QAD has participated in its elaboration. MMOG/LE (Materials Management Operating Guideline/Logistics Evaluation) is a set of best practice recommendations and procedures for supply chain management.
In addition, in Brazil, Vockan has Sindipeças (National Union of Automotive Components Industry) and Anfavea (National Association of Motor Vehicle Manufacturers) as a source of data and consultations to keep up to date with needs and trends of the sector.
Automotive industry challenges
The logistical difficulties imposed by the Covid-19 pandemic and the war in Ukraine have caused a shortage of raw materials in the automotive industry. Due to the stoppage of the assembly lines, the need to diversify the supply chain strategy in the sector became evident. The analysis is by Vockan’s expert.
“The integration of data promoted by ERP for the automotive industry allows mapping errors throughout the process and mitigating risks. In addition, consulting for the best implementation of the system can lead to the design of new processes, which increase efficiency and maximize results”, says Queirós.
Vockan has the ERP for your company
Vockan can help your company in the following ways:
ERP implementation: for new customers who do not yet have an ERP system, we design all production line processes, list suppliers and implement a customized solution.
ERP update: we analyze the use of the tool that the company already has, whether it is an outdated version of QAD ERP or competing software, and we update all processes to the new system.
Cloud ERP: QAD’s most modern platform eliminates the need for heavy investments in data center equipment for data backup and security and allows accessing information only with a login and password.
Contact us to learn more!