As we discussed in a previous article, the automotive industry is in the midst of a transformative period caused by macroeconomic forces and rapid technological change. To meet current and future business needs, automotive suppliers and original equipment manufacturers (OEMs) rely on robust ERP systems to help them run their operations.
At abas ERP, we've worked with dozens of midsize tier two automotive suppliers, helping them improve efficiency by offering a flexible ERP system tailored specifically to their ever-changing requirements. A tier two supplier provides parts to tier one suppliers, which in turn supply those parts to OEMs. Most tier two suppliers, however, are not exclusively in the business of selling to other vendors - they may also work directly with OEMs.
This article will explain some of the key reasons why midsized automotive suppliers choose abas ERP and briefly touch on some of the product features that our customers in this industry find most desirable.
Global implementation method, complete solutions and stability
Ralf Marchlewitz, manager of automotive and supply at abas AG, explained that one of the biggest reasons why automotive companies choose abas ERP is that there is a proven global implementation method that ensures the system can be up and running, in time, on budget, and according to the business' requirements. Having perfected this method over decades of doing implementations for companies throughout various manufacturing sectors, we've honed our process to the point where we can implement abas ERP quickly while still being flexible enough to customize the system for individual customer needs.
More than that, however, abas ERP implementation teams have one quality that many bigger name vendors are lacking: experience with specific industries and processes. Many of our team members have significant experience working in the industries we serve. We know how the supply chain for an automotive company differs from one in electronics. The financial reporting and regulatory requirements for an automotive supplier are different from those in custom manufacturing, and that's something we bring into every individual implementation.
That kind of experience and knowledge is extremely valuable for our customers as we work to implement their systems. Deploying an ERP system isn't about installing software, it's about designing a system that underpins a business' end-to-end operation.
Our customers aren't just looking for software, they want solutions to their problems.
Finally, Marchlewitz noted the the international orientation of abas allows us to provide a higher level of service than many of our competitors. Rather than being a collection of mostly separate vendors who happen to sell the same software, abas is built on a global network of partners that work together to meet our global customers' needs. If we're working with an automotive supplier headquartered in Europe that wants to move production to China, our European teams and Chinese teams will work together to build out a global ERP system that meets local and companywide requirements.
What abas ERP product features are most useful to automotive suppliers?
Most of abas ERP's basic features, such as lot control, Web-based supplier portals, electronic data interchange (EDI) and financial modules are a necessity for auto suppliers, and the basic platform comes with those already built in. But beyond these essentials, abas ERP also offers modules specifically geared toward auto suppliers.
Our packaging and shipping management module is extremely popular among auto suppliers. Packaging must be aligned with both production (in preparing for finished goods to be packaged quickly and correctly) and with logistics (handling and tracking packages through distribution channels). Packaging and shipping are critical when maintaining quality and on-time delivery of customer orders. Many auto suppliers and manufacturers are bringing these processes in-house to ensure they're up to the high standards needed to be competitive in this industry; abas ERP makes this much easier.
Additionally, abas ERP's automotive industry-specific mobile application has proven itself to be extremely useful for our customers in the auto industry. This app allows for even greater insight into inventory levels, tracking production and monitoring requests. Mobility makes it possible for businesses to gain higher visibility into the value chain, and this sort of agility and insight will be critical for suppliers and OEMs alike to control costs and streamline processes.
If you're interested in more information, you can download our free Whitepaper: ERP Selection for Midmarket Automotive Companies, to help you pick the perfect ERP system.