How does a strong ERP system stand out?
The automotive industry is faced with growing challenges like e-mobility, a fast-evolving market and high quality demands. Therefore, the links of the industry's complex supply chains have to remain agile. This is achieved through standardized processes, digitalization and automation with features like electronic data exchange (EDI).
A comprehensive system is required to cover all areas and automatically process their data: the Enterprise Resource Planning (ERP) system. The players in the automotive industry require a very capable ERP system to easily handle all processes and generate added value. proALPHA tells you the most essential features of an automotive ERP system:
- Integrated solution oriented toward the future
The suppliers and OEMs (manufacturers) strongly depend on each other. They have to cooperate to remain competitive. Therefore, the ERP system has to follow a comprehensive approach, connect all parties involved and meet their individual requirements. This also means that the ERP solution has to be able to connect external services. To help small and medium-sized automotive suppliers choosing an ERP system, the VDA/ITA has introduced a certification process for ERP providers. We were the first ERP provider in Germany to prove our competence and receive the official certificate.
- Intercompany cooperation with integrated EDI
Companies have to master a flood of data along the entire supply chain: contracts, releases, lot and serial numbers, shipping documents, transport data, invoices and the like. As these documents are collected from all parties involved, you have to make sure that they are managed orderly and free of errors. The ERP system creates a uniform, central data basis within the company. It's the central hub for all important business processes from all departments. The EDI software uses this data basis to forward important information to customers or suppliers. It's difficult to implement EDI processes without an ERP system that imports and exports data in a structured way.
- Swift reaction to high dynamics
The automotive industry can be unpredictable, so your release management has to be able to quickly determine and evaluate sudden and massive increases or reductions in quantity. The early warning system of an ERP system like proALPHA automatically registers changes on short notice, enabling you to react swiftly. In spite of this unpredictability, OEMs have to plan ahead and manage both production and delivery intelligently, for instance, by using RFID chips in product containers. The high dynamics are also reflected in new industry requirements like Daimler's INTO SC. ERP providers are obligated to implement the corresponding features in their ERP system as soon as possible. - Compliance with strict quality requirements
The quality requirements of the automotive industry strictly follow the highest standards. Recalls are expensive and damaging to the brand. The ERP system must ensure absolute transparency as the products and their components are subject to rigorous checks. Thorough documentation is even more crucial where safety parts are concerned. Overall, you need a smooth approval process. If an error occurs anyway, seamless traceability helps to minimize follow-up work. A comprehensive quality management (QM) system is recommended to assure the highest quality. The QM solution by Böhme & Weihs, a company of the proALPHA Group, has already been integrated into the ERP system. - Developers with great industry expertise
In order to make the best of an ERP system, it has to map the specific requirements of the industry. For this purpose, the team behind the solution should have high industry expertise and speak the language of the automotive industry. Both sides benefit from this, be it with regard to the first contact, individual consulting services or the new development for the ever-changing automotive market.
"The automotive industry demands high quality to be delivered just in time and just in sequence. This means that production and process efficiency has to be constantly improved while OEMs and their suppliers are experiencing great innovation pressure, especially with regard to the growing e-mobility," says Ralf Marchlewitz, Automotive Manager at proALPHA. "A comprehensive ERP system is so important for suppliers because it helps them to successfully deal with the fast-changing challenges."
