Why is ERP Software Important for Automotive Industry?
During the initial days of pandemic lockdowns, the automotive industry was hard hit when the global supply chains came to halt, offices were temporarily closed, people stayed home and used fewer vehicles. This, however, has accelerated the progress of digitalization in the sector.
Amongst all, enterprise resource planning software ranks highest as the most comprehensive and efficient operation management solution. After a successful implementation, ERP software provides department-wide data integration. With it, you no more need different systems for managing different processes.
You are able to gather a wealth of real-time information about everything related to sales, leasing, and servicing of vehicles on a centralized platform. Use these extensive details to not only monitor overall process effectiveness and analyze business productivity but also to solve all other business issues. Thus, no time is lost in data collection from dissimilar systems and generating reports from them while you have more control over your business operations.
With ERP for automotive industry, you are able to save huge on operating costs, better understand the optimum conditions for getting more customers, and reduce wastage of resources. Moreover, the ability to access and analyze business data would enable you to make informed decisions for improving sales initiatives and delivering serviced vehicles on time.
The ERP software solution thus enhances the capabilities of automotive dealers to plan and execute sales and leasing processes with minimal manual intervention. With no more lost inquiries or missed orders, you are able to provide enhanced customer experiences.
According to a Gartner’s report, “By 2022, cloud ERP should be the preferred option for more than 75% of midsize companies and for more than 40% of large enterprises aiming to transform their monolithic legacy ERP estate.”
What Features to Look for in an Automotive ERP System?
Whether you are an automotive dealer or a garage owner, the speed and efficiency of your business processes are always part of your imperative.
Though ERP solutions are loaded with a broad set of tools that are capable of improving your business operations. But at the same time, not every functionality is essential for your business, making sense to know which features would yield you benefits.
Here are some of the key features to consider:
Inventory control
With multiple upgrades available in automobiles, it is expected that dealers have all the latest vehicle models in their showrooms and workshops have an ample supply of spare parts needed for servicing. The increased variation in car models may make it difficult for automotive businesses to keep track of them and maintain demand and supply balance.
An automotive ERP software with a powerful inventory management system helps you to keep records of customer demands and accordingly maintain appropriate stock levels. This enables you to attain smoother delivery of orders and on-time services.
Reporting tools and analytics
All things don’t always go as planned, especially when you have dependencies on suppliers and vendors. You may find challenges in dealing with spare part shortages and unsold vehicles.
Fortunately, when you have reporting and data analytics tools in your ERP system, you would have tons of information stored to help you overcome this issue. Armed with information, you can predict changes and adapt them early. Thus, you can stock inventories with the right mix of spare parts or vehicle types to maximize your profits.
Service scheduling tracker
Without an efficient system, maintaining service requests for multiple vehicles entering your workshop is difficult and technicians are often overloaded at the last minute. This not only affects your teams’ harmony but also results in delays that lead to unsatisfactory customer experience.
ERP software with service scheduling features automates the process and keeps track of work orders. When service requests are properly tracked, your resource allocation becomes easier. This helps in scheduling vehicle maintenance or repair according to the convenience of customers and the availability of technicians; thus, leaving no room for the last-minute hassle and enables you to deliver consistent customer experiences.
Sales and repair order billing
Irrespective of the type of automotive business you have, speedy billing is always appreciated by customers, which ultimately generates more profit.
For this, you need an integrated POS system. The tool not just allows your customers to pay through any means they want to, but also keeps records of each of these payments, tracks cash flow and expenses, and all other monitory transactions. All these can be done from a single dashboard. It makes managing the whole payment process effortless and error-free while making transactions highly secure.
Integrated CRM, HCM and accounting tools
Every business has fully-functioning sales, marketing, human resource management, and finance teams as they need to manage employees, keep track of financials, store customer transaction history, and other critical business areas. When this information is stored in multiple, department-specific systems, compiling and sharing them become difficult.
By having a fully integrated ERP system, every business information is recorded on a centralized platform so that it can be accessed as needed, by all departments of our automotive business. This improves business-wide information visibility, increases employee engagement, enhances customer service, and enables your back office to function more efficiently.
Mobile device compatibility
Gone are the days when business operations can be managed only from within the office compound, using desktops sitting on the workshop bench. With today’s cloud ERP software, business operation management is no more restricted to location. It can be done on the go.
When your ERP system is accessible on mobile, it increases the efficiency and compliance of your employees. They are able to enter, update, and access necessary information effortlessly whenever and wherever they need it.
The Bottom Line
The core objective of ERP software for automobile industry is to deliver business efficiency, reduce operating costs and maximize profit. This can be achieved only when your ERP system is enabled with the right functionalities and features.
With Focus Softnet, you can rest assured to get the right ERP system with appropriate features, properly implemented. Our product experts understand your unique business needs and carefully select the best solution for you. Fill in the form for a quick demo.
