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Characteristics of the auto parts industry

1

The auto parts industry has a wide range of products, large differences in product material characteristics, and different supporting logistics requirements

It mainly includes product categories such as machinery, electronics, textiles, and chemicals; depending on the type of production, it includes three categories: discrete manufacturing, process manufacturing, and discrete and process manufacturing. The main characteristics of the production of the auto parts industry are: the combination of discrete and process, the main is discrete, the process is supplemented, and the assembly is the focus.

2

Hierarchical levels of production companies in the auto parts industry

Those who supply directly to automobile OEMs are referred to as first-tier supporting enterprises; those who supply to first-tier supporting enterprises are called second-tier supporting enterprises ... Automotive OEMs generally provide their own production plans to the first-tier supporting on the EDM platform enterprise.

3

Many and complicated procedures

An auto parts factory also needs the cooperation of several subordinate supporting manufacturers to produce qualified products.

4

High quality traceability requirements

Requires a strict quality management system and quality traceability system.

5

Diverse production methods

It is based on production to order, supplemented by design to order and production to inventory.

Difficulties in the management of the auto parts industry

1

As the OEMs continue to shift operating risks and cost pressures to auto parts suppliers, and the rising costs of raw materials, energy and manpower of auto parts companies, it is difficult to transfer the cost pressure to the next-tier supporting manufacturers. Some extensive management reforms, with the help of advanced management systems, improve production efficiency, reduce waste, and thus reduce production costs.

2

Contrary to the fact that 100% of the OEMs are on the ERP system, the proportion of ERP systems on supporting suppliers at all levels is very small, and the lower the level, the lower the management. Auto OEMs generally publish production plans or orders to a platform through the procurement subsystem of their own ERP system. Suppliers do not have an ERP system. They need to manually log in to this platform to search, and then manually fill in the form to do their own Production Plan.

3

A single set of standardized ERP system cannot meet the application of the auto parts industry, and often requires professional product data management, production systems and dealer systems to meet its needs, which involves the existence of multiple systems in the auto parts industry Between integration.

4

Because most companies in the auto parts industry have many types of materials and their codes are not standardized, before entering the ERP system, the production materials and non-production materials management departments were separated, and there was a lack of unified control over the materials. Multi-code case.

5

Product design data cannot be obtained quickly; design changes and replacement of materials cannot be timely reported; product BOM and process version management and traceability are difficult.

6

Customers expect fast quotation management and require detailed quotation information, including materials, processes, tooling information, and more. However, it is difficult to obtain relevant and accurate information without an effective management system. In particular, before design and production, quotations and periodic price adjustments must be provided, and detailed quotation information needs to be provided again. The quotation request time is short, involving many departments, and the quotation is difficult.

7

Under traditional manual management, it is difficult to track the implementation of the procurement of materials; the order processing progress of each workshop is unclear, and it is difficult to accurately grasp the implementation of the market;

Auto parts industry solution architecture

SAP solutions help auto parts companies achieve integrated, lean operations

Auto parts industry solution features

1

Establishing an enterprise's large supply chain ecosystem: Provide internal management of the factory as the core, integrate customers and suppliers, and build a complete large supply chain management system.

2

Upstream supplier management system: supplier platform-manages the life cycle management of suppliers, from supplier evaluation to the elimination of suppliers due to substandard, the entire cycle management.

3

Enterprise internal management system: Provide solutions for key departments within the factory, provide work efficiency, increase department collaboration, eliminate department gaps, and reduce internal consumption.

4

Auto parts industry traceability system: Provide bar code solutions for the front-line employees of the factory. The front-line employees can quickly, prepare and timely feedback the field data, and provide the most critical field data for the SAP system.

5

Kanban production site: real-time monitoring of the progress of orders, including analysis of order fulfillment rate, product qualification rate, process completion, and bad conditions

6

Downstream customer collaboration: Improve customer experience and strengthen collaboration and information interaction with customers.

7

Group financial management and control system: meet the needs of business management of the enterprise, take software system as the technology platform, fully optimize the business process of the enterprise, support the development strategy of the enterprise and provide the best efficiency The system supports the consolidation of financial data of multiple companies in the group.

8

SAP BI intelligent business analysis platform: provides mobile end solutions and report analysis platforms for enterprises, strengthens mobile office, provides intelligent analysis, and improves business responsiveness and participation.

Successful customer case