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SAP Business One for the Automotive Industry: 5 Talking Points

From environmentally-friendly transportation to self-driven vehicles, the automotive industry is constantly innovating to produce exceptional results. For instance, the introduction of electric vehicles has revolutionized the way we look at fuel consumption and car safety.

However, as simple as it may seem, these developments involve a painstaking amount of planning and trials to ensure they meet industry standards. Project planning, deployment of tasks, meeting deadlines, etc., are crucial aspects to ensure a smooth production flow. Any discrepancies can cause enormous delays and sometimes even lead to the project being scraped. 

SAP Business One can be the optimal ERP solution for the automotive industry. Whether a global automotive company or an SME, SAP Business One will ensure that the project flow is organized and deadlines are met while keeping track of the budget. 

  • Subcontracting 

One of the principal aspects of an automotive company is subcontracting. Parts needed for production usually arrive from multiple contractors who work with the company.

SAP Business One maintains the purchase orders from other subcontractors while documenting the agreed cost. The log of vendors or subcontract customers is maintained along with all the documentation and order notices. Each contractor or vendor is individually mapped with their Bill of Material (BOM). 

This further provides a material-wise categorization of all the received products, including material, resource, and labor costs that go into the received product. SAP Business One effectively manages all the sub-contracting assignments and stocking.

  • Cost and Budget Management 

The exponential growth of prices is an unavoidable issue; hence budgeting expenses is essential. SAP Business One makes budget management easy and rapid. The inbuilt BI’s budget module feature allows for efficient budget management through tracking company expenses. 

It allows comparing the actual financial operations to the forecasted finances, clearly demonstrating areas where cost-cutting would be effective.

Areas, especially those in which cost deviation occurs, can be easily monitored through the budget reports. With its customizable features, SAP Business One allows alerts to be created for all the transactions made, thereby maintaining transparency and productivity. 

  • Inventory Tracking and Management

The inventory management process is the backbone of manufacturing for the automotive industry. Business operations and production will be halted or delayed if the inventory is not up to The inventory management process is the backbone of any manufacturing company. date. 

SAP Business One effortlessly manages the inventory by providing real-time data on availability. Customization features allow you to maintain a fixed number. If the stock falls below the set threshold, the system periodically sends alerts to update the stock. SAP Business One enables the inventory, along with the contractor and vendor details, their price lists, and the current market prices, to be stored securely.

The control parameters used in SAP Business One allow the quality and condition of the inventoried and non-inventoried stocks to be monitored. 

  • Quality Control

It is vital for the quality of the incoming material to be inspected and approved before moving ahead to manufacturing. SAP Business One provides data blocks including inspection plans and operations characters to perform quality checks. These data blocks verify the quality of the material and determine the management of the item once the quality is verified.

These results are verified by inspecting the sample data, where the quality and usage performance results are noted before dispatch. 

  • Resource Capacity Management

Planning for production includes checking raw material availability, labor availability, capacity constraints, machine availability, etc. It is essential to optimize production to plan for labor scheduling, machinery status, timings, and other possible limitations. With its multiple resource allocation methods, SAP Business One has allowed allocation to be streamlined.

The automatic scheduling option allows scheduling whenever there are available time slots for the required resources. The ‘on due date’ feature allows scheduling for a specific date and time, as per the requirements. This ensures that the capacity of the warehouse is effectively managed, hassle-free. 

Why do you need to implement SAP Business One?

The automotive industry faces challenges with price regulation, time and budget management, inventory update, quality, and regulatory constraints amongst many other restrictions. SAP Business One is designed to support automotive companies in every possible way to ensure all the operations run smoothly. Any hold-ups or delays can be pre-determined as SAP Business One can provide all the available information against the forecasted reports so scheduling can be right on track. 

SAP Business One streamlines business operations leading to enhanced efficiency and higher revenue. As a certified SAP Implementation Partner, we follow a proprietary implementation methodology designed for efficient & effective deployment of SAP Business One ERP. Our team has the widespread industry knowledge and is capable of supporting customers with their unique needs.

SAP Business One is an ideal solution to the complex business demands faced by automotive companies. Please reach out to us in case of any queries.

Want to learn more about our SAP Solution. Drop a query and our team will get back to you.

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