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Industry Spotlight: Automotive | Tips for Choosing the Best Automotive ERP Software

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Industry spotlight automotive tips for choosing the best automotive erp software

Auto industry manufacturers and distributors need to leverage technological resources to keep up in today’s economy. That often means selecting a suitable ERP software solution.

In this article we cover

It doesn’t matter if you’re a manufacturer of parts, accessories or the cars themselves, the right software is key to helping drive your business forward. Market research shows that the car and auto manufacturing industry is poised to reach $99 billion in sales in 2019, with electric vehicles, self-driving cars and connectivity kicking the market into high gear.

For businesses that want to break out of simple stability and push ahead to growth and disruption, now is a great time to invest in automotive ERP software. The right ERP software package can create great new opportunities to break down barriers and improve how an entire organization functions as a well-oiled growth vehicle, so to speak. 

Top 10 ERP offers comprehensive data on the numerous automotive software options available for auto industry manufacturers. Here are six tips on what to look for and how to choose the most effective option.

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1. Supply chain management will usually be a high priority.

The 21st century automotive supply chain is more complex and requires more management than ever. Add in the new challenges of tariffs that are driving up costs, and it becomes essential to find cost savings and streamline supply chain operations wherever possible. The right automotive ERP software will help manufacturers improve transparency throughout the process to minimize costs.

Businesses who have implemented ERP software have enjoyed more growth because they’ve been able to efficiently manage inventory and vendor relationships, process payments automatically and improve their customer service. As we’ll cover below, they can also help keep things properly regulated, which can keep your business safe from costly fines. 

2. Most manufacturers will also want real-time data collection and mobile capabilities.

Another critical function of ERP systems is the collection, storage and reporting of data in a centralized platform. And the more flexibility businesses have with how to collect that data and what to do with it, the more useful the ERP system is likely to be. The ability to aggregate and share data will be invaluable for the modern manufacturer in any industry, creating comprehensive analytics that will help businesses adapt to the quickly evolving auto industry. Of course, data is vital to helping drive this industry in particular as it pertains to things like fuel efficiency, predictive maintenance, sales and marketing and other factors.

3. Cloud-based ERP systems are on the rise and worthy of serious consideration.

Cloud software is the new normal in many industries, including automotive, and manufacturing ERP software has shifted strongly in that direction as well. Choosing a cloud-based ERP solution has numerous advantages, including updates that are deployed automatically through cloud servers, faster installation times and a subscription model that allows businesses to pay smaller amounts every month rather than a large one-time fee. They also tend to reduce the hardware and IT investment required, since most of those resources are deployed on the ERP provider’s end.

Best automotive erp tips
Automotive ERP solutions best suited to specific manufacturing needs

4. ERP solutions should have the capacity to be expanded and modified.

Growth is the goal for most businesses, and that means that an ERP solution needs to fit a business’s growth strategies by offering customization options such as adding modules and processes. The less work required to implement a new process in the ERP system, the more effort can be used to refine that process. Those who manufacture within the auto industry know that agility and adaptability is particularly important here.

5. Robust financial tools will help keep finances healthy and compliant.

Banking, accounting and the regulations that come along with them are significant pain points for many businesses. This can be particularly problematic for small businesses that may not have the accounting resources to keep up — but an ERP system with robust financial tools can consolidate financial information and make it both useful and understandable.

6. ERP solutions should have the capacity to help with regulations.

Out of any industry, the motor vehicle manufacturing sector is one of the most regulated, with over 16,000 unique restrictions governing it in the United States. No surprise there, given the obvious links between automobiles, safety and the environment. Naturally, this should be a big consideration for you as you select the right auto ERP software for your needs. Consider investing in a platform that serves as a backup and an enforcer of proper industry standards and regulations, from materials management to safety and other regulations set forth by the government.

Automotive erp software
Robust financial tools will help keep finances healthy and compliant

As the automotive manufacturing industry continues to grow and change, it’s critical that businesses continue to leverage the best technology solutions to change alongside it and take advantage of growth opportunities. Businesses that want a manufacturing ERP software solution capable of delivering breakout performance should look carefully at Top 10 ERP’s database to find the product that’s right for them. 

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