In the last few years ERP software has exploded into the global business landscape. With the opening up of the Indian economy, there has been a sharp growth in various industry verticals thereby helping them reach a level of maturity that required advanced technology to efficiently manage and streamline their processes. This growth and along with the associated competition and quest for improving market share has led the firms to re-look at its processes and methods and put in place proper processes enablers and solutions to make its business more efficient and effective. A lot of Indian industries already have felt the need for ERP solutions, and the industry-related market growth should match the expansion of the field as a whole.
The Automotive Industry in India is estimated to be a 150 billion dollars segment in the year 2016 and will contribute to about 11% of India's GDP. The Indian auto components industry is one of the steepest growing manufacturing sectors which are both forward and backward integrated with other engineering and manufacturing divisions in the nation.
In the eve-changing ever-growing and competitive marketplace, it is very crucial for automotive manufacturers gain operation excellence. To sustain the current growth trajectory and face the increasing competition in the international and domestic markets, the Indian auto component companies will have to create a new set of competitive benefits based on value-capture rather than cost reduction. IT is a key enabler for the Indian auto component organizations to achieve these aspirations
Auto component manufacturers face challenges when they need quick access to reliable business information as the auto component companies possess disparate systems including manual paper-based processes that lead to disconnect amongst the supply chain elements which impedes real-time decision-making and secondly, it results in creation of ad-hoc sources of information, which in turn leads to problem of non-accurate data.
The auto component manufacturers pay high costs in inventory due to lack of visibility of the stock in work-in-progress stage. An insight on the inventory in WIP stage can help the firms plan their production more efficiently towards meeting the delivery schedules.
For automotive suppliers, it is important that they have a capability to collect information and processes within the company, as well as between themselves and their clients and suppliers, so that they can deal automatically with changes of whatever nature and pass information on to the required area to take respective action. By implementing collaborative processes, component manufacturers can establish long-term relationships with their trusted partners and clients.
Given the increasingly complex world in which automotive suppliers operate, it is very tough to see how better business practices can be instituted effectively without suitable technology and techniques. In order to achieve their goals, automotive suppliers need to consider ERP systems that give an integrated view of various processes.
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