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Motor Vehicles
Here, you'll find links to the information and resources you need to make an informed Motor Vehicles software selection:
The motor vehicles industry is extremely sensitive to changes in the economy, and itself has a huge influence on other industries (in terms of the thousands of small to medium businesses servicing the industry), as well as on society generally: the industry is extremely labor-intensive, and personnel fluctuation can affect a significant portion of the population. The challenges it faces are technological, environmental, and financial, among others.
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Specifically, here are some of the challenges facing the motor vehicles industry:
Despite widespread use of robots and similar machines, the industry remains human-labor-intensive. Robots still need human supervision, and many operations can only be performed by people.
The complexity of the car manufacturing process makes it difficult for companies to easily adapt to changes in the market. A company must usually choose between improving existing models—which requires less investment, but is not all that profitable in the long term—or creating new models, which involves huge investments in design and marketing, but is more likely to increase profits.
Even unsophisticated vehicles contain thousands of parts and accessories. These are provided by hundreds of suppliers, which have symbiotic relationships with the car makers. Suppliers, in turn, depend on other providers of services or raw materials, which makes the car manufacturing landscape even more complicated.
Motor vehicle manufacturers use networks of dealers to sell cars, components, and services. Managing relationships with dealerships and allocating the right resources (financial resources, inventory of vehicles and parts, etc.) is not an easy task.
More and more car manufacturers are trying to address their customers’ financing needs by creating their own leasing and credit institutions. In order to attract customers, manufacturers need to combine numerous financial instruments—including basic financing, special offers, warranties, etc.—into a range of offers. Managing these financial instruments usually requires two or more software solutions working together.
While there are several specialized software products for the automotive industry, they all have their origins in the enterprise resource planning (ERP) space. Discrete ERP and engineer-to-order (ETO) ERP systems, as well as product lifecycle management (PLM) systems, are the main types of software used by car manufacturing companies.
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Discrete Manufacturing (ERP)
Core PLM for Discrete Industries
Benefits of Using Software Solutions for Motor Vehicles
From design to purchasing, to production, to sales, the motor vehicles industry is particularly complex. To effectively manage all of these processes, car manufacturers require a business software solution that offers the following benefits:
Control over the design phase.
This includes support for different alternatives, changes made during the design process, and complex technical specifications. These requirements are supported by PLM software, which also allows collaboration with purchasing and production.
Purchasing and supplier management functionality.
This allows motor vehicle manufacturers to make sure they receive the right components, at the right time and at the best price. It also benefits vendors that produce products exclusively for the automotive industry, risking business failure if there is not enough demand in the market.
ETO software for manufacturing products based on specific engineering designs.
Manufacturing management is extremely important for the motor vehicles industry because it supports production planning, shop floor control, product configuration, and field service.
A software solution for defining and tracking quality and safety requirements.
Manufacturers must test to ensure that their vehicles comply with regulations, and be able to store and manage the resulting documentation.
Efficient sales management, including customer relationship management (CRM) functionality.
Car manufacturers sell not only vehicles, but also spare parts and services. As a general rule, spare parts sales generate more profit than new car sales do.
Along with industry specific functionality, a software solution for the automotive industry may also have
human resources management (HRM) functionality, which is very useful for organizations with a large number of employees;
business intelligence (BI) and reporting, which helps decision makers understand how the company is doing; and
document management, which manages a company’s entire document flow.
THE RISKS OF A FLAWED MOTOR VEHICLES SOFTWARE SELECTION PROCESS
Car manufacturing companies usually use several software solutions. Unfortunately, these solutions are rarely integrated, which makes collaboration between departments more difficult. Even companies that do use an integrated solution will face a number of challenges if that solution does not have the right functionality.
Inadequate scheduling functionality can have a significant impact on the manufacturing process. All stages of production need to be well defined. Failure to complete any one step on schedule will delay other steps, which impacts the entire production line.
Inadequate functionality for managing the financial instruments available for leasing and financing can lead to customers searching for better managed or less confusing options elsewhere. Even among existing customers, a poorly managed crediting system can create a bad reputation for the manufacturer, which can negatively affect sales.
Improper management of fixed assets will decrease their efficiency, which affects productivity and, ultimately, profit. If equipment use is not tracked properly, equipment can deteriorate sooner than projected and may need to be replaced—a major investment for a car manufacturer.
Why use the Motor Vehicles Evaluation Center?
Determine which functional aspects of a Motor Vehicles solution are priorities for your business.
Evaluate and understand the functionality that addresses Motor Vehicles requirements.
Find the Motor Vehicles solutions that are most likely to serve your business.
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