VERTICALLY AND HORIZONTALLY INTEGRATED: THE ERP SYSTEM FOR AUTOMOTIVE PARTS SUPPLIERS
The automotive industry is experiencing a rapid pace of change: automotive customers expect vehicles to be increasingly personalised, and equipped with modern computing and communications equipment as ‘connected cars’. Alongside the still standard combustion engine, electromobility is now an increasingly attractive alternative, with new players like Tesla appearing on the market almost overnight. Asian manufacturers are also taking more and more market share. All of this toughens the competitive environment and puts pressure on costs.
AUTOMOTIVE PARTS SUPPLIERS PRESSURED BY OEMS
OEMs are responding to this development by increasing pressure on their suppliers. OEMs expect input from automotive parts suppliers at an early stage in development, and they also expect high-quality, attractively-priced products that are typically produced flexibly and to be delivered either just in time or just in sequence. Apart from product quality, process quality also has a decisive role to play here: automotive parts suppliers won’t even be considered if they can’t comply with data exchange standards, for example. In contrast, those who satisfy these stringent requirements can establish themselves as long-term strategic partners.
VERTICAL AND HORIZONTAL INTEGRATION WITH THE ERP SYSTEM FOR AUTOMOTIVE PARTS SUPPLIERS
All of this depends on automotive parts suppliers continuing to expand both their vertical integration (with the OEM and their input suppliers) and their horizontal integration (between the individual business departments). This, in turn, makes an ERP system for automotive parts suppliers necessary that supports all of the processes between supplier and manufacturer, within the departments and between the departments.