5 Ways Your Automotive ERP System Is Keeping You From Increasing Revenue
Automotive suppliers who manufacture and sell their products to large automobile manufacturers can sometimes feel squeezed. Automobile manufacturers can be demanding clients – they can request lots of changes, which can cut into your profitability.
There are 5 areas where most ERP systems fall short in helping you increase revenue.
1. Your system doesn’t manage the sales process.
The easiest way to increase revenue is to increase sales. How can you sell more to your existing customers? How can you get into another division or introduce a new product line? A CRM (Customer Relationship Management) solution manages the sales, marketing and customer service processes. These vital functions can help you uncover and track new opportunities. With a solution like Microsoft Dynamics 365, the sales system and manufacturing system work together to give you a complete end-to-end picture from bid to production.
2. You’re missing opportunities because you spend so much time on each RFQ bid response.
Most automotive suppliers spend a lot of time responding to RFQs. Each bid response requires collaborative input from multiple contributors and then must be approved by various departments before the bid response is released. Your business solution should be able to automatically route the bid response to all the right people, tracking each person’s input. Being more efficient with your RFQ bid responses frees up more time to create and pursue new opportunities.
3. You’re losing money on engineering changes.
You know that the original product you spec out in the RFQ bid response often looks completely different than the product that rolls off the assembly line months later. Many automotive suppliers lack systems to manage and control the engineering changes. There’s a gap between the ERP system and the PLM system. Closing that gap so that you can capture fluctuating raw materials costs, design change costs, and be confident that you’re always working with the most current information can help you save money and increase revenue.
4. You are working around your systems.
How many spreadsheets do you use on a daily basis? How many systems do you need to login to? Inefficiency costs you time, which costs you revenue.
5. Your systems don’t easily provide the insight you need.
Good decisions are driven by good information. When information is scattered across multiple databases, applications, spreadsheets and emails, it’s difficult to see trends ‘in real time’ – while you can take corrective action. Solutions like PowerBI enable you to feed information from multiple sources into one central dashboard to provide you with the insight you need to increase revenue.