Automotive Industry | Kagami ERP

Change is constant in the Automotive Industry

The Enterprise Resource Planning (ERP) software is designed to function like a high-end solution for managing all kinds of businesses. ERP, or Enterprise Resource Planning, is a comprehensive platform of business applications that integrates and streamlines business operations, their processes, and information flow within an enterprise, thereby synchronizing resources throughout. In recent years, every business sector has adopted ERP due to the stiff competition in the market. ERP implementation provides substantial benefits to organizations. These benefits are widely discussed and endorsed.

In This Blog Let Us Discuss the Importance of ERP Software in The Automotive Industry:

ERP implementation can also benefit the automotive industry, providing unlimited business advantages. The automotive industry is on the verge of a revolution. Globalization plays a significant role in the economy. The automotive industry deals with many types and sizes of components that are used in assembling, polishing, and painting automobiles and their parts. The automotive industry is a dynamic and customer-driven industry. We can expect continued growth in the global automotive industry in the near future. The demand for electric vehicles, autonomous vehicles, and connected mobility are increasing among manufacturers. Customer satisfaction remains a priority for manufacturers. A recall or quality issue can negatively impact an OEM’s brand. Due to this, the supply chain is under increased pressure to maintain profitability, deliver high-quality products, and deliver on time while transforming the organization. By analyzing the latest trends in markets, streamlining every business function, and timely reporting issues, ERP software in the automotive industry helps companies meet the demands of highly competitive automotive business sectors.


In the automotive industry, ERP software can address every industrial challenge, including customer relations, inventory management, on-time delivery, marketing, or labor costs. The automotive industry can benefit from ERP software, as it helps in achieving company goals and redefining its strategies for better development and production.

Challenges Faced in the Automotive Industry

One of the greatest challenges any automotive industry today faces is the stiff competition and constantly evolving market which often pressures the industry to produce innovative products, reduce operational costs, with environmentally friendly options. ERP systems can efficiently synchronize various business processes at various stages in accordance with various business processes. As part of its functionality, an automotive ERP can also be used to transact adequate information between different business departments. Kagami ERP software can address the following concerns:

  • Accurate Demand Forecasting
  • Enhanced Customer Relationships
  • Maximize the sales and profit potential
  • Better quality product
  • Retroactive billing
  • Financial Reporting

How can Kagami ERP System Help your Automotive Industry?

Quality control management:

The automotive industry is increasingly relying on quality control management to ensure quality, consistency, and efficiency. Quality maintenance and safety are essential factors for the automotive industry. Thus, the products must undergo various safety tests and conform to standard norms to ensure their quality. Kagami ERP helps the automotive industry organize their maintenance requests, track their maintenance request progress, and plan according to their activities

Enhanced Inter-organizational Communication:

It allows teams and departments to communicate more effectively. Data can be viewed and edited by any authorized person. A company’s management can have a comprehensive view of everything going on in all the departments, including production, quality control, supply chain management, procurement, shipping, human resources, finance, and planning.

Efficient Inventory Management:

In the inventory management system, the goal is to ensure that enough resource material is available when needed. Manufacturing and sales play a crucial role in the automotive industry. Thus, an ERP with effective inventory management protocols helps overcome all challenges in the process.

Lower Costs and Higher ROI:

By using a cloud-based ERP system, manufacturers do not need to manage multiple servers or hire a staff of IT professionals to install and configure the systems. The cloud providers handle the entire process. By enhancing visibility, increasing efficiency, and reducing costs, a modern ERP provides better ROI.

Employee Efficiency:

 Employees who are happy work more efficiently. An ERP system automates operations and eliminates redundant data, resulting in higher employee satisfaction and greater efficiency. Employees can access data using handheld devices so they can work remotely using ERP.

Optimization of Resources:

 Businesses can utilize ERP solutions to drive lean manufacturing and develop a lean supply chain for optimum utilization of resources, shorter lead times, and less waste. The right person is assigned to tasks based on their skills, so the best result is achieved. By using enterprise resource planning software, skills can be matched with shop floor machinery.

Electronic Document Database:

An implementation of ERP software for the automotive industry helps in storing, managing, and organizing company data and documents. With the electronic document database, industries can create or generate any digital documents relevant to business processes and functions. With the help of ERP, automotive companies can store their large volumes of digital documents in a unified manner. Additions and deletions of documents can be retrieved quickly and efficiently through this central storage system.

Business Benefits

Kagami ERP for Automotive Industries helps to

  • Alter production and capacity plans according to customer demand
  • Integrate subcontracting cycle as per customer requirement
  • Achieve superior customer service by providing realistic delivery date through availability
  • Indent aggregation
  • Requirement consolidation

Kagami ERP Providing Solutions for Bus Manufacturing Industry


Kagami ERP Sales & Distribution is a robust order management and distribution module which optimizes delivery lead time. Create sales order schedule to plan final delivery dates to Run production cycle from MRP based on sales order schedules to manufacture Buses at the right time Timely flow of data from Sales Order to the manufacturing module ensures accurate scheduling of production on-time delivery to customers.


 Kagami ERP Procurement supports the complete purchasing cycle from requisition to purchase invoices including purchase returns. The purchasing department can procure based on MRP run plans, sales orders, or inventory. Procure only what is required by raising purchase requisition according to customer order or MRP run. Procure based on ordering methods – Fixed order qty., EOQ, Lot-for-lot, etc.

Inventory Management

Kagami ERP Inventory Management records and maintains track of entire inventory in the organization. It provides clear inventory visibility in the entire organization thus helping to gain competitive advantage by keeping the inventory management cost to the optimum.


Kagami ERP Production includes features such as definition of multilevel Master BOM, work centers and routings. It generates accurate schedules based on order/forecast reducing wasteful production and thus increasing safety. Kagami ERP MRP is a robust engine which generates efficient procurement and production plans.

Quality Assurance Control

Kagami ERP QAC provides easy-to-use tools yet capable enough to model complex quality norms desired by the industry.

Spare Management

Kagami ERP Spares simplifies the process of tracking from Inquiry to Invoice process.

Financial Management

Kagami ERP Financials streamlines and automates all financial business processes and empowers users to improve operations and reduce costs by making informed decisions.

Work Flow

Kagami ERP provides automatic approvals as per need user can have any no. of levels defined in the workflow. The requestors and participants can be defined specifically to each policy.

Smart Responders Dashboards

Kagami ERP Dashboards, Reminders automatically shows information useful to the user. The information is presented in an organized, easy to read format.

As Automobile manufacturers, if you are still using traditional methods of doing business it is time to switch to our Kagami ERP systems. There are qualitative and quantitative advantages to using ERP software in the automotive industry as they integrate internal and external processes, helping in the construction of a successful and profit-driven enterprise.

Automotive manufacturers who utilize our Kagami Enterprise Resource Planning software can benefit from an agile, powerful, and cost-effective business solution that promotes growth, productivity, and smart decision-making. Whether deployed in the cloud or on premise, ERP provides a clear picture of activities on the shop floor and warehouse, as well as planning and quality control.

By implementing Kagami ERP systems in your company, you see the advantage of new growth opportunities.

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