Auto Industry
Industry Characteristics
- In order to minimize logistics cost, most of the auto part manufacturers settle factories around auto manufacturing companies.
- Each part has at least one or two principal suppliers;
- At the end of a year, auto maker will forecast the coming year's sale and makes sales plan in accordance with current year's sale.
- Because the requested production cycle become more and more short, the auto parts manufacturers have to prepare a great quantity of safety stock.
- Each auto part contain a variety of parts, the parts suppliers only develop a small amount of new product;
- Auto parts BOM must contains routing, parts, details of assembly parts, materials ration, production flow chart, operating instructions, etc.
- Use international or national common product code or product name to indicate products;
- R&D staff must conduct cost analysis, such as materials usage analysis, manhour analysis, mould cost analysis, overhead analysis,etc.;
- Auto parts' prices are renewed every year, sales department does not participate in price negotiation, instead, the senior administrators of supplier negotiate with auto manufacturer and determine the prices;
- Normally, car manufacturers will forecast next year's sale before the year comes;
- Every month the supplier must go to car manufacturer's information system to download monthly supplying plan document;
- Most of the customers place order by sets;
- Customers always request the shipped orders come with a certain quantity spare parts;
- Redeploy production quantity and production time for products and parts in accordance with monthly sales plan;
- Rejected products must be considered on production planning;
- Material substitution is frequent;
- Steel and plastic materials must have safety stocks;
- Steel's purchase UOM is different with its internal issuing UOM, for example, the purchase UOM is KG, but the issuing UOM uses PCS or film;
- The steel's purchase price and settlement price are different;
- The raw materials are bulky, the received materials always be put to production line directly, and the related materials issuing documents will be created subsequently;
- Generate recyclable and regular scrap, the recyclable scrap can be put into production again.
Chang Hang Solutions
1. Engineering
- BOM data integration
- R&D data update
- Cost analysis of finished goods
2. Sales Management
- Sales price management
- Order tracking
- Import manual orders into system and generate system orders
- Inventory management
- Assembly products delivery
- Spare parts management
3. Purchasing Management
- Safety stock and order point
- Multi-UOM
- Automatically adjust inventory cost and accounts receivable
4. Billing Management
- Bills checking
5. Production Management
- Production plan
- Scrap calculation
- Materials substitution
- Work reports