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