How can auto parts companies cultivate their internal strength to achieve global operations?

In recent years, with the rapid growth of the automobile market, the automobile parts industry is containing huge market prospects and opportunities. Today, the auto parts industry has maintained a momentum of rapid development,ERP Migration demonstrating the huge investment value of the auto parts industry. Under the huge temptation of the automobile market, multinational auto parts companies are rushing to invest and cooperate in various ways. The auto parts industry is facing a critical juncture in global operations.

In the competitive market environment of the auto parts industry, companies need to face weak cost control and the inability to promptly adapt to customer requirements for product quality, price,Waste Charging Solution delivery time, etc. The competitiveness of multinational companies has also brought severe challenges to the development of my country's auto parts industry. At the same time, original vehicle manufacturers (OEMs) have placed increasing demands on component manufacturers in terms of overall service, quality control, and the ability to more accurately coordinate product design, development, production, assembly, and logistics.

Challenges and changes faced by auto parts manufacturers

1. High costs and increasingly complex production processes

While manufacturers are significantly reducing costs, they must also cope with the increasing complexity of production processes and products,sap s4hana cloud and meet increasingly tight delivery time requirements, otherwise they will be punished by OEMs or OEMs.

2. OEMs now rely on fewer and fewer parts suppliers

As the total number of parts suppliers decreases, parts suppliers need to establish closer ties with OEMs and cooperate more closely in the supply chain network to help OEMs achieve their goals of reducing costs, improving quality and Goal to shorten interview time.

3. Under high competition, it is still necessary to adapt to changes in customer needs

Today's global automotive market is quite mature. In this challenging environment, parts manufacturers can only maintain their current competitiveness by continuously adapting to changes in customer needs.

4. Product production cycle continues to shorten

Component manufacturers face ever-shortening product life cycles and customer expectations for configurability/innovation

Double pressure of increasing value.

5. Internal management is backward and inefficient

Unlike automobile OEMs, parts suppliers at all levels currently still have weak awareness of establishing ERP systems, resulting in high consumption and low returns during corporate operations.

In the era of digital economy, industrial upgrading has long been on the agenda and the requirements are constantly strengthening. For small and medium-sized auto parts companies, they need to build a complete and efficient information management system to cater to the information age and improve their competitiveness in order to successfully survive in such a fiercely competitive environment!