What auto component suppliers need from auto components ERP software
Supplying the automotive industry is demanding in ways that most manufacturing is not. OEMs and tier-1 customers send monthly schedules and frequent revisions, expect delivery to the day, audit your quality system, and track your rejection in parts per million. Parts are made to drawings that change through engineering changes, often passing through forging or casting, machining, heat treatment, plating and assembly across several vendors. Auto components ERP software keeps schedules, drawings, job work, quality records and billing connected so that a supplier can meet these demands without an army of people maintaining spreadsheets.
DotOne is the system we configure for tier-1 and tier-2 suppliers of machined, forged, cast, pressed, fabricated, plastic and rubber parts, for two-wheeler, passenger vehicle, commercial vehicle and tractor customers, and for aftermarket parts businesses.
Customer schedules, call-offs and delivery adherence
OEM business runs on schedules. A customer issues an open purchase order with prices and a monthly schedule by part number, then revises it as their own production plan changes, sometimes with daily or weekly call-offs. The ERP records each schedule version by customer, plant and part, and shows the net requirement after dispatches already made.
This feeds production planning and raw material purchase directly. Delivery adherence is measured against the schedule, so you see which parts and customers are behind before the customer rating report arrives. Advance shipping notices and customer-specific labels can be generated from the dispatch document where the customer requires them, and integration with customer portals can be set up where they allow it.
Part masters, drawing revisions and engineering changes
An auto component is defined by its customer part number and drawing revision. When the customer issues an engineering change, the revision changes, sometimes along with material, process or inspection requirements. Mixing revisions in production or dispatch can lead to rejection or a serious customer complaint.
- Part master with customer part number, internal code, drawing number and current revision, with older revisions retained.
- Revision-specific BOM, routing, control plan and inspection parameters.
- Effective date or cut-off for each change, with old revision stock identified and dispositioned.
- Linked documents such as drawings, PPAP submissions and customer approvals.
Each work order and dispatch carries the revision, so there is a clear record of which revision was supplied on which date. The BOM management setup supports revision control for parts and assemblies.
Multi-stage production and job work
A typical auto part may be forged or cast by one vendor, rough machined in-house, heat treated by a job worker, finish machined in-house, plated or painted by another job worker and then inspected and packed. Material is often in three or four places at once, and losses or rejections at each stage are easy to miss.
Operation-wise routing
The routing defines each operation, whether it is in-house or outsourced, the machine or vendor, cycle time and inspection requirement. Work orders follow the routing, and stock is held by stage so WIP is visible as forged, rough machined, heat treated, plated and finished.
Job work at vendors
Parts are issued to job workers by stage with delivery challans, and received with quantities accepted, rejected and short. Job work bills are checked against accepted quantity and agreed rate, and GST job work rules and ITC-04 data are handled from the same documents.
Machine shop data
For CNC and VMC shops, output and rejection per machine, operator and shift can be captured, along with setup time and downtime, giving the data needed to improve machine utilisation.
Quality records, PPM and traceability
Automotive customers expect a structured quality system, and many suppliers work to frameworks such as IATF 16949. The ERP does not replace your quality system, but it holds many of the records that system depends on, linked to real production data.
We configure incoming inspection for raw material and bought-out parts, first-piece and patrol inspection per operation against the control plan, and final inspection before dispatch. Gauges and instruments can be tracked with calibration due dates. Rejections are recorded with defect codes at each stage, and customer rejections and returns are logged to calculate PPM by customer and part. Customer complaints can be tracked through containment, root cause and corrective action in an 8D format.
For traceability, raw material heat numbers or lot numbers are carried through work orders and job work to finished lots, and the dispatch records which lots went to which customer on which date. See quality management software and batch traceability for more on these setups.
Tooling, dies and returnable packaging
Press tools, forging dies, moulds, jigs and fixtures are critical assets in auto component manufacturing, and many are customer-owned. The ERP tracks each tool with its owner, location, part numbers served and usage count, and schedules maintenance or refurbishment based on strokes or shots.
Customers often supply returnable bins, trolleys or pallets with a standard number of parts per pack. The ERP tracks returnable packaging by customer, so you know how many bins are at the customer, in transit and in your plant, and can raise shortages early.
Pricing, retro revisions and billing
Auto component prices are frequently revised for raw material price movements, often retrospectively. When a revision is agreed, invoices already raised during the revision period need supplementary invoices or credit notes for the difference. Doing this manually across hundreds of invoices and parts is slow and error-prone.
The ERP holds customer part prices with effective dates. When a retro revision is entered, it identifies all affected invoices and quantities, calculates the difference, and generates supplementary invoices or credit notes with the correct GST treatment. Raw material price variation formulas agreed with customers can also be configured. The accounting and GST module records these alongside regular billing.
Costing and aftermarket sales
Margins on OEM parts are tight, so knowing actual cost per part matters. DotOne calculates part cost from raw material weight including forging or casting yield, machining and job work charges, rejection at each stage, tooling amortisation, packing and freight, and compares it with the current customer price.
Many component makers also sell into the aftermarket through distributors and retailers, with MRP labels, branded packing and dealer schemes. The ERP manages this channel alongside OEM supplies from the same stock, with different packing and pricing rules.
What is the best ERP for auto component manufacturers?
When evaluating auto components ERP software, test it against the realities of OEM supply. Ask the vendor to enter a schedule revision, change a drawing revision with an effective date, route a part through two job workers with rejection, record a customer rejection to calculate PPM, trace a dispatched lot to its raw material heat and process a retro price revision across past invoices. A system that handles these on your data will save far more effort than one with a long generic module list.
Ask as well how planners and supervisors will use it day to day. Schedules change often, so the plan must be easy to re-run, and machine shop supervisors need quick entry screens or the mobile ERP app rather than long forms. Finally, check how the vendor approaches implementation for automotive suppliers, because masters such as part revisions, routings and inspection plans take careful preparation before go-live.
