The pandemic has made industries around the world reconsidering the inventory management systems that they deployed before. The pandemic shows that an unplanned event could cause such a huge disruption and uncertainty in the inventory, either in form of shortage or surplus of inventory. Adapting to a new system is a must in order to keep up with the ever-changing landscaping of industries, especially the automotive industry.
What is an Automotive Inventory Management Systems?
Automotive inventory management systems encompass the process of tracking, organizing products from supplier, through the manufacturer production floor, and into the end customer. It is about visibility of the items through all the channels, and making sure it is available at the right time, amount, and place.
Inventory Management Systems Benefit
A good inventory management in the automotive industries brings tons of benefit to the industries including:
Plan based on Demand
Surplus or shortage of inventory will do no good to the industry. Surplus inventory takes the storage space and excess money that can be used for different purposes. Lack in Inventory could mean customer dissatisfaction.
By having the system, the industry is able to make sure that they have the right item at the right time. Analyzing the historical data allows the industry to make and predict an accurate future plan.
The system allows the industry to track down the supplier for each part or component they use for production. This traceability capability gives insight to the industry about their supplier, which one produces the best component to work with.
The system gives visibility on the availability and shortage of the items needed for production. The system allows the automotive industry to ensure that the production plan runs smoothly without worrying about not having the required component.
Automotive industry usually has several warehouses spread out in different locations. Managing different warehouses required an integrated system to ensure that they have sufficient components on each location. Inventory management systems gives full visibility of inventory levels in all locations to help optimize the everyday activity.
The system helps to bring a more efficient and seamless order fulfillment that runs through various and multiple channels. Order from customer is cross-checked against global inventory and then the appropriate action taken either by prioritizing the important orders or fulfilling the order from the closest warehouse.
Traceability and Customer Service
The system that can trace a product right down to the supplier is able to address customer issues such as order status, return, and exchanges faster. The information visibility gives the customer service representation the ability to track and find the information they need immediately without having to pass down the customer request down the line. It will improve customer satisfaction and reduce the potentially lost customer.
Inventory Management Information
The system comes with different type of features and it can be customized according to need. Several examples of the available features are:
- Spare part replenishment functionality. Provide the information about the maximum and minimum item in the stock, delivery time, and amount of package required for regular delivery.
- Warehouse management. Provide the functionality of receiving and ensuring the items are arrived in the warehouse as well as picking and delivering the items to the customer.
- Multi-location stock management. Provide the functionality to manage the stock and items that spread in several locations from warehouses, distributors and showrooms.
Inventory management systems provide the answer to the ever-changing landscaping of the automotive industry in the term of global supply chain. The system provides the automotive inventory visibility that allows the supply chain system to operate at its maximum potential. Automotive or any manufacture industry needs to analyze each step of the supply chain and apply the right kind of inventory system.
One of industrial land in Indonesia that support the inventory management system information is Suryacipta. As the name implies, Suryacipta is Industrial land with strategic location & ready to host Industry 4.0. Suryacipta is Industrial area developers in Karawang namely Suryacipta City of Industry (SCI) & Subang Smartpolitan that has an integrated township development with a smart and sustainable concept that implement IoT based technology in every aspect.