Introduction

To obtain an advantage over the competition and maximise the value and
relationships between suppliers and customers, supply chain management (SCM) is a
management approach. In order to establish a long-term supply chain, the following
five steps must be completed: Planning, sourcing materials, manufacturing, shipping,
and controlling problems or end-of-are life's all part of the process. ERP is a series of
processes, usually in real time, that are used for management purposes in the
enterprise.

These two things can be used on their own, but they also complement one other
perfectly. Using ERP, SCM may automate the sourcing stage and its inventory, as
well as the manufacturing stage's production schedule and the delivery schedule. An
analysis of the relationship between ERP and SCM is presented in this paper, which
also identifies the benefits and potential areas for improvement with a focus on
competitive advantage.

ERP has a beneficial impact on SCM, lowers costs, enhances communication, and
gives a competitive edge, however my studies suggest that ERP implementation is
extremely tough. The automobile industry is one of the most important in Malaysia
and around the world. The Malaysian economy's automobile sector has emerged as a
bright spot. This industry plays an important role in the overall economy. Product,
process, and technology innovation are the hallmarks of this industry. The health of
the economy can be gauged by looking at how well the automobile industry is doing.
Supply chains for automobiles are currently confronted with a number of challenges,
including pressure from consumers for cost reduction, production of global goods at
local prices, flawless execution of finished products without line stoppage in order to
avoid huge penalties, demand management due to fluctuations in demand, integration
and collaboration with customers at new product development stages due to additional
costs and resources and issues with sharing confidential information..

Management of the supply chain

The automotive supply chain's requirements

Visibility in real time

Many of the components that make up a car are made in one location or are procured
from other countries. In the event of one delay, the entire assembly and distribution of
crucial vehicle components can be jeopardised. In the event of an emergency like this,
manufacturing may be halted. Managers must have real-time access to an integrated
database for all operations in order to avoid this.

2. Bringing together data from various suppliers and manufacturers.

On-time component delivery and high-quality completed goods from Tier 1 suppliers
are becoming essential for OEMs as their competitiveness rises. There are three levels
of suppliers in the automotive supply chain: those who sell raw materials, those who
manufacture, and those who assemble. When it comes to managing and allocating
orders, data is spread. OEMs must apply lean replenishment and logistics strategies in
order to achieve top-of-the-line performance. A network-based supply chain with
integrations across the chain is the only way to accomplish this.

3. An understanding of the market and consumer needs.

Production and demand can only be stabilised if we have a clear picture of what
consumers want and are willing to spend on different types of vehicles. In the past,
vendors and dealers had direct access to customers' data, while OEMs and suppliers
had access to only the minimal necessities. A company in the automobile industry that
wants to compete on a global scale must have smart networks that enable more data
sharing and interconnectivity.

mitigating hazards and disruptions from the outside world

A stoppage in the supply chain causes an operation to grind to a halt. The use of
analytical tools and stakeholder education is critical to improving management.
Additionally, OEM data must be transmitted across encrypted pathways.

5.Assessing the level of quality

Product quality must be preserved if a company hopes to win and keep customers. A
company's reputation can be tarnished if its data is not properly monitored. Any
vehicle that isn't working properly costs money and wastes resources. To save both
time and money, businesses need quality control procedures at every stage of the
supply chain.

6.Control of costs

High fixed and variable costs are encountered in the supply chains of automotive
sectors. There are internal and external costs associated with suppliers, manufacturers
and production lines, as well as expenses for new equipment and utilities.
ERP

IT systems in the automotive industry

It is possible to implement ERP systems in the automotive industry to improve

productivity, cut costs, and increase profitability. ERP systems can be incorporated
into any business. In order to successfully deploy ERP, however, a significant amount
of time, money, and coordination across many divisions within the firm are required.
Investing in ERP systems for your automotive manufacturing or supply company may
be expensive, but the rewards can far outweigh the costs in terms of money, time, and
effort.

COST SAVINGS

Because ERP programmes are expensive, the idea that they can actually save your
firm money may appear like a paradox to the casual observer. However, an ERP
system is able to accomplish this. In their ideal state, ERP systems can assist your
firm integrate all of the disparate pieces of software it currently utilises. Product
development, finance, supply chain management, customer relationship management
(CRM), inventory management... and much more are all integrated into a single ERP
solution. However, bringing together these many functions may not seem like a major
concern at first glance.
However, it can have a significant impact on your car manufacturing company's
ability to reduce costs and increase productivity. In addition, because your
organisation now only needs to deal with one software system, you may save money
on training staff to work with numerous software systems and valuable time in the
process as well.

Second, improved collaboration and communication.

ERP programmes come in a variety of flavours.

1. Real-time manipulation and sharing of data

2. Improving the accessibility of database

Enhancing the security of the database

4.Improving communication and cooperation among team members

An ERP eliminates the need to manually merge data from several software systems
and procedures. An ERP organises data, stores it, and makes it accessible to several
groups.
in a safe and comprehensive manner

3.COMPLETE ANALYSIS

From income reports, expense statements, and key performance indicators (KPIs) to
inventory status updates and more, the proper Enterprise Resource Planning (ERP)
system makes it easy for different teams in your organisation produce a wide range of
reports.. You'll be able to respond more swiftly to crises and make better judgments if
you can generate these reports in a timely manner. An excellent ERP solution also
eliminates the demand for an IT department dedicated to ERP reporting.

In addition, there has been an increase in productivity.

In order to eliminate wasted time and increase revenue, a successful ERP guarantees
that each resource, minute, and person is maximised effectively.

5.BETTER SUPPORT FOR CUSTOMERS

all that allows you to improve your marketing duties, whether it is: ERP systems that
work well with customer relationship management systems (CRM)
Reaching out to more people via the internet

Your sales funnel's leads should be nurtured.

Turning prospects into customers

Relationship management is the key to keeping clients.

Keeping in touch with your clients at each stage of the buying process

Six.Easy compliance with rules and regulations. Only by adhering to a variety of

regulatory requirements will automotive firms be able to continue

regulations. With the help of an ERP geared for regulatory compliance, the challenge
of generating and managing secure reports for submission to regulatory authorities
becomes less intimidating.

INVENTORY MANAGEMENT OPTIMIZATION

Stable inventory and manufacturing procedures are likely to be important to this firm,
as they are to the majority of vehicle manufacturers and parts suppliers. In spite of
this, there is room for development. Efficient inventory management is a primary
benefit of ERP systems, which can assist reduce inventory holding costs and save
money in the long run.

This is an example of what I'm talking about

Japanese carmaker Toyota Motor Corporation has its headquarters in Aichi, Japan.
One of the world's largest car manufacturers, Toyota employs more than half a
million people at its plants throughout the world thanks to the company's supply chain
management strategy. Toyoda founded Toyota in 1937, and the company has since
evolved to become the world's largest automaker. Over the past decade, Toyota has
produced more than 10 million automobiles in a wide range of categories, from
private to luxury to commercial.

Toyota's key operational procedures

Product identification, data streaming and consumer expectations and revenue figures
are all important Toyota supply chain management activities. As part of Toyota's
operations objectives, the company's management makes decisions based on these
four factors to determine the areas the business should focus on in order for it
maintain its position in the market, meet consumer expectations and generate
maximum profits while delivering affordable products to consumers. To guarantee
that all donors' demands are met while keeping in mind the necessities of each
beneficiary, income alludes to the advancement of reserve along each path.

As the largest car manufacturer today, it produces an extensive range of automobiles

and the features associated with car manufacturers. Toyota has dispersed its activities
among many service providers to assist the brands better manage each operation
instead of trying to monitor and oversee the complete operation in order to reduce the
logistics involved in the production of autos and replacement components.
Assembling plants are depicted in the over-stream diagram as industrial facilities
where the vehicle is first given the body look, then the paint look, and finally
assembled and audited. Immediately once the car is completed, it is shipped out to the
vendor for delivery.

Toyota's Business Plan

Toyota's supply chain management strategy can only succeed if all stakeholders are
included in the planning process. Stakeholder participation and contributions are a
major issue when it comes to good business management. This leads to managers
adopting individual-driven strategies without engaging their employees about the
practical implementation, which results in delivery challenges for the company's
customers. Businesses that don't involve their employees in the day-to-day operations,
decisions, and strategy formulation are doomed to fail. Heijunka is a key principle
used by Toyota to guide the company's operations and success. Before any business
activities can be built, Heijunka refers to the concept of internal soothing.

It is predicted that the supply chain

The growing need for personal transportation is projected to keep driving up demand
for automobiles for some time to come. Because of this, Toyota is projected to
continue reporting rising sales, but the corporation will have to incorporate current
technologies and address environmental concerns in order to assist the business retain
customers and answer their concerns.
Improvement and recreation approaches are two of the most popular ways to forecast
the future of an offer chain. Based on an entire number programme and figures,
designs for gathering, stock and transportation will be produced as a means of
reducing accessible chain costs. The opposite approach of expectation is replication
methods that urge executives to execute a regular routine by abusing the interest
history over a multi-year sum as a contrarian strategy.

As long as consumers are concerned about getting the best value for their money,
corporations like Toyota will be forced to keep innovating and lowering their
production costs while maintaining high standards of quality. Each stakeholder
benefitted from the new and enhanced system, which ensured proper record-keeping
and informed each member about their efforts.

The end result (case study)

It's easy to summarise by saying that Toyota is the world's largest automaker and that
the rising popularity of its models is fueling its expansion. That's why adopting
modern technology has become imperative for the brand, as it helps it maintain its
existing position as well as be innovative toward future growth opportunities. It is
possible that Toyota's supply chain management will necessitate improvements and
innovations to its current products, allowing the brand to expand into new markets
and reduce its dependency on a particular product type.

Recommendations for the future

However, there are still a few areas of SSCM in the automobile sector that have not
been well researched. The following are the most important research implications
from this study's comprehensive literature evaluation, which will serve as the
foundation for any future work. Those who are interested in advancing this field of
study may find these ideas useful. ➢ In the automobile business, stakeholders (e.g.,
investors, governments, employees, consumers, competitors) have a significant
impact on how the industry operates. A lack of attention has been paid to examining
the needs of the stakeholders, as our research has shown In particular, we found that
just a few studies have examined the impact of stakeholder pressure on a single firm's
performance or adoption of environmental policy. When it comes to the automotive
sector, environmental deterioration occurs mostly along the supply chain's various
tiers. Future research should focus on how the automotive industry's supply chain
layers collaborate to respond to the pressure from stakeholders.