Overview of the Automotive Component Industry
Key Segments of Automotive Components:
1. Powertrain Components – Engine, gearbox, transmission.
2. Chassis Systems – Axles, brakes, suspension.
3. Electrical & Electronics – Batteries, sensors, wiring, lights, ECU.
4. Body & Interior Parts – Seats, dashboards, HVAC, doors.
5. Aftermarket Components – Spares, lubricants, accessories.
6. EV Components (New trend) – Motors, controllers, inverters, battery management systems.
Main Pain Areas in ERP for Automotive Component Manufacturers
Despite being a manufacturing-driven industry, many auto component companies struggle to digitize and
streamline their processes effectively.
Common ERP-Related Pain Points:
Area Pain Point Explanation
Inventory Stock mismatches & excess Poor demand forecasting, lack of real-time
inventory updates lead to dead stock or production halts.
Production Lack of traceability Difficulty in tracking part history (lot/batch level)
for recalls, quality audits.
Quality Control Manual inspection reporting Paper-based QC slows down defect tracking,
especially in Tier-1/2 suppliers.
Supply Chain Supplier delays, poor Inability to track incoming materials and plan JIT
visibility delivery due to disconnected systems.
Compliance AS9100, IATF 16949 Maintaining digital documentation for audits is
challenges time-consuming without ERP.
Sales & No real-time customer Sales teams cannot track dispatch status or
Distribution updates pending orders easily.
Machine Downtime & lack of No alerts or predictive tracking; leads to
Maintenance preventive maintenance production delays.
Costing Inaccurate product costing Incomplete BOM (Bill of Material) and indirect
cost allocation errors.
Integration Disconnected systems Using Tally for finance, Excel for production, and
no centralized control causes inefficiencies.
Context-Specific ERP Pain Areas for OEM Suppliers (Tier 1 / Tier 2)
1. Strict Delivery Commitments (JIT/Lean Manufacturing)
● Pain: Delays in delivery or wrong shipments can lead to penalty or blacklisting by OEMs.
● ERP Issue: Lack of real-time production planning and dispatch scheduling.
● Impact: Missed deadlines, line stoppage penalties, poor vendor ratings.
2. E-Invoice, E-Way Bill & GST Compliance
● Pain: OEMs require error-free documentation synced with GST & transport.
● ERP Issue: Manual billing, disconnected systems cause delays and compliance risk.
● Impact: Legal issues, payment delays, and supply chain bottlenecks.
3. Traceability and Batch Tracking
● Pain: OEMs demand full part traceability (lot number, material origin, operator log).
● ERP Issue: Excel or paper-based logs make recall management impossible.
● Impact: Failing quality audits, losing Tier-1 status, or failing ISO/IATF norms.
4. Vendor Rating & Customer Portal Integration
● Pain: OEMs rate suppliers monthly on delivery, quality, and responsiveness.
● ERP Issue: No visibility into metrics required for rating or portal integration.
● Impact: Poor score leads to fewer orders or removal from preferred vendor list.
5. Forecasting & Order Fluctuations
● Pain: OEMs share demand forecasts but change POs often.
● ERP Issue: No automatic update of production plans based on PO revisions.
● Impact: Overproduction/underproduction, excess raw stock or urgent shortages.
6. Quality Control with Compliance
● Pain: Need to submit quality reports, PPAP, APQP, SPC, and ISO/IATF docs.
● ERP Issue: Lack of integration between shop floor and quality documentation.
● Impact: Failed audits, shipment rejections, and compliance risks.
7. Integration with Supplier & Customer Chains
● Pain: Data flow between OEM, supplier, and raw material vendors is disconnected.
● ERP Issue: Systems not integrated; manual entries lead to delays/errors.
● Impact: Slower lead times, miscommunication, and workflow gaps.
8. Costing & Profitability Control
● Pain: OEMs squeeze margins, so accurate costing is crucial.
● ERP Issue: Indirect costs, machine time, and manpower not mapped to products.
● Impact: Under-quoting, missed cost-saving areas, reduced profitability.
Ideal ERP Capabilities Needed:
● MRP with OEM forecast input
● Batch & serial tracking
● Automated invoicing with GST & e-way bill
● Machine-wise production tracking
● Quality module with defect reason capture
● Customer/vendor portal integration
● Real-time dashboards for delivery & performance
ERP Pain Areas for Automotive Aftermarket Suppliers
Aftermarket suppliers sell components via dealers, distributors, retailers, and workshops—rather
than to vehicle manufacturers. The business is more dynamic, price-sensitive, and highly
competitive.
Key Pain Areas (Context of ERP):
Pain Area Description ERP Challenge Business Impact
1. Inventory Hundreds or thousands Poor stock visibility and Over/under-stocking,
Management of SKUs across multiple slow stock transfers missed sales
warehouses
2. Dealer & Need to manage orders, Lack of integrated dealer Manual errors, delays,
Distributor discounts, schemes, and portal and price-level missed incentive
Management credit management tracking
3. Pricing & Frequent price updates, No dynamic pricing Incorrect billing,
Discounts multiple pricing tiers structure in ERP dealer dissatisfaction
4. Returns High return volume due No streamlined RMA Loss of revenue, poor
Management to wrong parts, (Return Material trust
compatibility issues Authorization) process
5. Sales Forecasting Demand is seasonal and No analytics or past sales Excess stock, lost sales
varies by region or model tracking to forecast opportunities
accurately
6. Barcode & Parts need clear labeling, No barcode-enabled Manual work, dispatch
Packaging often required by tracking and packing delays
Compliance logistics partners module
7. Multi-location Dispatch from different ERP not linked with Slow order fulfillment
Warehouse & godowns, stock transfers real-time stock locations
Logistics daily
8. Customer Need to handle warranty No centralized system to Poor after-sales
Support & claims, part failures track part history, service, brand damage
Warranty Tracking warranty period
9. Integration with Many suppliers sell via No ERP integration with Manual duplication,
E-commerce or online platforms or B2B online sales platforms order delays
Dealer Apps portals
10. Sales Team Field sales teams need No mobile app or remote Inefficient operations,
Efficiency access to product data, ERP access delayed order booking
orders, invoices
ERP Modules That Help in Aftermarket Context:
Module Use
Inventory + Warehouse Mgmt Real-time multi-location stock updates
Dealer Portal / CRM Order booking, schemes, status updates
Sales & Distribution Discounts, returns, and price lists by dealer category
Barcode & Packing Pick, pack, dispatch automation
Warranty & Service Warranty tracking, part registration
Finance Region-wise credit control & collections
Analytics Dealer performance, SKU movement, market demand
Example Scenario: Supplier to OEM (e.g., Brake Pad Manufacturer)
Company: AutoMax Components Pvt. Ltd.
Supplies brake pads and caliper kits to OEMs like Tata Motors and Hero MotoCorp
Faces pressure for on-time delivery, component traceability, quality compliance, and cost
control
Key ERP Pain Areas and Module-Wise DigiSec Solutions
ERP Module Pain Area (Before DigiSec) How DigiSec ERP Solves It
1. Production Unplanned production, urgent MRP engine generates auto
Planning & Job Work orders, stockouts of raw production/job orders based on
materials demand, forecasts, and stock pipeline
2. Inventory & Stores No real-time visibility of stock at Centralized inventory view with WIP,
plant or warehouse CKD kits, finished stock, and FIFO
control across locations
3. Lot / Batch OEM asks for batch details in DigiSec enables lot/serial tracking for
Traceability audits or recalls—no system to every brake pad from raw material to
trace dispatch
4. Quality Control Manual QC logs, difficult to QC module logs inspection criteria,
track rejections or inspection generates quality certificates,
data manages rejection handling
5. Dispatch & Dispatch delays, missed Dispatch Plan + Container
Delivery deadlines, no consolidated Tracking + Packing Slip modules
planning streamline and track all shipments
6. Order Frequent PO changes by OEMs Sales module allows for SO
Management & Sales not reflected in production amendment, short close, credit
control, customer price list
mapping
7. Vendor/Supplier No system to track vendor Vendor Portal lets suppliers view POs,
Collaboration orders, approvals, or submit dispatch updates, and track
communication payments
8. Invoicing & GST Manual invoices, GST/HSN Built-in e-invoicing, HSN mapping,
Compliance code mismatch, slow e-way bill and optional e-way bill
generation generation—integrated with Tally
9. Reporting & OEM asks for reports like OTIF BI dashboards, Tableau reports,
Performance (On Time In Full), but no ready SKU profitability, and auto-mail
data reports available
10. Warranty Parts returned under warranty Component traceability module links
Tracking with no tracking on lifecycle part to vehicle, enabling warranty
validation and claim logs
Why DigiSec ERP Stands Out for OEM Suppliers
USP Value for OEM Suppliers
Battery / Part-to-Product Complies with OEM norms, supports audit & recall traceability
Traceability
Vendor & Customer Portals Improves supply chain transparency and OEM satisfaction
Dispatch + QC + Invoice Sync Streamlines order-to-cash with HSN + dispatch + GST
MRP + Job Work Cycle Matches OEM demand schedules with vendor job work
management
Multi-location + Cloud Access Supports factory, warehouse, depot—on a single cloud-based
system
Auto Alerts & WhatsApp Sends production, dispatch, and approval alerts to relevant
Integration teams instantly
Example Scenario: Automotive Manufacturer Supplying to Aftermarket
Company: AutoSpareTech Pvt. Ltd.
Manufactures suspension components (bushes, shock absorbers, arms)
Supplies to aftermarket dealers, distributors, retailers, and garages across India
Operates via multi-location warehouses and regional depots
Aftermarket Pain Points and DigiSec ERP/WMS Resolutions
🔧 Module Pain Area (Before DigiSec) DigiSec ERP/WMS Solution
1. Inventory & Poor real-time stock visibility across Centralized stock visibility across
Stock Accuracy depots; stockouts of fast-moving multi-location warehouses,
items inter-location transfers, and
FIFO/Expiry tracking
2. SKU Explosion 5000+ SKUs, multiple price levels for SKU-level pricing, multi-tier price
& Price dealers, volume-based discounts list, MRP mapping, and scheme
Variability management
3. Returns & High volume of product returns with Built-in reverse logistics module,
RMA Handling no tracking system with automated RMA, return reason,
QC and recycling
4. Dealer Order Manual order processing via Dealer Portal with self-ordering,
Handling phone/WhatsApp/emails leads to real-time inventory, and order status
errors tracking
5. Invoicing & Tax Delay in billing, mismatch in HSN Auto GST, HSN code mapping,
Compliance codes, wrong tax entries invoice templates, and optional
e-invoice & e-way bill generation
6. Dispatch & No daily dispatch planning or Dispatch planning module, packing
Delivery Issues shipment tracking slip with QC integration,
container/truck tracking
7. Warranty No way to trace faulty products sold Lot/Serial tracking from
Claim Tracking through aftermarket manufacturing to dealer, enabling
warranty validation
8. Scheme Difficult to track which dealer earned Scheme assignment and tracking
Tracking & what discount by dealer category or volume
Dealer Incentives within ERP
9. Mobile Sales team lacks access to live data Sales App + WhatsApp alerts for
Accessibility for on-the-go real-time stock, order, and target
Field Sales updates
10. Reporting & No insight into fast/slow movers, BI Dashboards, FSN analysis,
Forecasting regional sales performance sales heatmaps, stock aging and
reorder recommendations
Key USPs of DigiSec ERP + WMS for Aftermarket Automotive Suppliers
USP mHow It Helps in Aftermarket Business
Real-time Inventory & Prevents stockouts and excess inventory; ensures
Warehouse Automation fast-moving SKUs are always available
Dealer/Distributor Portal Empowers partners to place and track orders
themselves—less manual intervention
Reverse Logistics Handling Makes returns smooth and traceable; helps refurbish or
recycle usable parts
Multi-level Pricing + Scheme Handles varied pricing strategies, offers, and dealer slabs
Engine across regions
Mobile-first & Alerts Driven Ensures your team and dealers stay updated with dispatch,
payment, and order notifications
Barcode/QR + Smart Picking Reduces errors and speeds up packing & delivery from
warehouses
Role-based Dashboards + BI Helps management see profitability, region-wise
performance, and plan future production
🧾 Example Real-World Usage
AutoSpareTech implemented DigiSec ERP across 4 warehouses, 3000+ aftermarket
SKUs, and 80 distributors. Now, dealers can log in to place orders, view prices, track
dispatches, and raise service/warranty claims without any manual communication. Their
dispatch accuracy improved, and monthly stock reconciliation became fully automated.
