Odoo is an open-source, scalable, and flexible ERP solution that can meet the needs of automotive manufacturers, auto repair companies, and car dealers.
Automotive ERP: key functionality, integrations & software options
July 30, 2024
Automotive ERP is a software suite that automates and streamlines the management of day-to-day business activities such as procurement, production, quality control, inventory, and finance for automotive manufacturers, auto parts and aftermarket suppliers, dealerships, and other automotive companies.
Having solid expertise in ERP software consulting and development, Itransition implements and upgrades ERP solutions to help automotive companies optimize their manufacturing and inventory processes, enhance product quality, reduce costs, and increase profitability.
About Itransition
10+Â years in ERP services
50+ completed projects of different scales across industries
Hands-on expertise in delivering custom, platform-based, and hybrid ERP solutions
Strategic partnership with Odoo, Microsoft, and NetSuite
Our automotive ERP expertise in action
2x
faster work order management
ERP system for a repair and maintenance service company
Our team implemented an Odoo-based ERP solution to help the customer reduce the time for purchase order approval, automate manual tasks, and accelerate work order management.
80%
of manual tasks automated
An Odoo-based fleet management system
Itransition built an ERP system that allowed the customer to reduce operational expenses twofold and increase client satisfaction due to operations transparency. 
Need to digitalize and streamline core business processes?
Essential features for automotive ERP software
Automotive ERP software is built with different functional modules. To help bring qualitative changes in business, our automotive software developers tailor the functionality of each particular ERP automotive solution to the requirements and desired capabilities of a particular company.
Customer order management
Getting visibility into the end-to-end order execution workflow from order inception to fulfillment and gaining control over the order orchestration process with:
- Automated order creation and approval 
- Multichannel order aggregation
- Order status tracking
- Order pick, pack, and ship planning and scheduling
- Order issue tracking
- Order refund/return/exchange processing
Procurement management
Reducing purchase order lifecycle time and invoice processing, improving spend control and achieving transparency of all procurement-related processes with: 
- Procurement planning
- Automatic purchase order creation
- Invoice matching and routing
- Spend tracking
Supplier management
Increasing visibility into supplier relationships, streamlining supplier management, and minimizing supplier-related risks by:
- Getting an overview of suppliers’ KPIs
- Assessing and identifying best-performing suppliers
- Tracking suppliers’ contracts
- Monitoring the financial health of suppliers
Supply chain & inventory management
Streamlining customer order fulfillment, reducing shipment turnaround times, and avoiding costly inventory surplus by:
- Tracking inventory of raw materials, components, and finished goods across the supply chain, between multiple warehouses or production facilities
- Getting an overview of warehouse and logistics operations
- Receiving automated alerts and notifications in case of disruptions
- Leveraging analytics capabilities for planning inventory stock levels, inventory allocation, labor demand, shipment frequency and routes
Production management
Getting complete visibility and control over production processes to deliver high-quality automotive products and meet regulatory standards by automating:
- Bill of materials management
- Material requirements planning (MRP)
- Production planning
- Master production scheduling
- Product lifecycle management
- Quality control monitoring
Field service management
Streamlining every step of field service operations with:
- Automatic work order task creation, assignments and scheduling
- Monitoring work order progress
- Getting automated notifications and alerts (new tasks, change requests, looming deadlines)
- Inventory management automation
- Field workers' performance monitoring and assessment
- Invoicing and payments management automation
- Budgeting and job costing automation
- Mobile capabilities support
Financial management & accounting
Improving the productivity of the financial department, enhancing financial data accuracy, and driving considerable cost savings by eliminating manual efforts across the company’s finance-related tasks, including:
- Financial planning and budgeting
- Customer invoicing
- Financial statements generation
- Revenue management
- Expenses management
- Tax, financial risk and compliance management
Human resources management
Increasing the efficiency of personnel management and employee lifecycle management while minimizing employee retention by:
- Storing employee data in a central database
- Automating payroll, time, and attendance management
- Tasks and activities management
- Employee performance evaluation
- Recruitment and onboarding automation
- Employee health and safety monitoring
- Employee training management
- Competence management
- Corporate policies management
Document management
Reducing time and errors rooting from manual data entry and facilitating corporate data and documents access anywhere and anytime with:
- A centralized database of all corporate documents (contracts, plans, policies, etc.)
- Document indexing
- Document search
- Versioning
- Template-based document generation
- Access control management
- Audit trail
- File locking
Reporting & analytics
Enabling analytics insights into all the business processes of a company:
- KPIs and performance metrics
- Automated data management (data integration, processing, quality management, storage)
- Support for various analytics types (descriptive, diagnostic, predictive, and prescriptive)
- Real-time analytics
- Scheduled and ad-hoc reporting
- Custom reports and dashboards
- Self-service analytics querying
- Embedded reporting
- Mobile reporting
Key integrations for automotive ERP
To ensure accessibility, reliability, and accuracy of information across the organization with no duplication of effort and manual data entry, we set up integrations between automotive ERP systems and other corporate systems via APIs, third-party solutions, custom code, or a middle layer. Among the most common integrations are:
Automotive ERP
CRM
HCM
MES
EDI
EAM
BI
to deliver all-round customer-related data across departments for customer service improvement, marketing campaign automation, and enhanced customer satisfaction and experience.
Human capital management software
to streamline workforce management in alignment with the company’s processes by optimizing staff schedules, identifying skill gaps, refining recruitment activities, and devising performance management/employee engagement practices, etc.
Manufacturing execution system
to combine customer, sales, order processing, finance, and purchasing data with production scheduling, machine throughput, quality management, and other production process data. This integration enables agile manufacturing and helps to quickly orchestrate work orders, as well as fine-tune production processes in response to the demand. 
Electronic Data Interchange software
to automate communication via a streamlined real-time data exchange between vendors and customers.
Enterprise asset management software
to allocate fixed assets according to the set work order priorities, discover how asset management practices influence corporate financials, and plan asset procurement and disposal for asset-intensive companies using complex equipment across multiple locations.
Business intelligence software
to combine ERP data with other corporate data sources and get access to advanced analytics instruments, such as predictive analytics, forecasting, and what-if scenario modeling.
Top ERP software systems for the automotive industry
Key features
- Fleet management
- Inventory management
- Invoicing
- Purchase management
- Sales management
- Manufacturing management
- Production quality management
- Warehouse management
- Repairs management
- Human resources management
- Project planning and controlling
- Procurement and subcontractor management
- Contact management
- Accounting and finance
- CRM and estimation
- Equipment and fleet management
Best for
- Small companies
- Mid-sized companies
Downsides
- Challenging to scale and maintain
Oracle Netsuite is a cloud-native ERP suite that automotive companies can use to automate and streamline core business processes and workflows.Â
Key features
- Finance management and accounting
- Service and marketing automation
- Human resource management
- Billing
- Asset management
- CRM
- Sales order management
- Opportunity management
- Planning and budgeting
- Revenue recognition
- Financial analytics
- Reporting
- Field service management
Best for
- Companies of all sizes
Downsides
- Price hikes in the long run
Microsoft Dynamics 365 Business Central
Microsoft Dynamics 365 Business Central is a flexible ERP suite for businesses across multiple industries, including automotive to manage all core business processes. The solution can be deployed both in the cloud and on-premises.
Key features
- Financial management
- Reporting and analytics
- HR
- Sales and marketing activities management
- Order processing
- Production process management
- Purchase and inventory management
- Project management
- Service management
Best for
- Small companies
- Medium-sized companies
Downsides
- Integrations with third-party software is complicated and requires development expertise
Microsoft Dynamics 365 Finance & Operations
Microsoft Dynamics 365 Finance & Operations (now available under the Dynamics 365 Finance & SCM licenses) is a flexible ERP platform for managing finance, supply chain, and human resource operations throughout the entire automotive manufacturing process. Microsoft Dynamics 365 Finance & Operations can be deployed in the cloud or on-premises.
Key features
- Asset and inventory management
- Production management and control
- Field service management
- Cost management
- Demand planning
- Financial management
- Accounting and budgeting
- Sales and marketing
- Transportation management
- Human resource management with payroll
Best for
- Midsize businesses
- Large businesses
Downsides
- Hard to choose a professional implementation partner due to the overall system’s complexity
Acumatica offers a complete ERP suite for companies across industries, including automotive aftermarket distributors and manufacturing companies, to be deployed in the cloud or on-premises.
Key features
- Bill of materials and routing
- Production management
- Material requirements planning
- Advanced planning and scheduling
- Manufacturing management
- Product configurator
- Inventory management
- Sales order management
- Purchase order management
- Financial management
- Project accounting
- Customer management
- Service management
Best for
- Small companies
- Mid-sized companies
Downsides
- A steep learning curve
- Complicated pricing
Epicor
Epicor offers a range of products to meet the needs of the automotive aftermarket, automotive part manufacturing, automotive service and repair companies, and commercial vehicle parts distributors.
Key features
- Inventory management
- Product configurator
- Supply chain management
- Manufacturing management
- Retail management
- Financial management and accounting
- Planning and scheduling
- Special ordering
- Business analytics and intelligence
- Multiple deployment options
Best for
- Small organization
- Mid-sized organizations
Downsides
- A still emerging reseller network
- Complex implementation and customization
Plex
Plex is a cloud ERP solution primarily focused on companies in the automotive industry.
Key features
- Product quality planning
- Production part approval process
- Failure mode and effects analysis
- Measurement system analysis
- Material management
- Logistics evaluation
- Industry compliance
- Electronic data interchange (EDI) support
- Lean manufacturing support
- Manufacturing intelligence
- Enterprise accounting and consolidation
- Financial management
- Human capital management
- Suppliers and purchasing management
Best for
- Mid-sized companies
Downsides
- May require third-party integrations for global localization capabilities
Infor CloudSuite
Historically focused on manufacturing, Infor offers industry-specific cloud-based ERP for customers in multiple verticals, including automotive: automotive suppliers, tire suppliers, original equipment manufacturers (OEM), specialty vehicles, as well as after-market parts and services.
Key features
- Regulatory compliance
- Product control
- EDI support
- Billing and costing
- Financial and accounting
- CRM and customer service
- Multi-site, multi-logistics inventory planning
- End-to-end project management
- Supply chain management
- Field service
Best for
- Companies of all sizes
Downsides
- Challenging to choose and piece together solutions to meet your needs
- Costs of the solution
ERP software selection: factors to consider
To narrow down the options and create a shortlist of ERP providers, we consider the following high-level evaluation criteria:
Prioritized functional requirements
how well the ERP software suits your specific business requirements (e.g., production management, financials and accounting, advanced reporting).
Deployment model
cloud or on-premises deployment (some automotive companies must store sensitive data on-premises).
Flexibility
the ability of an ERP software solution to adapt to the changing business requirements (e.g., the ability to migrate to the cloud, advanced analytics capabilities or any other capabilities as an add-on option).
Scalability
how quickly you can grow and scale up standardization across the entire organization (e.g., the increase in the number of users doesn’t affect its performance, flexible pricing options for enterprises).
Simplicity
how easy it is to adopt software (customization capabilities, deployment speed, maintenance support).
Integration
how well the software can integrate with third-party systems and your IT ecosystem, and how open its architecture is.
Ease of use
how easy the software is to use and learn (e.g., intuitive user interface, self-service capabilities, embedded capabilities).
Industry focus
unique capabilities you need due to operating in the automotive sector.
Itransition’s ERP services
Itransition provides advisory support and implementation assistance to automotive companies, helping ensure the success of their ERP implementation project:
- Analysis of business needs and technology environment
- ERP strategy creation and roadmapping
- ERP solution architecture design
- ERP implementation support
- ERP software selection
Our end-to-end implementation services can include all or some of the following activities:
- ERP solution advisoryÂ
- ERP integrationÂ
- Custom ERP development 
- ERP migration
- ERP customization
- ERP support and maintenance
Automotive ERP implementation roadmap we follow
1
Business analysis
Our consultants start with assessing your business processes and existing infrastructure to define the requirements and outline the functional scope of the ERP solution.
2
Design & tech selection
Based on the findings from the analysis step, our experts conceptualize the ERP solution, define the integration scope, and draw up the optimal technology stack.
3
Project planning
The next step is planning the ERP implementation by outlining project timeframes, key phases, deliverables, resources, change management and risk management plans, and budget.
4
Customization/development
Using the scope defined earlier, the development team starts the customization or custom ERP development and then proceeds to ERP integration.
5
Quality assurance
We set up and run comprehensive QA processes to check the ERP system for malfunctions, UI/UX bugs, security flaws, and data quality issues.
6
Deployment & handover
We deploy ERP to the production environment and perform data migration to move corporate data to the ERP platform. Then we perform user training and onboarding.
7
Post-launch support
After the ERP software goes live, our team supports platform infrastructure and users and manages performance issues, troubleshoots bugs, and fine-tunes data flows if the need arises.
Business impact of automotive ERP solutions
Production cost reduction
ERP enables the implementation of lean manufacturing and supply chains, reducing production costs. The ERP solution optimizes resources, removes costly operational redundancies, improves lead times, and reduces waste.
Inventory optimization
An automotive ERP system synchronizes inventory with production requirements and customer demand to avoid excess inventory or inventory stock-outs. It helps to eliminate high holding costs, manufacturing process disruptions, or customer resentment.
Improved data access & analytics
An ERP database consolidates data across various departments, streamlining information flow and how it is shared within the company. It boosts collaboration, ensures secure data access, facilitates analytics and reporting, and enables data-based decision-making.
Task automation
Enterprise resource planning automates routine activities and data management for expense tracking, inventory control, payroll calculations, financial planning, and forecasting.
Simplified compliance
ERP enables complete traceability through the value chain and automates reporting. Simplified submission of reports to the relevant regulatory bodies facilitates compliance with government regulations and standards.
Better quality control
ERP grants access to real-time production and process monitoring data to provide a 360-degree view of the shop floor. It helps identify occurring issues and resolve them in real-time to ensure high-quality standards and increase the safety and durability of the manufactured vehicles.
Jumpstart your ERP project with professional ERP services
Challenges in implementing automotive ERP
Resistance to change
Resistance to change
Even if employees seem excited about the upcoming changes, a new software interface, redefined business processes, new job roles and responsibilities can cause fear, resistance to change, and sabotaging. To mitigate change management risks, we advise you to clearly communicate ERP benefits to employees, keep them informed about the implementation process, involve employees in ERP testing, as well as create comprehensive training programs and timely address arising user issues.
Platform customization vs custom ERP
Platform customization vs custom ERP
Choosing an ERP system that fully covers both your common operations and unique workflows can be rather challenging. To select the right ERP solution without regrets, map your ERP requirements with the capabilities of out-of-the-box ERP solutions available on the market. Opt for a ready-made ERP if it covers more than 70% of your solution scope, with the remaining 30% addressed through customization. Otherwise, custom ERP development can be a more cost-efficient choice.
Total cost of ownership
Total cost of ownership
ERP implementation implies some hidden costs that are hard to anticipate. To minimize your project risks, we recommend factoring in such indirect expenses as the cost of professional ERP consultants’ work, new hires for the IT department, or outsourcing a third-party vendor for regular maintenance, software updates, and security patching.
Data security & data quality issues
Data security & data quality issues
Consolidation of corporate-wide information in a unified data storage poses certain risks connected to data quality and data security. To balance data accessibility and safety without compromising data consistency and credibility, we recommend introducing robust data governance and security practices, like implementing strict access controls, data encryption, regular data quality audits, continuous monitoring, and regular training programs for employees on data handling and security best practices.
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