Automotive Components Manufacturer Achieves Production & Quality Excellence through Microsoft Dynamics AX
About the Client
A group of three companies manufacturing automotive suspension components, with extensive third party contract manufacturing operations, owns a sizeable market share in the Indian autocomponents manufacturing space. It supplies components to major Auto OEMs across the nation.
Given the tight production schedules & stringent quality measures prevalent in the industry, the company was facing challenges related to production processes & contract manufacturing operations. To sustain the current growth trajectory & maintain healthy contractual relationship with its customers and suppliers, the company needed a centralized business solution to help accelerate production cycles & ensure strict quality control besides monitoring intra & inter-company transactions.
Alletec’s in depth knowledge of Automotive Components manufacturing business, along with its solution capability with Microsoft Dynamics AX, convinced the company to select Alletec as its advisory & implementation partner for Microsoft Dynamics AX.
The business processes of the automotive components industry pose big demands on the entire supply chain system. The highest priority in this industry is ensuring that delivery deadlines are met. Scheduling and logistics procedures are challenged daily. Furthermore, operational efficiency, cost effectiveness, quality control and data transparency are imperative to remain competitive. Few typical challenges encountered by the company were:
Immaculate quality, packaging & product labeling had to be maintained to ensure conformity to customer prerequisites before a shipment was dispatched. Keeping a track of these was a critical task and yet a tough one to ensure an error-free shipping protocol & hence avoid costly errors.
Lack of visibility into inventory & process details impeded the production cycles due to inefficient material requirement planning which in turn impacted the delivery schedules.
Contract manufacturing was highly cost ineffective due to inefficient inhouse production planning resulting in unanticipated sub-contracting requirements.