Auto Component Industry
About The Client
Today’s business world is fast-paced and highly competitive, which makes innovation the primary determinant of long-term success. It takes a formal and strategic process to introduce new product concepts to the market so that ideas are not just innovative but also functional, scalable, and customer-oriented. Nippon Data’s Product Conceptualization solutions deliver a holistic framework to turn ideas into market-capable products effectively and efficiently.
Understanding the Challenges
Despite using an ERP system earlier, the company faced significant bottlenecks that affected their productivity and decision-making:
- Manual production planning: No automated control over SKUs, production targets, or inventory optimization.
- Lack of product-level and SKU-level profitability analysis.
- No visibility into branch-wise or product-category profitability.
- Wastages were not effectively tracked, leading to inaccurate costing.
- Credit control mechanisms were missing at both order and invoice levels.
- No tracking of dealer performance for sales enhancement or gap analysis.
- Insufficient data on material yields, rework, and extra consumption.
- Disconnected system for customer complaints, production traceability, and process costing.
- Inability to link customer SKUs with internal ERP SKUs.
- Poor integration between accounts, inventory, and production.
- No system for lot traceability, aging of invoices, or real-time stock valuation.
- Sales teams lacked access to real-time backend data, leading to missed opportunities and delays.
Solution: NEWTON ERP for Auto Component Manufacturing
With the implementation of NEWTON ERP ENTERPRISE, the company was able to automate and streamline operations end-to-end, resulting in improved control, traceability, and efficiency across all functions.
Key Features Implemented
Production & BOM Management
- Multi-level BOM versioning with tree structures
- Secure access to BOM data
- Automated tracking of KIT issues, extra consumption, alternate items, and job work processes
Industry-Specific Production Handling
- Tailored modules for forging, casting, and assembly operations
- Real-time WIP tracking with valuation (material, labor, electricity, etc.)
- Quality certificates captured for input materials (e.g., casted parts, steel rods)
Sales & Customer Management
- Capture of customer SKU names for better mapping
- Customer invoice aging based on actual material receipt date
- Import tools for customer-side data (e.g., delivery dates, payment confirmations)
Profitability & Cost Control
- Branch-wise, customer-wise, and product-wise profitability reporting
- Batch costing and process-wise costing with variance comparisons
- Accurate landed cost calculation of materials for better pricing strategy
Traceability & Quality Control
- Full traceability by operator, supervisor, machine, lot, vendor
- Lot re-call and rework tracking for audit trails
- Quality control checkpoints: inward, in-process, and outward
- Complaints captured and linked to root cause and corrective action
Credit Control & Dealer Management
- Credit limits by amount and days, applicable at order and invoice stages
- Dealer Performance Reports (DPR) with metrics like sales, collections, outstanding dues
- Sales force automation tools to access real-time data: stock, payments, promotions, and targets
Real-time Planning & Inventory
- Dynamic Material Requirement Planning (MRP)
- Real-time dispatch status, order tracking, and stock availability
- Stock view at customer-specific locations
Financial Integration
- Unified system for branch accounting, AR/AP, and cost centers
- Automated journal entries and reconciliation across plants and locations
Nippon Data’s Impact and Results
🔧 Improved decision-making with real-time data across production, quality, and finance
📉 Reduced production costs through yield monitoring and accurate process costing
📦 Optimized inventory and on-time delivery with dynamic MRP and dispatch planning
📈 Increased profitability through better dealer management and credit controls
🧾 Ensured regulatory compliance with integrated quality and traceability systems
🚀 Fast implementation and early ROI through data migration tools and streamlined deployment
Contact Us.
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