Industry solution on SAP Business One for Auto Component Manufacturers from Praxis

By Dattatreya R.Kulkarni Posted January 30th, 2018 | Benefits of SAP Business One, Management, SAP Technology.
SMEs engaged in manufacture and supply of automotive components have a unique business environment to work in. Some of the key elements of this are:
  • Supply chain is in the form of Tiered structure
    • Tier 1 companies supply to OEM
    • Tier 2 and below supply to upper tier companies
  • Just in time delivery expectation from Tier 1 companies
  • Low margin, high volume business
  • Constant fluctuation in demand
  • Manufacturing process distributed/split across in-house and outsourced resources
  • Retrospective rate change and billing process
  • Need to track efficiency of production resources – not just machines, but also tools, dies, inserts, consumables etc. – given the volumes involved
Managing successful growth consistently in this environment calls for the company to have well-defined processes and systems in place. For a very small player, who probably supplies to tier 3 companies or so, manual working practices may just suffice. But the higher the company is in the tiered structure of the supply chain; the demands of business can be overwhelming. It’s not uncommon though for many such companies still trying to run the show using manual methods. The most likely outcome of this is that they are overstaffed and hence very low on productivity, they encounter repetitive manual errors, they face penal actions from upper tier companies for not being able to meet the requirements, face a low customer satisfaction and carry the risk of losing business.
SAP Business One is a robust and scalable ERP solution that can help such companies. In addition to the best practices that the application offers in the area of sales, purchase, production, planning etc. Praxis has developed the automotive industry-specific solution set that rides on top of standard SAP Business One and offers the complete solution to customers.
Praxis’s Automotive solution consists of elements that address the following processes:
  • Sub-contracting
    • Vendor sub-contracting
    • Customer sub-contracting
    • Material wise reconciliation
    • Challan wise reconciliation
  • Quality management
    • Inward
    • In process
    • Pre-dispatch
  • Tracking expenses for critical assets like Machine, Die, Tools
  • Tracking expenses incurred in developing new components
  • Budgeting and managing the expenses under specific headings
  • Tracking of inventory with vendors for Inventory and Non-inventory items
We have helped more than a dozen companies from the SME sector belonging to the automotive supply chain in adopting SAP Business One successfully. These companies are engaged in different manufacturing process like press part components, precision machining, injection moulding, wire harnesses etc.
To know more about how Praxis can help you in assessing and adopting SAP Business One, please reach out to us at