Guide for the Full Automation of Inventory Management for Automotive Manufacturers
Ensuring reliable and efficient inventory management is a major challenge in the automotive parts manufacturing industry.
Between managing spare parts, fluctuating demand, and traceability requirements, poor planning leads to costly overstocking or critical stockouts.
Automating inventory management is therefore essential to reduce human errors, better control storage costs, and support decision-making.
In this guide, you’ll discover high-performance solutions designed to meet the specific needs of the automotive industry.
Learn how the Epicor Kinetic ERP system, designed for manufacturers, combined with specific modules such as Epicor CPC (ECPC) or an advanced MES system, optimizes all inventory management processes in the automotive sector.
Ready to transform your inventory management into a smooth, accurate, and fully automated process?
Inventory Control Challenges in Automotive Manufacturing
Inventory management in the automotive industry is a complex balance between operational efficiency, cost control, and traceability requirements.
Otherwise, manufacturers face the risk of production delays, financial losses, and regulatory non-compliance.
Let’s explore these challenges in detail to better understand why automating inventory management is so important.
Inventory Complexity
The automotive industry relies on a fragmented and dynamic supply chain. Manufacturers must manage:
- A large volume of spare parts with multiple references.
- Production cycles influenced by demand and supply variability.
- The risk of parts and components becoming obsolete, especially for specific models and limited series.
- Multi-site logistics with several warehouses and international suppliers.
Without automated inventory management, these variables lead to significant stock discrepancies, making production planning and execution more difficult.
Stock Levels
Beyond the complexity of parts, automotive manufacturers also face recurring challenges related to stock levels.
- Stockouts: A shortage of parts can halt the entire production line.
- Inventory surplus: Excess parts tie up capital and increase storage costs.
- Human errors: Manual inventory counts and data entry increase the risk of inaccuracies and reduce visibility.
- Poor synchronization with production: Disconnected inventory management from the manufacturing process causes delays and inefficiencies.
How to Optimize Inventory Management — Solutions for the Automotive Sector
To tackle these challenges, Epicor Kinetic and complementary modules enable advanced automation and seamless integration of industrial processes.
Discover how Epicor CPC (ECPC) or the advanced MES system connects the ERP to shop floor operations to optimize real-time inventory management and enhance traceability.
Epicor Kinetic: Cloud-Based ERP Solution for Automotive
Epicor Kinetic is a highly customizable ERP solution. This cloud-based software perfectly adapts to the ERP needs of automotive parts manufacturers, from small to large enterprises. Its key benefits include:
- Real-time inventory management with a centralized view and automatic updates.
- Optimized restocking processes.
- Improved traceability of parts and raw materials to meet industry compliance standards.
- Reduced IT costs since cloud eliminates the need for heavy infrastructure maintenance.
- Integration of various manufacturing processes to optimize production.
Epicor CPC (ECPC)
A complementary management module to connect Kinetic to shop floor operations. It eliminates paper processes, enhances operational accuracy, and improves overall production performance through:
- Digital work instructions (PDFs, videos, images).
- Serial number scanning and management, assisted picking, and automatic alerts.
- Enhanced traceability with meticulous documentation of every stock movement, accessible in real time.
- Seamless integration with industrial equipment (scanners, torque tools, IoT, and robots).
Advanced MES System
The advanced MES (Manufacturing Execution System) complements Epicor Kinetic by providing real-time visibility over production. It helps synchronize inventory with manufacturing processes to prevent bottlenecks.
- Real-time tracking of production performance.
- Optimization of resource usage to reduce waste.
- Automatic anomaly detection and improved quality control.
- Automation of inspections and quality checks to ensure compliance.
Integration with Other Industrial Software
Epicor Kinetic, ECPC, and the advanced MES system easily integrate with other solutions used in the automotive industry, such as:
- PLM tools (Product Lifecycle Management) for managing the product lifecycle.
- WMS systems (Warehouse Management System) for warehouse optimization.
- CMMS software (Computerized Maintenance Management System) for equipment maintenance.
This interoperability enables manufacturers to have a connected and high-performing ecosystem that reduces information gaps between departments.
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With or Without Automation — Compare at a Glance
| Criteria | Traditional Management | Automated Management with ERP and Modules |
|---|---|---|
| Visibility | Complex and error-prone, manual updates | Real-time automatic synchronization across multiple sites |
| Risk of Stockouts or Surplus | High due to lack of forecasting | Low thanks to proactive threshold management |
| Storage Costs | High due to poorly managed idle inventory | Optimized through more accurate restocking |
| Parts Traceability | Paper-based or Excel, error-prone | Digitized, serial tracking |
| Responsiveness to Fluctuations | Slow and rigid, based on estimates | Instant thanks to real-time data accessibility |
| Risk of Human Error | High due to manual entry | Low due to automation |
| Production Planning | Disconnected from inventory | Integrated and dynamic |
The 8 Concrete Benefits of Fully Automated Inventory Management
It’s not just about saving time or reducing costs. Adopting a high-performance automotive ERP solution is a true competitive advantage. We’re talking about:
1 – Real-time visibility into your stock levels to optimize costs, better manage flows, and improve the ability to adjust inventory based on demand.
2 – Process automation to reduce repetitive manual tasks and human errors.
3 – Advanced data synchronization between warehouses and production.
4 – IoT integration such as sensors and connected devices to monitor stock levels in real time, reduce errors, and anticipate needs.
5 – Enhanced traceability to simplify audits, comply with quality standards and regulations such as IATF 16949, ISO 9001, and more.
6 – Proactive obsolescence management to avoid unnecessary inventory losses.
7 – Automotive parts inventory management by barcodes, references, and serial numbers for optimized stock control.
8 – Flexibility and adaptability to your growth with a cloud-based management system that scales with your needs.
Automotive manufacturers who adopt advanced ERP tools and automation solutions transform inventory management into a true strategic lever.
Make the Move to Fully Automated Inventory Management
Don’t let inventory management hold back your growth. EC Solutions will support you with a tailored ERP implementation.
Contact our experts today for a personalized needs assessment.