How Odoo ERP Streamlined Purchase to Production for Auto Parts Manufacturer

Today we are going to see how one auto parts manufacturer was able to streamline their complete journey from purchase to production.

Whenever i get the time to sit across the table with an auto parts manufacturer one thing they always have to say that their purchase team, employee who is managing the store or the production supervisors are never on the same line nor in synchronization. Due to this issue, they are already loosing time just to make the things work, somehow.

If you also are from the same industry then you also might be feeling the same thing! and that’s where this success story actually begins.

Client Brief

Our client is actually a mid size automotive parts manufacturer in Noida and supplies precision components to OEMs. With time they have a growing their product line which now requires a stringent quality demand and that too across their multiple plants and warehouses.

What Challenges Were there Before Odoo

Once we checked the on ground situation and before they sought to digitize their operations they faced many issues on a day to day basis and to mention some of them are –

So, if you run an auto parts plant then you already know that these challenges for sure translate into delayed customer deliveries, penalty risks from OEMs, and rising operating costs.

Suggested them with Odoo ERP as a Solution

We provided them with a solution on Odoo ERP that will for sure assist them streamline their purchase, inventory, manufacturing, quality assurance, and maintenance all together. Let’s see how we tackled the transformation step by step:

1. Integration of Purchase with Inventory Departments
   Now, each and every purchase requisition gets validated against real time stock levels present in Odoo. Also, we have set up auto re ordering rules that basically ensure that the procurement gets triggered only when minimum stock threshold limit is reached.


2. Provided Manufacturing Scheduling which is now MRP Driven
   We utilized Odoo’s Manufacturing (MRP) module which in turn helps in production orders to get auto generated depending on the sales demand and material availability thereby removing manual scheduling.


3. Added steps for Quality Control Workflows
   We made sure that each and every batch of raw material and finished goods will go under the process of system driven inspection. Non conformance reports (NCRs) will be triggered against the suppliers or machines that will be then used for root cause analysis.


4. Planned Machinery Maintenance
   We helped them set up preventive and predictive maintenance which basically allows them to set up service schedules whic for sure will help them in reducing unplanned downtime by 30%.


5. Traceability & Costing
   With lot/batch tracking in place we have made sure that each and every finished component is traceable back to its raw material source and QC results. Also, we have combined it with integrated costing so the client will be able to easily monitor material usage, scrap, and rework in real time.

Odoo ERP Implementation Results

After we implemented the complete solution and thereafter within six months the impact was clear, they had a –

• 25% faster purchase cycle thanks to our implemented automated reordering & approval workflows.
• 40% reduction in production delays as they we able to schedule depending on the demand
• 100% batch traceability allowing them to have be compliant with OEM quality standards.
• 30% lower machine downtime as they were having preventive maintenance in place.
• Accurate product costing due to the fact that they now had a real time visibility into material consumption along with the wastage.

So, if you are also an auto manufacturer then for sure you already know that OEM contracts leave zero room for delays and defects. Hence, it’s the right time for you to inculcate Odoo ERP for digitizing your operations as it helps in creating an ecosystem that is connected from purchase to production along with quality assurance and uptime that’s built in it.

After all what i had to portray was not a theory. Actually this is how manufacturers like you are able to eliminate manufacturing workflow issues within internal departments and gaining full control.

To know more how we can help you streamline your complete automotive manufacturing process drop us a mail at sales@apagen.com or call us on +91 9971800665.