In the very competitive automobile industry, every OEM (Original Equipment Manufacturer) is trying to woo the customers to increase their market share. “Customer is the king “and all the O.E’S and their dealer network” are working extra to reach to the new customers and also improve the customer retention.
In this age where cost cutting has become a mantra, the last bastions – a tool used to cut costs – is now being turned on its head. Enterprise Resource Planning (ERP) has been the tool corporations use to monitor inventory, manpower, operational costs. The mantra is “First and fast” to reach the customers. For this the O.E.M/Dealer must have an ERP which can improve the two way communication, increase the transparency to take quick counter measures and strategic decisions. Improvement in the business performance and higher customer satisfaction are the key issues in the auto industry.
However, the same MNCs are pondering over the thought, whether their business model suits the use of ERP systems. The dealership model for example, has a varying level of IT and administrative support across various dealers, who might not have the technical know-how or budget to afford a major ERP solution. Yet, these dealers are still required to report inventory and operational numbers to the ERP system at HQ.
The age of the two-tier ERP system has arrived. Not everyone can / need to operate a “Rolls-Royce”, but a simpler and smarter car would prove to be far more practical and manageable. Both would be able to integrate seamlessly and allow HQ to carry out the bulk of planning while giving dealers a leeway to find a solution that fits their needs.
Ramco Systems has developed a comprehensive Dealer Management System (RDMS) which improves speed, communication, collaboration, efficiency, productivity in the complex O.E.M/Dealership supply chain. RDMS is an effective way to use technology for direct benefit of business.
In the next blog in DMS series we will see some critical processes at a dealership which can benefit immensely from Ramco’s approach to Dealership Management using Two Tier Architecture.