In the present car industry, producers are compelled to accomplish full possible proficiency to remain successful in the worldwide market. Guaranteeing the highest caliber and dependability are key segments of the automotive manufacturing industry. In which parts are focused and utilized in business armadas and buyer vehicles for stretched out their life as long as 10 years.
Moreover, keeping proper records of each asset is tough and managing them is even harder! This is where the asset management solution works!
First, it is important to know,
What Is the Automotive Industry?
The automotive industry includes a bunch of organizations that are involved in designing, developing, manufacturing, marketing, and selling a motor vehicle.
Since its involved manufacturing to development, it has lots of inventories, machines, and equipment that are used in the automotive industry. Since this is a lot of work machines work continuously and they need maintenance at regular intervals. Again, the asset management solution can help automotive industries.
What Is Asset Management in the Automotive Industry?
Asset management is one of the most important parts of the business to keep running efficiently. If assets are not managed in the right way, then it will not be productive for the business.
Asset management monitors manage and track all the activities of each asset. It is done for various purposes such as maintenance, asset theft, asset security, to know the real-time location.
Asset management boosts the productivity of each asset. It takes care of asset maintenance too; effective asset management can prolong asset life. It also helps in identifying non-productive assets.
According to Statista, “It is projected that the global automotive industry will grow to just under nine trillion U.S. dollars by 2030. It is anticipated that new vehicle sales will account for about 38 percent of this value.”
Why the Automotive Industry Needs Asset Management?
The automotive industry has also small size and big size organizations and it does not matter if your organization is small, your organization will need asset management. Either you need to move assets from one place to another or does not need to move at all. You need to monitor assets all the time otherwise it won't do any good to your business.
Real-time data tracking is also one of the reasons why asset management is required! Real-time data can help make decisions based on real-time information. With asset management software you can classify each asset either is a leased, rented, or owned.
What Are the Advantages of Using Asset Management Solutions in the Automotive Industry?
The advantages of using asset management solution in the Automotive Industry are as follow:
1. Eliminates Pen-Paper Approach
The pen and paper method is not only time consuming but also prone to error. As we know spreadsheet has errors that can affect the outcome and it impacts business decisions also, especially if they are based on these wrong spreadsheets.
But when you use asset management software you not only make the process automated but also minimizes the error risk. Asset management is known for data accuracy.
When you use papers for data storing, they can be lost, mutilated, or get outdated. But with asset management and tracking software you can retrieve information quickly, it does not matter how old data you are looking for; if data is stored in the software it will be retrieved.
2. Maintenance on Time
As we know equipment and assets are important as they add value to the organization. Assets & equipment are used in manufacturing, if these assets & equipment do not work then it will impact your business and whole supply chain. It will result in delayed order delivery.
Moreover, it will impact your business reputation. Thus, maintain assets and equipment is the necessity of the manufacturing business.
Asset management software provides scheduling maintenance that is why it is considered one of the main reasons for using an asset management solution. When maintenance is given on time it keeps assets in the best shape. This reduces the risk of sudden breakdown and in the long run maintenance expenses are also reduced. Most importantly, scheduled maintenance can increase asset life.
For maintenance on time, alerts and notifications are sent to the maintenance department. This feature comes in handy when there are lots of assets and equipment.
3. Track Assets and Shipments
Asset management software monitors assets and equipment health. Moreover, it keeps assets secured from theft and misplacement. It helps in shipment tracking as well!
How it does that? With the help of asset tracking technology such as RFID (Radio-frequency Identification) tag, Barcode label, GPS (Global Positioning System) chip, etc. They provide visibility & real-time information of assets. With these asset and inventory tags, you can see exactly where your shipment is located or where your asset is!
For passing the precise information, these asset tracking technologies can do the work for you. When managers tell exactly when the shipment will be delivered, it increases customer satisfaction as well.
4. Avoid Shortage of Inventory
Most people think that managing inventory and stock is a simple job. Surprisingly, keeping track & managing inventory is not a calk walk!
There are a lot of factors that need to be considered while managing inventory. Inventory can be stocked at several locations and warehouses. A lot of business suffers from loss due to mismanagement of inventory.
Several businesses' daily operations of manufacturing products are interrupted due to the unavailability of inventory. This causes productivity loss.
But with an effective asset management solution, you can avoid these types of scenarios as this software monitors inventories. More importantly, when inventory goes below the defined level it will alert the team about the same after which the refilling inventory process is started.
We know the automotive industry is huge and complex! In the automotive industry, competition is tough to gain a competitive edge asset management software is a must.
For manufacturing of automotive this software keeps track of shipment. They help decrease the downtime of assets and increase asset life. It also lets you know when an asset needs to be discarded.
Asset management software boosts the bottom line by increasing productivity and minimizing maintenance expenses. This software provides a different type of reports that are helpful in business growth.
Frequently Asked Questions (FAQs)
1. How asset management helps automotive manufacturers?
Asset management helps automotive manufacturers in the following ways:
1. Track assets, equipment, shipment, inventory
2. Safety regulatory compliance
3. Making process automated
4. Streamline operations
5. Mobile computing and cloud computing
6. Schedule maintenance
2. What are the different types of asset maintenance?
There are many types of asset maintenance:
1. Preventive maintenance
2. Predictive maintenance
3. Condition-based maintenance
4. Corrective maintenance
Most of the time preventive and predictive maintenance are used in the manufacturing automotive industry.
3. What is the future of the automotive industry?
According to Mckinsey, “global car sales will decline between 20 and 30 percent in 2020. Moreover, depending on the region, it may take up to four years to recover to pre-COVID-19 levels.” This whole scenario occurred due to pandemic devastation.