- The automotive industry manages complex inventories in addition to facing vast outside pressures.
- Many automotive companies have found long-term success with mobile barcoding software.
- Learn why three real-life companies in the automotive industry implemented mobile barcoding solutions and their significant results.
The automotive industry is no stranger to complex inventory management. With extensive inventories, often of small components, managing even everyday inventory needs can be overwhelming. Accurately forecasting inventory amounts for end customers or spare parts is even more challenging.
Outside stressors like global demand deflation, labor shortages, and increased government regulations also mean tight margins for many. Companies in the automotive industry can’t afford to waste money rush shipping out-of-stock or lost inventory parts or letting parts sit unused on the shelf.
One solution is to automate data collection with mobile barcoding software.
Mobile Barcoding Software for the Automotive Industry
Through a combination of mobile apps, barcodes, and hardware, mobile barcoding lets automotive companies easily—and accurately—track even the most extensive inventory libraries across global operations. This flexible technology also supports low-code mobile app development and integrates with carousels, scales, and industry 4.0 technology like LGVs, robots/co-bots, and more for a connected warehouse.
Many automotive companies have already made this transition. Let’s look at some of the top mobile barcoding success stories for the automotive industry:
Flexibility and Self-Ownership
Precision Replacement Parts, or PRP, is a replacement parts provider to global automotive brands. They were looking to modernize their data collection for better inventory control and in-house self-sufficiency.
With mobile barcoding, PRP realized key results:
- Near-perfect inventory accuracy.
- In-house mobile app development.
- Version independent barcode software for easier ERP upgrades.
96% Stock Reliability
As an automotive part supplier, Brabant Alucast’s hybrid data collection processes were error prone, slow, and costly. The company decided to solve the problem with mobile inventory technology paired with an ERP upgrade.
Results were transformative: stock reliability increased from 70 to 96% just six months after implementation.
50% Less Processing Time
Myers Tire Supply is the largest just-in-time resupply distributor to independent tire repair shops. In order to improve customer service and reduce operating costs, Myers implemented a just-in-time (JIT) methodology with mobile barcoding across its extensive warehouse network.
With mobile barcoding, Myers saw a 50% reduction in processing time at the receiving dock, as well as:
- Increased inventory, order, and shipping accuracy.
- Improved customer service.
- Reduced labor costs.
Toyota Data Collection Offers Lessons for Operational Resilience
In order for manufacturers to handle product recalls without causing severe disruption to operations, they need to have strong data collection procedures in place. This has proven true for Toyota.
With the help of Oracle E-Business Suite, Toyota contacts suppliers via email to collect data on specified parts. The supplier’s IMDS contact person then fills out a datasheet, which is sent to Toyota’s internal database, and the system cross-checks the information to ensure the parts are meeting requirements.
By complementing Oracle ERP solution with RFgen’s mobile barcoding software solutions, companies can see even more benefits, creating the kind of operational strength that is enabling Toyota to respond with precision and calmness to significant recalls.
Aston Martin Recall Sparks New Supply Chain Strategy Discussion
The decision to recall its vehicles came as a result of the company discovering that plastic material from a Chinese sub-supplier was counterfeit.
Bill Michels, president of ADR North America, discussed the perils facing modern supply chains, and why long, complex distribution strategies, like Aston Martin, leave companies open to myriad issues like recalls.
To meet these new, leaner standards, companies must be willing to integrate their supply chain and business systems, and suppliers must align existing operations with buyer strategies.
If businesses take the additional step to increase supply chain transparency, all stakeholders, from the manufacturer to the store selling the product, will benefit. Supply chain management technology like mobile barcoding can help companies position themselves for sustainable, long-term success.
How Ford is Implementing Big Data into its Supply Chain
Bringing big data into the supply chain is not always as simple as buying the right software. A company first has to build a foundation of mobile data collection that can accurately record the information big data relies upon with software like mobile barcoding.
Ford is one company that plans on taking advantage of all the different tools available to optimize its supply chain. One of these tools is data capture – both using automated data collection with mobile barcoding software on the factory floor and by scanning incoming raw materials and outgoing finished goods as they exit the factory with barcode scanner software.
Think of these basic tools used at shipping points and on the factory floor as the foundation for everything that will happen in the future to revolutionize the way manufacturing is conducted at every level of the industry.
Why You Should Upgrade Your Inventory System
All businesses can benefit from a quality inventory management system, and the perks of a software upgrade are especially helpful for tire and automotive sales. To best serve customers, salespeople need to know about and be able to quickly find a particular tire amidst growing inventory.
Having an effective system in place that is easy for workers to use is crucial. Mobile barcoding solutions can empower your workforce with flexible, intuitive barcode scanning while automating traceability with each barcode scan.
This is also important in the event of a recall or audit.
Recall Readiness with Data Collection
Product recalls are something no company wants to face, but they may be inevitable. Even if safety precautions and policies are maintained to the utmost extent, it’s almost certain your business will have to deal with a recall at some point in time, and strict warehouse management techniques are necessary in order to minimize potential damage.
What can automakers do to minimize the effect of product recalls and make sure their customers are safe on the road? Detection, readiness, and prevention are key when it comes to staying compliant with NHTSA regulations and investigations.
Some automakers may issue recalls at a higher frequency simply to be cautious and proactive.
To stay ahead of potential litigation and monetary effects, automotive companies should:
- Have a plan. Make sure employees and business partners know what to do. Communication is key.
- Trace the product. Traceability software enables you to instantly locate recalled products and components.
- Make sure equipment is up to date. Routine maintenance is a must to avoid recalls due to faulty equipment.
Supply chain automation like mobile barcoding software can help with all three.
If you’d like to read more about the significant cross-industry impacts companies have experienced with mobile barcoding, visit our success story library.