AUTOMOTIVE
Supply Chain Software for the Industry: Where
Is It Coming from and Where Is It Heading?
The automotive industry has one of the most complex supply chains, upstream (hundreds of
parts and accessory suppliers) and downstream (thousands of car dealers, repair shops, etc).
Most, if not all, automotive manufacturers use different software systems in different loca-
tions, but even at the same location, for different purposes. Often, these systems are old or
incompatible, which makes integration difficult.
—Gabriel Gheorghiu, research analyst, Technology Evaluation Centers
hree types of business software for the automo-
tive industry can address supply chain functional-
ity needs:
• Supply chain management (SCM) systems for automo-
T
including SCM functionality in their products have adapted
their offerings for automotive industry players, including suppliers, dealers, and original equipment manufacturers (OEM).
Some examples are Oracle’s automotive products, SAP for
tive: Some SCM vendors have adapted their products for the Automotive, and IFS’s automotive software.
automotive industry by offering transportation or warehouse
According to a recent IBM study, it is not the software but
management, real-time visibility, etc. Some of them are: i2’s organizational barriers that make a lack of visibility the main chal-
solutions for the automotive industry, RedPrairie’s E2e solu- lenge for the automotive supply chain. In reality, it’s both, since
tions for the automotive supply chain, and the HighJump no software can work efficiently without well-defined business
Supply Chain Advantage suite for aerospace and automotive. processes and work procedures.
• Dealer management system (DMS) with supply chain
functionality: DMS are very similar to ERP systems, but were
The Outlook
specifically created for the automotive and heavy equipment The situation described above will probably not change signifi-industry and are used exclusively by dealers. Vendors like cantly in the near future. Car manufacturers will try to find new
Reynolds and Reynolds, ADP, Autologica, and Gemini Sys- ways to replace legacy systems and get organized so that their
tems have created interfaces with the systems used by car employees and partners can benefit from the latest advances in
manufacturers.
technology. The only major thing potentially happening is acqui-
• ERP systems with supply chain functionality for the auto- sitions of automotive software (DMS or automotive-flavored
motive industry: some of the major ERP vendors already SCM) by big ERP players like Oracle, SAP, Infor, etc.
