How to Develop ERP Software for the Automobile Industry?



The automobile industry is among the most versatile and competitive industries around the world and is developing every day with better advancement and technology. Keeping the current circumstances and rising global demand in the automotive industry in mind, it is wise that more and more companies are now investing in dedicated ERP software development able to help in operational management and organizational structure accurately. It is very difficult to imagine the modern automobile sector without technological advancement as there are several challenges included such as consumer data, equipment management, and electric automobiles, etc. Hence, the survival and growth of the manufacturers and sellers are dependent on the ability to adopt the new technologies and less manual labour for operational tasks and documentation. This way ERP can accomplish these tasks in a more reliable manner. 

If you are into the automobile sector, here is everything you need to know before developing ERP software for automobiles.

The Popularity of ERP Software 

ERP software development companies have witnessed a remarkable growth in the demand for dedicated Enterprise Management Software for business in the past few years. Being a widespread digital boom, the market of ERP software in an automobile is in constant expansion with a total market size of around $50 Billion by the year 2024.

In 2019-20, the global ERP statistics grew by 11%, leading to a worldwide value of around $40 billion. Whether for administrative tasks, automobile manufacturing, or inter management operations, the automobile industry contributes around $3.9 billion, which is estimated to grow around $9 billion by the year 2026.

With such a huge estimation, companies and manufacturers are looking forward to embracing software development to accomplish tasks and have a clear vision for a better business.

What is ERP and Why Do the Automobile Industry Needs ERP?

ERP or Enterprise Resource Planning software is a key enabler for an organization to manage its operations into various departments such as manufacturing, inventory management, HR, documentations, business data, and insight with real-time supervision. Designed for multiple users with dashboards and authentication processes, it helps in secure data management and automated scheduling to avoid any delay in the flow of information. 

When it comes to the automobile industry, here are the reasons to build ERP software for the automobile.

Reasons to need ERP for Automobile

1. Time & Money Saving

The ERP system for automobiles allows you to reduce quality cost by reducing manual labour, which saves time and money in the long run. Also, the quality assurance management feature helps with real-time data analysing saving a lot of time and effort.

2. Enhanced Collaboration

Improving collaboration and communication, ERP software combines data from different systems and allows various teams to optimize the information in a detailed and secure manner.

3. Detailed Analytics

ERP system for automobiles provides detailed analytics of monthly and daily operations based on inventory, manufactured parts, and so on.

4. Increased Productivity and Less Delay

ERP software offers automated business processes and real-time document storing which increases the productivity of different teams working on-site and off-site. 

5. Better Customer Support

For automotive firms, the aim is to increase internal business operations and sales so that it grows to another level. ERP system helps with CRM, improving marketing and communication with the clients that lead to increased customer support.

6. Equipment Management

Automobile ERP systems help in streamlining equipment, allowing you to avoid record issues such as equipment data, auto parts, and more.  The software also coordinates in the utilization of the equipment with the beginning of production helping you manage the inventory of raw materials.

7. Automated Tasks

Another way an ERP makes the operation more suitable for automotive manufacturers is by keeping records of materials specifically with the start of production. Automated processes by ERP software help organizations with better production and fewer damages. 

This also provides accurate data rather than relying on guesswork and calculations.

There are also other features involved such as payroll management, training program, chat options and data files format etc. Depending on your requirements you can utilize the most essential features for your ERP software development.

Must-Have Features of ERP Software for Automobile Industry

Features for Automobile ERP Development

Whether you are into manufacturing or automobile selling, to execute the necessary activities in any auto-related industry, your ERP software development company should include the main features, enabling you to make the most out of your ERP software. Here are the must-have features of ERP software for the automotive sector.

* Mobile Compatibility

To access the information and business documents at any time and anywhere, the primary requirement is to have a Mobile friendly ERP software with all the functionalities to process the dashboard remotely.

* Manufacturing Support

For any automobile company, manufacturing support is a must to balance between manufacturing and inventory processes. By choosing ERP for the automobile industry, you can ensure benefits like goal setting features and manufacturing schedules with easy integrations and support.

* Financial Module

With a robust financial module in ERP software development, you can meet your financial goals, get business reports, and understand tax requirements in an easier manner possible. With a single module, your team can manage payments, banking, accounting, and tax contributions. This is among the most important features to reduce costs and improve profits through a dedicated ERP system.


Another important part of your automobile ERP software is the Customer Relationship Management integration to keep a record of the marketing, sales, and customer support. A feature-rich CRM helps in gathering information under a single system and allows different departments to collaborate and address the needs of the end-users and clients in the automobile industry.

* Inventory Management

Another important feature to be considered while developing ERP for the automobile sector is inventory management. Unlike other commercial sectors, the automobile has a vast area of equipment management such as auto parts, designs, refurbished models, and more. Having an inventory management system with packaging information can save a lot of time and money of keeping records and handling data.

* Audit System for the Business

To trace auto parts and ensure manufacturing operations, you need strict regulations and standards set by governmental organizations. Automobile ERP software helps you easily track parts, supply chain, production management, and regulation updates, and more under a single feature. In other words, ERP has complete information about what’s happening between execution to the final product delivery.

How to Build an Automobile ERP System?

Development Process for ERP

Now that you understand the importance and benefits of ERP automobile software, here are the main steps of developing a successful ERP software.

Steps 1- Understanding Business Requirements

First and the foremost thing during ERP software development is to identify the challenge you are facing while running an automobile business. Once you have shortlisted the problems, you will be able to find the right solutions and requirements needed in the ERP software. Once done, you can move ahead with your development team and discuss your specific requirements and budget.

Steps 2- Wireframing & Designs

The next step is to ask your development team to come up with a wireframe and design drafts to be implemented in the ERP software. Here, your developer will take the lead and create a roadmap to be followed while creating a successful ERP software aligned with your requirements and modern design based on functionalities, CRM, UI/UX, and more.

Steps 3- Choosing Technology

The automobile is a versatile industry with a wide range of production responsibilities. Hence, you need to make sure that the ERP system runs smoothly and offers the right management feature. By choosing the right technology and toolkit for developers, your developers can serve with better support and maintenance from time to time. Options like cloud server with programming languages like JavaScript and Node.js for backend ensure secured data exchange and support for all file formats.

Recommended Reading-

Which Industries Require ERP Systems for Management and Why?

Steps 4- ERP Development

While moving on to the main implementation part, the main features to be executed are the admin panel and dashboard that enable the administrator to manage, schedule, and supervise all the internal tasks without many complications. With a brief of dashboard requirements, you can ask for a comprehensive admin panel dedicated to various departments. Once done, all the features mentioned above with basic ERP features, the development takes place with the front end, back end, UI/UX, and so on.

Steps 5- Integrations 

ERP software is a complex development process that needs multiple sections to be tested at the same time. With a web-based ERP system, developers review and test if the software is working smoothly. CRM integration is another big step before jumping onto the data migration process.

Steps 6- Data Back-Up & Recovery

Automobile manufacturing companies have a huge database and transactional documents that need to be kept secure. An ERP system involved a large amount of international and national schedules, products database, distribution data, and whatnot! 

To keep it safe and secure, the development includes data backup and recovery features to prevent data leak and theft.

Steps 7- Testing

After the implementation of all the integrations of the essential features, functionalities, technologies, and more, the final testing is the most important phase to check if the software meets all the requirements, and is compatible as per the market standards to work with. To complete the testing, the in-house development team tests the programs and uses it for a few days to identify any bugs and technical errors. Data management, features, changing compliances are the things that need to be best before the final delivery.

How Much Does an Automobile ERP Implementation Cost? 

One question that occurs while developing an ERP software solution is how much does it cost to develop automobile ERP software? The question is fair though, you are going to invest in a digital asset to manage things accurately. However, there are many factors involved while estimating the overall development cost of ERP software.

  • Requirements & Users

Not everyone has the same requirements for their ERP system. Some might need a small system to manage internal business processes or a large-sized manufacturing and distribution process. Since most of the automotive companies need essential features and data recovery features, the cost may range from $2,000 to $20,000 per software.

  • Third-Party Integration

Third party integrations enhance the performance and applications of an ERP system for a specific purpose. These add-ons typically increase the development cost up to 10% of the entire software development cost. 

  • Implementation Cost

Whether you choose an in-house team or outsource the project, every company has its cost structure depending on the experience, expertise, and popularity. The better services you get, the more you will be paying for the development. However, all you need is a successful ERP software that helps you with the best features.

  • Location

Locations of the development agency play an important role while determining the overall software development cost. For example, a local company might cost you less than a company from another country, depending on your currency. 

Keeping all these factors in mind, the overall ERP development cost for an automobile company may range between $50,000 to $750,000 including maintenance, support, and customization of the software

Find the Most Reliable ERP Development Company for Your Organization

To execute everything as per the plan, you must have a clear vision of new trends and system requirements to make the process profitable for the organization. Moving further, choosing the right ERP Software Development Company increases the chance of getting exactly what you are expecting. Although, the process of finding the right fit is daunting and challenging for people coming from a non-technical background. Still, you can research and come up with data and statistics to shortlist a few companies known for their services.

Talking about finalizing the best ERP software development services, Consulting Whiz is the name you can always rely on. With extensive experience in the software development company in the USA and vast ERP development expertise through the years, we ensure modern technology, advanced management features, and real-time data access at the most competitive development packages. 

Our dedicated team of Automobile ERP software developers in USA eagerly listen to your needs and perform accordingly, to deliver an impactful digital asset.

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