OEMs Corner: Spare Parts Cost Estimation Software from Intellinet

Everybody is an estimator in daily life. Generally, estimation is a computation of a value. Everyday people compute value in their heads, when they are grocery store or when they are on a petrol filling station. Like in grocery store a person is estimating the number of hot dogs he’ll need for next two days, and there are no more hot dogs left. Anybody will survive if there are no more hot dogs left. But what if thousands of dollars are at stake in the same estimation process? When estimation is the way to determine, whether your company will win a contract or not, would you be interested in using same traditional method? The answer would be No.

The Reality of Estimating and Methods

Its 2019 and we are living in a fully advanced and fairly technological society. In various sector, companies are using estimation software, so why automotive is not? From the past few decades, I have noticed the work process of manufacturing units closely and found that to achieve accuracy in cost estimation, they are still using excel sheets.Let’s have a look at few more technical methods:
Here are the top 3 estimating methods I have seen, that are used in the automotive industry for parts and cost estimation:

Experience
This is the most common method for cost estimation. In this scenario, when a customer comes to dealer with defective vehicle, the most experienced person like having experience of 10-15 years in spare parts industry, comes forward. He prepares to start estimation with his team, but fails in this situation sometimes, because people on the estimation team have different level of experience. Their best estimate will eventually lead to inconsistencies from one to another. This is most common problem with this method is when it comes to move on for experienced estimator.

Historical Data:
In this method of cost estimation authorized dealers, rely on the previous data or the job done on same vehicle in past. May be there are similarities with the vehicle, but this methods falls too. In this method, various things are overlooked – like tolerance, parts of vehicle are not same as due to model up gradation some parts are not so similar anymore and dealers have underbid that job, that leads to that particular job lose or profit lose.

Spreadsheets:
The use of excel sheets is the most common methods, OEMs and dealers use to search parts and their cost. From first angle the things seems right in this method, but on the other hand if I see the other two estimation methods, there are still speed issues, accuracy issues and consistency issues related with this. So, what’s the latest and advanced solution for authorized dealers and OEMs in the automotive industry? How can they increase speed and increase accuracy and eliminate errors? Here, is the answer-

The Intelligent Solution for Parts Estimation
It‘s 2019. Today manufacturing OEMs use software for everything like- part searching and tracking, and warranty management, keeping records etc.! So why same OEMs are settling on outdated methods when it comes to spare parts estimating? Is it not a critical aspect of spare part business? With a fraction of the effort and cost required to get some of those other software programs implemented, OEMs could be on their way to incorporating a parts estimating tool, that is able to produces winning, profitable results. In fact, smart OEMs start getting good ROI within few months of parts estimation software implementation.

Parts Estimating Software Considerations
Intellinet developed this spare part estimation software that is fully customizable. The software is specially prepared by keeping in mind the needs of automotive parts manufacturers and their authorized dealers and has various advanced features. OEMs may find some other parts estimation software in market that may fit their current needs and requirements, but they will not be able to fulfill needs of future and after sometime, OEMs will search for new parts estimation software for their organization. So, why waste time when you are already getting such software. Still, if an OEM wants to confirm about some features, below are few of the most common features of Intellinet parts estimating software, which will help OEM in better evaluations:

• Database Driven: Having a database driven tool means easy retrieval of part information from OEM end also. This will not only bring standardization to the process, but it will also allow to retrieve info about a specific area in one go.
• User Friendly: The software has a very easy to use GUI and doesn’t require any special training before trying hands on it. Anybody with basic computer knowledge in the organization will be able to plan and execute process successfully.
• Configurable: The software is good enough that allow OEMs to customize it according to their needs and requirements. Rules and data can be customized according to latest requirements and in a very user friendly way. Isn’t it good enough?
• EPC Integration: It is not easy to find software that can be easily integrated with existing EPC (electronic part catalogue) software. Parts estimation software has this capability and can save OEMs from double entry and will definitely save time and revenue of the organization.

I hope these points are enough to help an OEM in taking better decision. If you are an OEM and really want to improve organization process to save the bottom line from drastic effects then spare part estimation software is the only choice. And if OEMs are not using it currently, surely at a point they will feel that they are trailing behind. Intellinet have been in the automotive software business for more than a decade and must have been doing something right. But again the real question you could ask yourself, how much better you could do with your business after implementing spare parts estimation software?

If you wish to know more about the software, just connect to ww.intellinetsystem.com