The auto industry is known for tough competition and fickle customers. Survival depends on bringing new models rapidly to market as economically as possible. A Management Information System (MIS) uses computer-based information systems to make data flow seamlessly among different parts of the organization; streamline work flow; and create electronic linkages with customers, suppliers, and other organizations.
For the auto manufacturer, MIS helps automate and streamline all of its daily business operations, gather sales data, adjust deliveries of parts; and assists production units to make exactly the right amount of vehicle models, color, and option packages which are actually selling in dealer showrooms. In short, MIS helps the auto manufacturer to anticipate the quantum and the type of new vehicles to manufacture. MIS also helps the auto manufacturer to deal with its inventory of parts.
The output would consist of orders to suppliers specifying the quantity of each part or component that was needed and the exact date each part was to be delivered to the auto manufacturer’s production facilities to produce the vehicles that customers have ordered. The system provides meaningful information such as what models, colors, and options are selling in which locations; the most popular models and colors; and which dealers sell the most cars and trucks. MIS helps the auto manufacturer to design new vehicles much faster and remain competitive, agile and adaptive to customer demands.
For the customer, MIS is all about receiving a good pre-purchase experience, good after-sales service and ultimately customer satisfaction. From the moment, the customer decides to purchase a particular model, the dealer is able to tell him/her if the model is available in the option he/she would like and when it can be delivered; and in some instances even provide customization according to a customer’s specifications. After the sale, a customer sending in his car to the service centre would be able to see its past history i. e. hen a part was replaced, and which part is in need of replacement or service soon. For the dealer, a well-developed Customer Relationship Management (CRM) type of MIS creates a better dealer-customer relationship. This encourages repeat purchase and brand loyalty. MIS empowers the dealer to monitor and to respond instantly to changes and to meeting the demands of a customer, to remain competitive, efficient, and profitable. Once a sale is closed, it is entered into the system. The process is immediate, cuts down on paperwork and wastes no time.
This allows the salesman at the dealer to ‘move-on’ to the next customer faster without any ‘down-time’. MIS is also able to help a dealer in cutting down overhead expenses with a lower head-count in staffing. The auto industry (and almost every industry) relies on information systems every day to conduct business – to survive and prosper. Survival and even existence without extensive use of information systems is inconceivable. It is a foundation for business in the twenty-first century. Where a business would like to be in five years into the future often depends on what its systems will be able to do today
