1. Analysis of the Current Status of China's Auto Parts Industry Since China's accession to the WTO at the end of 2001, automobile production and sales have maintained double-digit growth for several consecutive years. From the first time national automobile sales exceeded 3 million units in 2002, the industry surged to 8.8824 million units in production and 8.7915 million units in sales by 2007. With the rapid development of China's automotive industry, especially the investment and establishment of factories in China by many multinational automakers and the implementation of localized procurement policies, unprecedented opportunities have been provided for the rapid rise of Chinese auto parts companies. However, opportunities and challenges coexist. The auto parts industry is increasingly globalized, shifting from domestic competition to comprehensive international competition, and the natural advantages of domestic companies are gradually weakening. At the same time, Chinese auto parts companies also face competitive pressure from the industrial supply chain. In today's globalized economy, customer demands are becoming increasingly diversified and personalized, placing higher demands on the safety, environmental protection, and energy efficiency of automotive products. This has significantly impacted the technological content of automotive products and the speed of new product launches. Simultaneously, it also means rising production costs, overcapacity, and intensified price competition, among other issues. Consequently, higher demands are being placed on both vehicle manufacturers and parts suppliers, requiring parts suppliers to go beyond simply strictly controlling product quality through quality systems and to emphasize timely and punctual delivery. This shift necessitates that parts companies elevate their production management to a new level, synchronizing production cycles with vehicle manufacturers and moving away from the traditional inventory-based production model to provide real-time and efficient services to vehicle manufacturers. Due to the late start of my country's automotive parts industry, and facing intensified competition, problems have emerged in many areas. These include: logistics (severe inventory backlog and scrapping, frequent inventory shortages, reliance on stockpiling to meet demand, lack of effective control over external inventory assets, and uncontrolled work-in-process management); and cash flow issues. The problems include disconnection from business flow and logistics, untimely receipt and payment, inadequate monitoring measures, inability to trace original documents, unscientific management methods, excessive increase in personnel control, unreasonable budget, and incomplete budget basis; in terms of information flow, information is not timely, basic data is incomplete, and control processes are not rigorous. ERP (Enterprise Resource Planning) is a management platform applicable to manufacturing enterprises, built on information technology, and providing decision support for enterprise decision-makers and employees with a systematic management philosophy. Facing increasingly fierce international and domestic market competition, the full implementation of ERP in enterprises is the only way for Chinese auto parts enterprises to rapidly improve their core competitiveness and survive and develop. 2 Analysis of the characteristics of China's auto parts industry (1) Industrial structure of the parts industry. As vehicle manufacturers want to reduce costs and improve the competitiveness of their products in the global market, they are increasingly purchasing parts globally according to the QSPT principle (quality, service, price, technology), no longer limited to the interests of the group. In China's auto parts industry, foreign companies are mainly concentrated in the fields of electronic systems, chassis and engine matching with higher prices and higher technology content; while domestic companies are more concentrated in the fields of general parts and body parts with lower technology content, and the competition is fierce. Meanwhile, the global cost of automotive raw materials continues to rise, and vehicle manufacturers are passing on the pressure of price reductions from customers to parts manufacturers, resulting in severe profit squeeze in the upstream and downstream of the parts industry chain. (2) Technological development of the parts industry. The orders of parts companies often change, and companies need to quickly design products and adjust production to meet the changing needs of downstream orders. In order to adapt to the increasingly diversified market demand and seek a balance between economies of scale and diversification and personalization, the automotive industry has been improving the generalization, neutrality and standardization of parts, and sharing parts as much as possible to achieve larger-scale production and amortize the high development costs caused by the increasing number of models and the shortening product life cycle. (3) Delivery of parts industry. At present, in order to reduce the inventory costs of the final assembly plant, the general automotive manufacturers carry out lean production and require suppliers to implement "just-in-time" delivery. The final assembly plant will issue delivery instructions to the parts suppliers according to its own assembly plan, and the parts companies generally build production lines or set up warehouses near the final assembly line of the vehicle manufacturer to ensure timely delivery in order to quickly respond to the needs of the vehicle manufacturer. (4) Product quality of parts industry. To ensure the quality of final products, a "settlement at the source" production management and supply chain model is prevalent in China's automotive industry. This is an effective way for downstream companies to control inventory, thereby constraining the production quality of upstream companies and promoting "zero-defect" production across the entire industry. However, this also means that downstream manufacturers pass on inventory costs to parts suppliers. Therefore, for automotive parts companies, it is essential to manage inventory effectively and coordinate production and sales. This requires managing the inventory of each product and ensuring effective production and sales planning, meeting urgent customer orders while making reasonable use of internal capacity. 3. Basic Modules and Functional Objectives of ERP in the Automotive Parts Industry 3.1 Production Planning Management mainly includes Master Production Schedule (MPS), Material Requirements Planning (MRP), Capacity Requirements Planning (CRP), and Shop Floor Control (PAC). Through MPS/MRP calculations and capacity planning in ERP, companies can solve the problems of inefficient and unexecutable traditional manual planning, thereby optimizing procurement, production, and outsourcing plans. This ensures timely and appropriate production and procurement, effectively utilizes internal and external resources, and improves plan execution efficiency. 3.2 Material management mainly includes inventory management and procurement management. (1) Procurement management. Enterprises can strictly control the supply price of suppliers through the supplier price management module provided in the ERP system to reduce the procurement cost of enterprises; at the same time, they can make timely and appropriate purchases and track according to the procurement plan generated by the production plan management module, so as to meet the production needs of enterprises and reduce the inventory of enterprises; through the supplier evaluation system and procurement inspection, the quality of suppliers and supplies can be controlled. (2) Inventory management. Enterprises can know the receipt, issuance and storage status of certain materials at any time through the ERP system; know the materials that need to be inventoried and the inventory results in a timely manner; simulate the production ratio budget of existing materials at any time; reduce inventory to the greatest extent while ensuring production; and closely connect with the finance department to form an efficient posting measure. 3.3 Sales management mainly includes market forecasting, contract management, order management, etc. Enterprises can simulate product analysis and provide guidance and quotation through the ERP system; they can query the delivery time and available sales volume of products at any time and quickly provide customers with commitments to improve customer satisfaction and reduce order loss. Meanwhile, for the automotive industry, quality tracking is necessary for some key components. This requires not only internal inventory control by component manufacturers but also product quality tracking. ERP systems can closely link the entire process from raw material procurement, production, and delivery through batch number tracking. 3.4 Financial management mainly includes general ledger management, accounts receivable and payable management, cash and fixed asset management, and cost accounting. Through ERP systems, companies can quickly understand their assets and financial status; they can quickly calculate costs down to components, processes, products, and workshops, further improving the accuracy and detail of enterprise management and providing means for cost reduction. 3.5 Basic data management mainly includes basic data on enterprise products, customers, suppliers, and internal operations. Accurate data in the ERP system can solidify the foundation of enterprise management, achieve data sharing among departments, improve operational efficiency, and quickly respond to customer needs. 4 Conclusion ERP is a product of the combination of advanced management concepts and advanced information technology, and is one of the methods for Chinese enterprises to quickly establish a competitive advantage. The application of ERP systems in Chinese enterprises is increasing, but the success rate of implementation is not high. Some articles point out that the success rate of ERP implementation in China is only 10% or 20%. There are many reasons for failure. For my country's auto parts industry, companies must choose an ERP system that suits their own business, select a software service provider that can provide good service, increase the importance that companies attach to implementing ERP, and improve the success rate of implementation.