Automotive Industry
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Intelligence is the ability to adapt to change – Connectedness/Understanding/Responsiveness

Automotive
Strategic Priorities of Auto industry

Organizations today have the knowledge as to how their operations are running, as they are capturing operational data of complete supply chain from buying to manufacturing, and transferring to customer with promotional and advertising activity. They are able to see one aspect of the business, but need to have the data of social and customer behaviour patterns and experiences to influence the business strategy. From research it has been found that technology changes and enhancements will drive the customer perceptions & expectation in automotive industry for vehicles. Automotive industry needs to convey technological changes in their business processes urgently in:

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Hardware & Industrial designs-build small products

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Digital Supply Chains & Customer central models

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New Business Models and Mobility solutions

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Dynamic & Changing workforce

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    Hardware & Industrial designs

    Advanced sensors, telematics, etc., electric motors & advanced batteries. New modular bodies, advanced user interface.

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    Build small products

    Build innovative design in products like new embedded sensors & software improving the overall product lifecycle.

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    Digital Supply Chain

    Full integration of the entire supply chain process from suppliers to the customers, to eliminate and prediction of supply and demand fluctuations, such as fleet operations, transportation management.

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    Engaging a changing workforce

    The digital technology has increased the demand for smarter products which require skills in software development, machine learning, artificial intelligence, etc.

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    Customer Centricity

    Need of the hour is Customer centric product; needed to be developed for new ERA Market, thereby to meet customer expectations. Need for a continuous feedback mechanism, and the good customer experience builds loyalty helps in customer retention and predicts the customer interests.

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    New business models and mobility services

    Most of automotive revenue shall come from transportation as a service, shared mobility and other digital services related to automotive. Software changes- Apps and services – Mobility & data analytics feeding the manufacturers with real-time data.

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S4 HANA - Addressing Industry Challenges
Issue Challenges S/4 HANA Solution

Sustainable Innovation

  • Design & Innovative products time to market
  • Heterogeneous engineering & manufacturing inefficiencies
  • Handling configuration model is complex & costly
  • Reusable, searchable history product development
  • Enterprise product engineering with FIORI
  • Optimisation of complex MRP, 360-degree product views

Manufacturing and Logistics

  • Planning inefficiencies in batch runs, no real-time demand changes.
  • System locking behaviors leads to delayed material postings.
  • Timely filing of customer orders.
  • High cost of ownership ATP functionality in ERP, requiring usage of third-party software products.
  • Overhead costs management in managing multiple plant shop floor activity.
  • SAP S/4HANA offers live MRP-10 times faster & multiple times MRP runs.
  • Facility of real-time inventory management & materials valuation. The data model is simplified, “principle of one” valuation.
  • SAP HANA databases enabled mass product availability check for sales orders, production planning & control.
  • Single system & database for Digital core of SAP S/4HANA ERP and planning functions.
  • Global traceability of entire supply chain of business.
  • The combination of SAP S/4HANA, SAP Manufacturing Integration and Intelligence (SAP MII), and SAP Manufacturing Execution offers an end-to-end process integration.

Marketing, Sales and Aftermarket

  • Lack of visibility into the order management process
  • difficulties in monitoring order-to-cash performances
  • Struggling with the complexities of the user interface for the comprehensive process
  • difficulties of selling low-availability products
  • sales order monitors and prepare a prioritized list with an outstanding order based on real-time analytics
  • SAP HANA allows end users to do the full-text searching for business documents
  • advanced ATP helps the user with new strategies for high volume, backorder processing and confirmation on business priority
  • SAP S/4 HANA Customer complaints & Returns Management

SAP S/4HANA –Finance harmonization across heterogeneous landscapes

  • Real-time replication of financial (FI) and management accounting (CO) postings from several source systems into a central simple finance system
  • Document drill back to the original FI document in the source system
  • Replication of cost objects (production orders, product cost collectors, and internal orders) from source systems to the central system
  • Mapping functionality for harmonization of master data before posting into central finance
Solution

Process Streamlining: Streamlined automation of their production operations. Integrated Analytical tool was designed which enhanced the planning and scheduling capability of resources, production capacity planning by applying historical and projected demand. MRP tool improved the complete supply chain processes -purchasing, scheduling and productivity to meet customer demands while maintaining lean inventory practices.

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    Improved Planning & Control

    Increased exhaustive and granular production planning, resulting in better visibility of production plans, supply, and demand

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    Reduction in Dead Time

    Reviewed and improved “takt time”. Reduction in the rate of time to create the product to be delivered to meet expected customer demand.

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    BOM & Routing rationalisation

    Advancement in modular assembly allowing easy scalability & adaptability of shop floor activities

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    Supply Chain metrics

    Production supply improvement; digitalised solutions promoting just-in-time component needed availability.

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    Bar Coding and tracking

    Scalability & Reaction time to delivery of product against customer demand was improved.

Top Benefits Achieved
  • Increased capacity utilisation across all the Production Plants
  • Increased Variant numbers per single assembly flow
  • Improved Supplier relationship, due to batch tracking of raw products from customer finished products
  • Safety stock & reorder level configuration improved the Material requirement Planning (MRP)
  • Fine tuning of report led to improved decision making and improved supply chain metrics
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