Why is the Automotive Industry Heading Towards SAP S/4 HANA Solutions
11-Nov-2019
 

Why is the Automotive Industry Heading Towards SAP S4 HANA Solutions (1)

You must have heard or read about Industry 4.0, which is the fourth technological revolution. Industry 4.0 has also paved the way for digital transformation, allowing about 2000 manufacturers to reduce 86% of their production costs, according to the PWC report. The companies are looking to implement the best digital practices, innovative technology, and cloud solutions to get an upper edge over their competitors. The automotive industry is no exception to that.

Founder of the World Economic Forum Klaus Schwab says that an advanced integrated ERP system and intelligent business suite SAP S/4 HANA services are ready to transform the automobile sector. It has been designed on a next-generation in-memory platform offering a customized user experience along with SAP Fiori. The in-memory platform has become the focal point of the business providing exact analysis and business predictions.

Let’s have a view of important statistics and understand how SAP S/4 HANA has transcended the automobile industry.

  • First, S4 HANA can reduce your manufacturing by 15% as machines and tools are digitized and its usage can be traced in real-time.
  • The ERP solution streamlines the supply chain by 12%.
  • The material requirement planning process gets faster by 95%, which helps in the timely delivery of the products.
  • SAP S/4 HANA also ensures an increase in new product revenue by 20%.
  • Customer Satisfaction is enhanced by 20%.

Major Challenges Faced By Automobile Industry

The technological convergence and digital transformation have indeed made the automotive industry competitive. We have seen the evolution of technologies like Artifical Intelligence and real-time computing that have introduced driverless cars. Moreover, the advancement in manufacturing execution has also decreased carbon emission.

However, at the same time, a Mckinsey-based report suggests that all these transformations have surged customer experience. Most car manufacturing companies have to bring changes in hardware, software, and other business models. The companies today need to focus more on research, development, and engineering.

Another key challenge is related to fleet operations and transportation management. The manufacturers have to implement new designs with attractive and comfortable interiors that enhance the driving experience of the customers.

Role of SAP S/4 HANA in the Automotive Industry

SAP S/4 HANA is an automated tool that allows you to establish enterprise connectivity, manage product compliance and much more. In addition, the vehicles are connected to GPS and other smart communication systems helping to find a location in real-time. That means intelligent data insights and analytics play a key role in the research and manufacturing process. The data helps to innovate your business process with smart decisions.

Transform Your Ideas Into Reality

An automobile architect or designer first comes with an idea, which includes the exterior and interior design, preparing the appearance of the vehicle. However, you need advanced software to translate your ideas into successful innovative products and that SAP S/4 HANA proves to be a worthy asset. You also need to plan out your budget estimate so as to execute a project along with framing an efficient product development and configuration strategy. You can achieve this through SAP S/4 HANA Cloud for Intelligent Product Design.

Streamlining Manufacturing and Logistics

SAP S/4 HANA experts have eliminated the planning and production inefficiencies, allowing automotive manufacturing companies to remain up-to-date with the latest manufacturing networks and operations. Furthermore, it has allowed the companies to create a much safe and risk-free work environment for the workers through the implementation of the SAP Connected Worker Safety tool.

The advanced software such as SAP Digital Manufacturing Insights and SAP Manufacturing Execution provides holistic analytics across all production operations and digitalized solutions to get customized KPIs and improve performance. SAP Manufacturing Execution lets you incorporate the Industry 4.0 technology with ease, driving cost-efficiency and optimum quality.

Automating Supply Chain Networks

It is important for you to create a robust and effective supply chain network to manage demand and achieve higher productivity. SAP S/4 HANA lets you track the digital components and manufacture 3D printing for the spare parts. Apart from that, it helps you to gain more visibility into the supply chain management via an automated network.

Supply chain management creates key metrics so that you can easily identify the production bottlenecks and remove them. It also plays an essential role in establishing a strong collaboration with the customers and suppliers.

Adopting the Latest Marketing and Sales Trends

S/4 HANA provides you useful insights on collaborating internal sales and allows you to monitor the new sales order so that you prepare a priority list based on the order management process. You can increase your revenue, improve personalization through search navigation, manage all product catalogs and digital assets using advanced omnichannel commerce management. Optimize your marketing tactics and sales lead generation with an embedded S/4 HANA analytics. The sales manager can keep a track record of the number of vehicles manufactured in a particular period and the total number of cars sold at that time.

Smart Mobility Solutions

The introduction of smart mobility services and applications has escalated the user experience where customers can send their valuable feedback after using the new car. You come to know which are the newly introduced key features that have impressed them and what aspects need to be addressed.

On An Ending Note

When you approach an expert SAP Business Consulting Services to digitize your automotive industry with S/4 HANA, be sure to leverage a wide range of benefits. It accelerates the innovation of the product, reducing the manufacturing cost. SAP S/4 HANA streamlines supply chain management and allows you to implement industry best practices during production and sales management.