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Digital Transformation Shapes Automotive Industry

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Automotive sector is one of the leading sectors providing high added value to the local and global economy. This industry, which is among the sectors with the highest share in global trade, can be considered as the driving force when it comes to technological developments. Thanks to the investments made in the field of technology, the automotive sector, which has always achieved to stand out compared to other sectors, benefited from digitalization in processes such as product & service design, production, pricing and customer service.

Digitalization of production and services, autonomous vehicles and new vehicle technologies working with alternative energies are indicative of the rapid transformation of the automotive industry in the coming years. Consumer expectations and changing business patterns that have been transformed with digitalization have ultimately affected the entire ecosystem of the automotive industry, from R&D processes to production, after-sales services and insurance. In this context, digital transformation, which has become compulsory, is one of the most important steps taken by the players of the competition in the competition.

Digital Transformation of Automotive Industry

  • Communication between New Generation Supply Chains and Manufacturers and Suppliers Should Be Integrated
  • Electric and Hybrid Vehicles – Manufacturers Transforming Design and Manufacturing Processes
  • Internet of Things (IoT) – Where Does Pieces Come from, Where Do They Go?
  • Industry 4.0 – Integrity Across the Entire Production Chain

Industry Transforms with SAP Solutions

Collaborative product innovation

Fragmented R&D departments are unable to deliver desired innovations quickly and with high quality. Collaborate in real time across globally dispersed product design and engineering teams in a sustainable ecosystem.

Manufacturing and logistics

Global manufacturing inefficiencies cause high costs in inventory and logistics. Achieve efficiency by aligning stakeholders, assets, and processes across engineering, supply chain, and manufacturing operations.

Responsive supply network

Volatility, increasing complexity, and interdependence within global supply networks challenge supply chain efficacy. Integrate supply chain processes across interdependent networks to deliver real-time visibility and seize opportunity while detecting and avoiding risk.

Marketing, sales, and aftermarket

Informed and demanding customers, along with increasing competition, place high pressure on profit margins and optimized service. Delight customers with a simple, unique, and pleasurable buying and ownership experience.

Digital services

Without leveraging digital data business models are static and uncompetitive, business processes are rendered inefficient and not agile with no added value realized from big data. Leverage data-driven intelligence that combines technology, sensors and vehicle data with applications and practices to establish new business models and improve profitability and customer satisfaction.

SAP Ariba: Digital Procurement and Supplier Management

Supply chain management and logistics processes are vital for the automotive industry. Optimizing the management of the domestic and international supply network creates positive effects up to operational processes and consequently to after-sales customer service. If you answer “NO” to at least one of the following questions about your procurement processes, SAP Ariba is the right solution for you.

  • Do you manage your procurement processes centrally?
  • Are your suppliers seamlessly integrated into your procurement process?
  • Are you fully utilizing the efficiency and cost benefits of digital channels?
  • Do you negotiate with suppliers on the basis of reliable comparisons?
  • Do you have tight controls and standardized processes?

More Efficient Procurement Process with Ariba

With more than 2.5 million participants, SAP Ariba is the world’s largest digital marketplace for communicating with suppliers. The system allows users to manage their procurement processes completely digitally and centrally. The solution caters to companies who want to make the entire procurement process more efficient from purchase to billing.

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SAP Solutions at Every Stage of Automotive

Collaborative Product Innovation

  • Project and Portfolio Management – Reduce costs and improve efficiency and time to market for projects, portfolios and resources
  • Design Orchestration – Shorten development times, reduce material costs and enable smoother production ramp-ups
  • Product Safety and Stewardship Network – Manage global product safety and compliance throughout the product

Manufacturing and Logistics

  • Operational Excellence – Optimize asset ROI, reduce downtime and improve performance through the complete asset lifecycle
  • Operational Procurement and Inbound Logistics for Direct Material – Supply production reliably and efficiently
  • Responsive Manufacturing – Achieve continuous improvement and implement lean processes across manufacturing and the supply chain
  • Sequenced Manufacturing – Manage orders for highly configured vehicles by integrating operations across the supply chain
  • Outbound Logistics – Integrate production and outbound logistics to quickly meet customer demands

Marketing, Sales and Aftermarket

  • Contextual Marketing – Create individualized customer engagements using real-time contextual marketing
  • Dealer Business Management – Enhance sales and service processes, streamline business operations and improve customer relationships
  • Vehicle Sales Management – Optimize vehicle distribution chains to improve vehicle sales, streamline vehicle-ordering processes
  • Collaborative B2B Management – Turn each sales interaction into a flawless customer experience with collaborative B2B sales management
  • Omnichannel Customer Service – Delight your customers, provide streamlined support across any channel and create new revenue
  • Omnichannel Commerce – Drive revenue with contextual and consistent experiences in each channel along the customer journey

Digital Services

  • Vehicles Network – Deliver both customer-friendly and profitable digitalized vehicle services with connected vehicles business network
  • Vehicle Insights – Drive new business models with actionable vehicle insights
  • Ridesharing – Reduce carbon footprints and employee travel costs with ridesharing

The automotive industry is faced with new challenges

  • Demands for greater spread and agility are now straining operational models
  • Consumer expectations are rapidly changing toward services and business that are connected
  • New technologies, new capabilities, and new transportation concepts are enabling competitors to enter into the automotive ecosystem
  • Demographic-driven shift from boomers to millennials requires developing the skills of a younger workforce with different expectations

Businesses must be reimagined

  • Develop systems and vehicles that connect and interact with the vehicle’s environment
  • Connect production and logistics intelligently from the shop floor to the rest of the business
  • Develop the capabilities to successfully attract, recruit, onboard, train, and retain highly desired technology-focused talent
  • Keep the customer front and center during every interaction with your brand, products, and services
  • Leverage smart and connected vehicles to monetize new service offerings to generate more revenue

SAP S/4HANA Takes You To Where You Want

SAP S/4HANA brings your company to the future as a digital transformation platform. How?

  • It provides a smooth and fast transition environment by preventing technological, operational and financial difficulties encountered during the merger and acquisition processes.
  • It helps to maintain employee loyalty and increase corporate income by ensuring that operational units continue to provide trouble-free service by eliminating the problems arising from the merger of companies serving in two different sectors.
  • Provides innovative services to your customers, including e-mobility. It helps you expand into new markets by entering new areas such as fleet operations to create new values.

More Useful Insights

Solution Brief
Meet it.automotive

In the automotive industry, added value starts from the supplier. Error-free logistics processes, supplier-customer relationship are very important for decision makers.

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