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Meet the latest solutions that SAP offers end-to-end from the supplier’s supplier to the end user in the rapidly changing Automotive industry.
The automotive industry is on the verge of a significant transformation. With the transition from gasoline and diesel vehicles to electric and hybrid vehicle technologies, the rules of the automotive industry are being rewritten.
With new technologies such as automation, artificial intelligence, the Internet of Things, and big data, production processes and vehicles are becoming smarter every day. As automotive manufacturers strive to adapt to rapidly changing consumer behavior and business models, many suppliers must keep pace. During this transformation process, part supply has become much more complex, with the assembly of thousands of parts in very short production times, reshaping various intricate business processes such as 3D modeling, design, after-sales support, and dealer integration.
A comprehensive transformation from fossil fuel vehicles to electric and hybrid vehicles is taking place all over the world. While the sector is going through this transition, it faces challenges such as infrastructure deficiencies, the cost of battery technology, and insufficient charging stations. Stopping the production of existing fossil fuel vehicles and switching to electric vehicles requires a huge investment and engineering effort for the automotive industry. On the other hand, new technologies such as automation and artificial intelligence improve production processes, making vehicles safer and smarter. These technological advances and fundamental changes are transforming workforce dynamics, and some traditional methods and ways of doing business are becoming obsolete.
In order to respond competitively to ever-changing consumer preferences, companies in the sector need to re-evaluate their marketing strategies and product portfolios. For example, the increasing demand for urban mobility services has led to the emergence of new business models such as shared mobility and subscription-based vehicle leasing. However, these changing market dynamics make it inevitable to focus on new areas such as autonomous and connected vehicle technologies in addition to traditional sales and after-sales services. The global automotive industry faces intense competition among major car manufacturers, new technology companies, and local ventures. This competition encourages innovation but can also lead to narrow profit margins and rapidly changing market conditions. Automotive companies must continuously develop new products and services to maintain competitive advantages and increase market share.
The automotive industry relies on a complex network of parts and components from suppliers in different parts of the world. Any disruption in the supply chain could result in interrupted production processes and vehicles not being delivered on time. Moreover, global events (e.g. natural disasters, political conflicts), logistical problems and raw material shortages further complicate supply chain issues.
The automotive industry is subject to various regulations, especially concerning emission standards, safety requirements, and data privacy. These regulations can impact the design, manufacturing, and sale of vehicles and increase compliance costs. Furthermore, differing regulatory standards in different countries can pose additional challenges for global automotive companies in adapting and competing.
SAP solutions for the automotive industry enable innovative management of all processes starting from design, optimize production lines with optimal supply and inventory planning, and offer global flexibility and responsiveness with an integrated supply chain management.
It is possible to manage all processes starting from design with the most innovative SAP solutions! 3D modeling, new vehicle design, part changes, engineering change management processes are no longer complicated with the latest SAP products.
Optimum supply and inventory planning according to market forecasts and planning the most suitable vehicle mix for production lines are perfected with SAP IBP solutions.
With the SAP S4/HANA solution implemented by IMPROVA, you can make your supply chain, which includes all business partners from parts manufacturers, suppliers, transporters to customers, including all locations involved in the process such as warehouses, factories, distribution centers, dealers, faster responding and more flexible against global risks and shocks.