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Page 1: SAP AUto BWP SAP Automotive Overview

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SAP® FOR AUTOMOTIVESALES AND SERVICE: INDUSTRY OVERVIEW

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“With the end-to-end SAP system, we have greatly improved the way we

serve our global dealer network while achieving faster financial reporting

and fewer purchase order errors. SAP for Automotive solutions are helping

us reduce complexity across our global operations and will continue to be

key enablers of business change and profitable growth for Iveco.”

Mario Leone, CIO and Senior Vice President, Iveco

T H E C U S T O M E R I S C H A N G I N G

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. . . A N D S O I S Y O U R B U S I N E S S

SAP® FOR AUTOMOTIVEMAKES CHANGE EASIER

You don’t run a generic business. So why use generic solutions?

SAP for Automotive is a portfolio of state-of-the-art software solutions

tailored to the specific standards, processes, and challenges of the

automotive industry, including automotive manufacturers (OEMs),

automotive suppliers, and sales and service organizations. They are

built to fit the way you do business. And they comprise the industry’sleading and most comprehensive set of solutions, helping automotive

companies gain enterprise-wide visibility for better decision making

in critical business areas. SAP for Automotive solutions can help

your organization improve its operational efficiency, mitigate risk, and

increase profitability, while enabling innovative business models and

customer services.

Supported by the SAP NetWeaver™ platform, a powerful integrationand application platform, these solutions deliver rich functionality

and productivity-building tools throughout your organization.

And they help you adopt the best practices SAP has developed in over

30 years of working with major automotive companies and industry

leaders from around the world.

You can minimize risk and increase the reliability of your solutions

because SAP for Automotive provides the content, tools, andmethodologies you need to design, measure, analyze, improve, and

control your enterprise. And because they offer easy integration and

virtually unlimited scalability, SAP for Automotive is an investment

you can’t outgrow.

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R E A C H I N G T O D AY ’ S C U S T O M E R

“Every time a customer

comes in [for service]

it’s an opportunity

to win their loyalty –

but also to lose it.”

Steve McKelvey, Manager,

Ford Motor Company

PUTTING THE CUSTOMERIN THE DRIVER’S SEAT

In the automotive industry, companies face an ongoing struggle for marketshare, constant pressure on margins, and well-informed customers thathave unprecedented power in the marketplace. To differentiate themselves inthis competitive environment, many companies are focusing on sales andservice operations, which are key to providing a high-quality customerexperience.

With that in mind, companies must

automate processes and leverage inte-grated information to increase efficiencythroughout the value chain. They areseeking to build tighter links amongmanufacturers (OEMs), suppliers,distributors, and dealers to support theshift from production-driven “build-and-incent” models to demand-drivenpull models. And they are exploringways to increase collaboration acrossthe value chain to reduce costs, increase

profitability, and enhance their abilityto proactively address customer needs.

Creating a cohesive extended sales and service operation is no small challenge.Today’s customers have growing ex-pectations for selection, delivery, andservice. Dealer relationships are gettingmore complex, as dealers consolidateinto groups that often span severalterritories and brands. New entrants are

bringing more competition to the new-vehicle and aftermarket service business.And the management of service partshas become a daunting logistical chal-lenge involving huge numbers of itemsand stocking locations, varying demand,and frequent product changes.

It’s a complicated, dynamic environ-

ment, and sales and service organiza-tions frequently find themselvesworking with fragmented and disparatesystems – or even legacy paper-based processes. The result, too often, is poorvisibility into customer demand, highercosts, decreased responsiveness, and,ultimately, unhappy customers and dealers and eroding brand equity.

To help meet those challenges, SAP

offers SAP for Automotive, a portfolioof solutions designed specifically for theindustry. With SAP® solutions, motorvehicle enterprises can bring new levelsof flexibility, accuracy, and efficiencyto their operations. They can integrateOEMs, importers, distributors, and dealers to create a seamless channelthat reaches from manufacturer to thecustomer at the point of sale. Andthey can enable the entire value chain

to work in concert to reduce costs,increase profitability, and strengthencustomer relationships.

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“[SAP] had an industry-specific solution that would

provide the vehicle management system and the warranty

functionality we required. . . . That’s something the

other providers didn’t show us.”

Alan Cseresznyak, Vice President, Toyota Material Handling USA

. . . R E Q U I R E S S U P E R I OR S A L E S A N D S E RV I C E

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S U P E R I O R S A L E S A N D S E RV I C E

DESIGNED FOR THE INDUSTRY

Today, SAP for Automotive is usedby sales and service organizations atDaimlerChrysler, Porsche, Fiat, Toyota,Iveco, Caterpillar, Volvo CE, Volks-wagen Group, BMW, MAN, andGeneral Motors, among others. Theseleaders have deployed a portfolio ofsolutions that address the full range of

industry processes. The solutions givecompanies the tools to manage enter-prise processes in finance, humancapital management, and corporateservices – as well as lead and contactmanagement; the configuring, order-ing, and delivery of vehicles; andthe management of service parts,warranties, and customer service.

Manage Customer

Relationships –and the Company’s Brands

The SAP portfolio of solutions givesautomotive enterprises and theirdealers the tools to manage all aspectsof sales, marketing, and service cam-paigns and efficiently capture informa-tion about customer contacts, leads,and new prospects. It enables them totrack and analyze customer satisfactionand to support customer loyalty

initiatives using comprehensive data oncustomers, their vehicles, and businesstransactions – including leasing andfinancing information – covering theentire vehicle life cycle. And it letsthem quickly determine the value of individual customers based on sales,marketing, and service costs as well asthe customer’s revenue contributionover time.

Streamline theDistribution Channel

SAP for Automotive solutions offerpersonalized, portal-based applicationsthat enable sales organizations to col-laborate with all of their channel part-ners, while Web-based services makeit easy to integrate a dealer’s business

management system with those ofupstream partners. Organizations cananalyze and track sales leads and routethem to the appropriate channel ordealer. They can collaborate on every-thing from configuring and allocatingvehicles to ordering service parts and managing dealer and customer claimsand returns.

Take an Integrated, End-to-End

Approach to the Order-to-Delivery Process

SAP for Automotive lets OEMs anddistributors manage the forecasting,configuration, allocation, procurement,sale, and delivery of vehicles. Dealerscan search for, reserve, configure, order,and track vehicles – new or used – forstock and for their customers, and easilyfind configuration options appropriatefor their local market. An optimized

order-to-delivery process enables thedistribution supply chain to respondefficiently to customer requests.

Manage Import andDistribution Globally

In a global industry, many companiesuse private or subsidiary distributors tomanage the import and distributionof vehicles manufactured elsewhere.With the SAP Global Trade Manage-ment application, both exporters and

importers can facilitate shipping and logistics, and manage their port facili-ties and processes. Using integratedsolutions, they can create a seamlessprocess for vehicle shipment fromplant to port to distribution point ordealer – and give dealers and customersvisibility into that pipeline.

“SAP Vehicle Manager

is supporting our global

simplification and

harmonization efforts

by covering the offer,

order, and logistics

functionality involved in

the integration of our

vertical sales process –

from dealer to factory.”

Klaus Felser, Director IT Marketing

and Sales, DaimlerChrysler

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. . . R E Q U I R E S I N T E G R AT I O N

“The beauty of this is that we’re giving

the information to the dealers and

customers – the people that are in the best

position to make the decisions. That

will help us strengthen our relationships

with them over time.”

Alan Cseresznyak, Vice President, Toyota Material Handling USA

Streamline ServiceParts Management

SAP for Automotive can support today’scomplex service parts operations withpowerful planning, fulfillment, andlogistics tools. The solution lets compa-nies perform demand forecasting and easily handle procurement, distribution,

warehousing, and parts repair. And itgives them visibility into demand, partsinventory, supply, and delivery – theentire parts supply chain from supplierto dealer.

Handle Warranty Claimswith Efficiency and Accuracy

This collaborative solution enablesdealers, importers, OEMs, and suppliersto manage and automate warranty

claims processing for increased efficien-cy. They can process claims for severalbrands and multiple-warranty pro-grams as well as track returned partsand recover costs seamlessly and auto-matically. Companies can combinewarranty information with othercompliance-related data for compre-hensive analysis and defect reporting.And they can analyze campaigns,components, dealerships, and vehicles

to drive strategies based on an under-standing of factors such as parts failures,returned parts, fraud patterns, andparticipation levels for a given recallcampaign.

Enhance Management andService in the Dealership

The SAP Dealer Business Managementsolution – part of SAP for Automotive – lets independent, dealer-group, and company-owned dealers manage thefull range of automotive retail processesand create customer-centric businesses

that can consistently deliver high levelsof service. Using an integrated solution,they can manage inventory, marketing,finance, and new- and used-vehiclesales, and work seamlessly with part-ners to meet customer needs. They can

also handle a variety of after-sales ser-vice activities – coordinating customerbookings, scheduling service tools and equipment, and ensuring that parts areavailable when needed – while offeringvalue-added complementary servicessuch as extended warranties, insurancecoverage, and financing. And, as a

modular solution, SAP Dealer BusinessManagement comes ready to run and can be implemented quickly.

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I N T E G R AT I O N D R I V E S C O L L A B O R AT I O N

THE PAYOFF FOR SALES AND SERVICE

• Sales personnel – and even customersin the showroom – can configureand order vehicles and receive current

pricing and availability information.• Sales reps can locate individual vehi-

cles at any point in the distributionnetwork.

• Marketing can track customerinteractions over the lifetime of thevehicle.

• Quality engineers can identifyproblems with parts or processesand provide timely feedback to design,manufacturing, and purchasing.

• Service personnel can maintaininventories of common service partsat dealers’ premises and at distribu-tion centers to ensure rapid availabil-ity for customer service – or for saleor trade, dealer to dealer.

Overall, SAP for Automotive can helpsales and service organizations achievesolid business benefits, such as:

• Increased efficiency and reduced costs – with integrated informationand processes, the ability for partnersto collaborate on cutting waste, and less friction between dealer and brand operations

• Growth in the aftermarket servicebusiness – with the ability to monitor

With its industry-specific capabilities and comprehensive support for industryprocesses, SAP for Automotive helps sales and service organizations bring speed and precision to the entire demand chain. For example, SAP for Automotive solutionsprovide role-specific support for the following activities:

and control service more closely and improve service parts management

• Increased responsiveness to change – with better communication in thedistribution channel, improved plan-ning, and the ability to easily locateand deploy vehicles to meet demand

• Increased revenue and market share – with increased business flexibility,the ability to enter developing mar-kets and segments quickly, and animproved ability to identify and meetcustomer demand

• Improved customer loyalty and retention – with the ability to meetcustomer needs quickly and flexibly,provide superior service, and consis-tently deliver a high-quality cus-tomer experience

• Enhanced brand value – due to bettercommunication of and delivery onthe brand promise – and from beingan “easy-to-sell, easy-to-buy” brand,

thanks to an integrated, responsivedistribution and sales channel

• An improved ability to manageperformance – with comprehensive,integrated information, hourly and daily reporting (including profitabil-ity reporting), and sophisticatedanalytical tools that help executivesensure that business objectives arebeing achieved

“[SAP for Automotive]

puts the vehicle at

the center of our

ordering processes,

our customers in the

driver’s seat, and

our revenue cycle in

the fast lane.”

Mario Leone, CIO and

Senior Vice President, Iveco

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. . . A N D R E S U LT S

UNDERSTANDING BUSINESS VALUE

SAP for Automotive supports yourmost important business processes and provides tools to help you understand how these processes work. One ofthese tools is the solution map shownon this page.

Built using input from customers and industry analysts, plus the technicalexpertise SAP has acquired throughextensive business experience and research, SAP solution maps are multi-level blueprints of processes. They helpyou visualize, plan, and implement acoherent, integrated, and comprehen-

sive information technology solution.They also show how various processesare covered, including the processesthat SAP and its partners support.

With solution maps, you quickly under-stand business solutions and the businessvalue they can bring. The solution mapfor SAP for Automotive is available atwww.sap.com/automotive/businessmaps.epx .

The version of the SAP for Automotive

solution map for sales and serviceorganizations depicts key industryprocesses.

Sales & Marketing

Brand and Customer Management

Vehicle Life-Cycle Management

Channel Management

Leasing

Vehicle Management

Vehicle Planning & Foreca sting

Order to Delivery

Service Parts Management

Service Parts Planning

Service Parts Execution

Enterprise Management & Support

Analytics

Financials

Human Capital Management

Corporate Services

Operations Support

Customer Service

Interaction Center

Service Operations (Retail)

Warranty Management

Fleet Management & Retail

OEMs & Suppliers Procurement Sales & Distribution Service Dealer Network &Customers

Dealer Business Management Vehicle Sales and Administration

Vehicle and Customer Service

Service Parts and Accessories

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E C O N O M I C A D VA N TA G E S A N D S C A L A B I L I T Y

STREAMLINED IMPLEMENTATION – AND LOW TCO

SAP for Automotive gives sales and service organizations an integrated,comprehensive set of solutions that canbe used by OEMs and dealers alikeacross all processes – including finance,customer relationship management,and supply chain management. What’smore, it can be implemented with rela-

tive ease using well-documented and optimized best-practice business pro-cesses and predefined, industry-specificdocumentation that promotes userbuy-in and simplifies project manage-ment. These best practices, whichare based on extensive industry and partner experience, help ensure a rapid,successful implementation.

An integrated approach minimizesup-front customization typically found with fragmented solutions, simplifiesongoing maintenance, and eliminatesthe need to maintain a variety of disparate technology skills – whichare all factors in keeping the overalltotal cost of ownership low.

SAP for Automotive is based on theSAP NetWeaver platform, which makesit easy to integrate SAP and non-SAPapplications and streamlines connectiv-ity across the distribution channel,while leveraging investments in existingsystems. In addition, SAP NetWeaverenables the Enterprise Services Archi-

At Toyota Material Handling USA, SAP for Automotive solutions haveenabled the company to reduce turnaround times on order-change confir-mations from two days to two hours, cut network costs by over $1 millionper year, and strengthen relationships with customers and dealers.

tecture blueprint, which builds onthe power of Web services to deliver aservice-oriented architecture thatprovides flexibility and businessefficiency without increasing costs.With Enterprise Services Architecture,companies have a cost-effective blue-print for extending existing systems

while positioning themselves for futureprocess and technology changes.

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. . . A S O L I D F O U N D AT IO N F O R T H E I N D U S T RY

COVERING THE SALES AND SERVICE VALUE CHAIN

PROCESS BENEFITS

ORDER-TO-DELIVERYMANAGEMENT

• Increased customer satisfaction with enhanced visibility and accessibility toavailable-vehicle inventories

• Optimized end-to-end processes across OEMs, importers, and dealers throughseamless collaboration

• Shortened lead times and increased responsiveness to customer requests• Increased efficiency in procurement, sales, and delivery processes• Closer alignment of customer demand with the OEM and sales channel through

the enabling of pull sales and production strategies

CHANNEL MANAGEMENT • Improved customer retention and increased service revenue with seamless collaborationfrom OEMs to the dealer point of sale

• Increased sales force productivity and close rates with improved management and qualificationof leads and contacts

• Increased sales and improved vehicle servicing with collaborative capabilities for configuring,ordering, and customer assignment

WARRANTY MANAGEMENT • Reduced warranty claims with improved vehicle design resulting from improvements indevelopment, procurement, and assembly processes

• More complete and accurate customer profiles through sophisticated analytical anddata-mining capabilities

• Reduced processing time and costs in handling overcharges, returns, complaints, andpayments due to process automation

BRAND AND CUSTOMERMANAGEMENT

• Improved understanding of individual customer relationships due to enhanced accessto customer information across channels and contact points

• More effective marketing campaigns with improved monitoring and targeting tools• Better understanding of overall profitability of individual customers through information

transparency and analytical tools

SERVICE PARTS MANAGEMENT • Ability to maintain high service levels and reduced inventory costs with improved planning andforecasting of demand for service parts

• Reduced risk because real-time information provides an “early warning” of shifts in demand,customer requirements, and economic conditions

• Increased efficiency and reduced costs in shipping and transport through collaboration with supply chain partners

DEALER BUSINESS MANAGEMENT • Improved responsiveness to consumer demand because of greater transparency into demand,capacity, and inventory throughout the OEM and dealer network

• Improved sales and service margins with processes that make it easier for customersto buy vehicles, service parts, and accessories

• Lower cost of ownership associated with a single business application that replaces multiple,fragmented dealer applications• Faster, better-informed decisions due to integrated, automated, and standardized business

processes that reduce friction between dealers and OEMs• Improved global brand execution with the ability to centrally manage multiple brands, locations,

currencies, and languages

SAP for Automotive gives companies the tools they need to stand outand excel in the sales and service arena and build strong relationshipsbetween OEMs, suppliers, and dealers – and, ultimately, the customer.To learn more, please visit www.sap.com/automotive .

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