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About The Sap Best Practices For Automotive Industry

The automotive industry has been at the forefront in terms of best in class management practices for several years. Practices that originate from this industry are replicated across a plethora of other industries. Various performance management principles such as Kaizen sprang out from the automotive industry. The strict emphasis on performance in the automotive industry is triggered by the need to secure a strategic advantage in a very competitive industry. Challenges facing the companies in the automotive industry range from increased competition to controlling costs of raw materials and vehicle warranties without compromising on customer expectations. The SAP Best Practices for Automotive Industry provides companies in this industry with effective solutions of these problems.

The Need for SAP Best Practices

In an extremely competitive business environment such as the automotive industry, staying ahead of competition is the name of the game. SAP Best Practices for Automotive Industry are needed by companies in this industry to improve efficiency in industry processes, to provide a platform that allows for a collaborative relationship with suppliers, to properly manager vehicle dealers and to offer an interactive platform with customers who are at the heart of any business. The following are some of the software solutions offered under SAP Best Practices for Automotive Industry:-

Supplier Collaboration and Manufacturing under SAP Best Practices for Automotive Industry

One of the critical success factors in the automotive industry is a solid supplier network that provides quality and reliable raw materials. SAP Best Practices for Automotive Industry with respect to supplier collaboration and manufacturing include Scheduling Agreement Processing with Forecast Delivery Schedule and Invoicing Processing Forms which allow collaboration between original equipment manufacturers and suppliers with regard to forecast deliveries; Scheduling with Invoices and Tracing with Batch Numbers or Serial Numbers which allows for easy tracing of goods; Scheduling Agreement Processing with Revaluation and Credit Memos Within and Outside Tolerance Limits that seeks to protect original equipment manufacturers in the event the price that was originally negotiated with suppliers is changed and Third Party Order Procurement with Subcontracting which is designed to improve collaboration between the original equipment manufacturers and the suppliers.

SAP Best Practices for Automotive Industry with regard to manufacturing on the other hand include: Quality Management in Procurement which facilitates quality inspections in the procurement process; Advanced Product Quality Planning standard which describes the processes for elucidating product quality standards and Make to Order with Repetitive Manufacturing which sets the record straight on processing sales orders of repetitive manufacturing including related controls.

Supply Chain Management under SAP Best Practices for Automotive Industry

The supply chain in an automotive industry is very delicate owing to the fact that there are many supply parties involved. The typical supply parties in a supply chain in the automotive industry include material suppliers, logistics providers, distributors and dealers. Typical industries usually have a maximum of one supply party in the supply chain. Because of the many supply parties in the automotive industry, the supply chain is slightly convoluted. This calls for proper supply chain management. There are a number of SAP Best Practices for Automotive Industry that are solely focused on proper supply chain management.

The SAP Best Practices for Automotive Industry with regard to Supply Chain Management include Supplier Managed Inventory, Release Processing, Service Parts Order Fulfillment and KANBAN with Replenishment. The Supplier Managed Inventory Best Practice describes scenarios where suppliers manage inventory from the original equipment manufacturer in a collaborative framework. The Release Processing Best Practice is similar to the Supplier Managed Inventory Best Practice only that it goes further to describe scenarios where a scheduling agreement is released. The Service Parts Order Fulfillment Best Practice is designed to handle available to promise functions across multiple locations.

KANBAN is based on three main principles: visualization of workflow, reduction of work in progress and workflow enhancement. The KANBAN with Replenishment Best Practice allows for operation of KANBAN with web interface. This interface allows the original equipment manufacturer to meet the replenishment needs of suppliers.

The SAP Best Practices for Automotive Industry with regard to Sales and Customer Service

Focus on customer is the message that rings across all SAP solutions. SAP AG with over thirty years of experience offering industry specific solutions knows that customers are the most important stakeholders of any enterprise. In the automotive industry where there are several players, companies need to address customer concerns of speed, quality and specific features to hold on to the customers they have and attract new customers. The SAP Best Practices for Automotive Industry with regard to Sales and Customer Service include Warranty Processing with Returnable Parts, Warranty Claim Processing with Post Crediting, Recall and Warranty Processing, Make to Stock with Reservation and Spare Parts Sales and Cash Desk just to mention a few.

Warranty Processing with Returnable Parts Best Practice allows for collaborative participation of the claimant, the processor and the party to reimburse. The Warranty Claim Processing with Post Crediting Best Practice describes a scenario where warranty processors need to administer claims in the SAP ERP system. The Recall and Warranty Processing Best Practice allows for automatic validation of claims against recall data and synchronized accounting for validated claims. The Make to Stock with Reservation Best Practice describes the process of making vehicle sales from the side of the vehicle seller. Finally, the Spare Parts Sales and Cash Desk Best Practice describes the business process of selling spare parts and provides a mechanism for a proper enterprise wide cash management function.

The Perks of the SAP Best Practices for Automotive Industry

Companies in the automotive industry are able to enjoy certain perks as a result of using SAP Best Practices for Automotive Industry. These perks include greater return on investment which is music to the ears of shareholders, significant reduction of SAP ERP implementation which means proper resource utilization and cost savings. The best implementation methodology for SAP ERP implementation is the ASAP implementation methodology which is stable and has been implemented in very many companies in the automotive industry.