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SAP automobile major


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Atlas Systems case study

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SAP automobile major

  1. 1. Case study of US Automobile major SAP IMPLEMENTATION
  2. 2. OVERVIEW • The client, a US auto giant involved in manufacturing and distribution of high-end electric powered automobiles and electric vehicle powertrain components. • The design of the overall product and customer-specific components of the vehicle is done at US location. The client decided to roll out a SAP to track the movement of vehicles within its distribution network across the globe.
  3. 3. BACKGROUND • The client partnered with Atlas Systems to do an assessment and suggest/ implement remedial actions surrounding the SAP implementation.The key to the success of this very brand-driven client is its ability to deliver vehicles to its customers on time, anywhere in the world. • The distribution network had to be kept running at peak levels and operating costs had to be controlled. It is worth mentioning here that the automotive industry operates on very tight margins and reducing costs remains a top priority. • The client engaged with Atlas to address the challenges and Atlas had to understand the business processes and technology being used by the client.
  4. 4. CHALLENGES • The client was battling the high costs of maintaining the existing IT solutions (some on SAP), redesigning IT systems for offices in other regions and future product line integration(s) • Customer felt that there were many deficiencies in the way processes were modelled in some of the SAP modules, making it extremely difficult to operate the software. • The unsatisfactory service levels and issue resolution processes, led to erratic and inadequate support to the businesses.Also, there was not enough in-house expertise to execute the IS Auto upgrade (from 2.0 to 3.0) and rollouts • There was lack of standardization of SAP Wholesale processes in the region despite commonalities • The inability to adapt to new technologies quickly made improvements in the current processes very difficult • The client's multiple IT contractors lacked focus and commitment, which had a negative impact on earlier attempts to implement a solution
  5. 5. SOLUTION • SAP ERP software was implemented at Customer location to control its total operation; they installed FI/CO (Financial Accounting and Controlling), Service Management (SM), Sales & Distribution (SD), and Material Management (MM), Production Planning (PP), and Quality Management (QM) modules to manage their operations. • Based upon its’ unique value realization approach to help drive transformation programs to achieve tangible business benefits, we engaged at various level of the Customer organization to formulate a plan to make corrections to the SAP SM/SD modules.Atlas undertook an audit and due diligence of the existing processes and working model and came up with recommendations for implementation within weeks. This was achieved against odds like tight deadlines, very limited knowledge at that time of the client's processes, as well as with having to coordinate with geographically dispersed teams. • Based upon our assessment, we found that the sales & distribution channel of the client is uniquely structured – Instead of usual franchised dealer model prevalent in automobile industry.The traditional OEM to Dealer transactions, therefore, becomes internal to the Customer system. Many of the formal (& traditional) OEM to Dealer transactions results to internal accounting entries within the Customer SAP system.
  6. 6. SOLUTION • In order to make the operation of the Customer Store conform to both Customer’s requirements and industry best practices, Store Retrofit Project was implemented to - • Make retro corrections to the SAP SM/SD modules to conform to the processes defined by the Customer and Atlas Systems for operation of the Customer’s Company owned Stores • Design and install a Point-of-Sale system in the store integrated to SAP • Provide the proper reports for operating the Store • Design & implement forms for sales of vehicles, parts, and service in the Customer Store • Provide documentation and training materials for Store operations • As part of the solution, SAP software modules for Portal and Net- Weaver were also installed
  7. 7. RESULTS • Once their back office accounting & sales processes were streamlined and work-flows were implemented to conform to their established processes, the Customer was able to focus redefining the whole customer experience in the way car is sold to consumers.Today they are known to provide ‘not-heard-of’ retail experience to automobile customers and setting standards in the industry. • Benefits • In the areas of development, second-level support and local rollout support, the client reduced costs significantly. • Atlas helped client establish a professional, technical and management approach to support and projects • The client has witnessed service levels going up to 70-80 percent from unknown low levels as a result of the SLA based service culture.Atlas set SLA improvement targets and achieved them • Atlas strong SAP consulting and domain expertise enabled effective business process mapping and defining new processes that directly translates to a well-managed IT system that meets business needs of the client