We discuss the points to be considered for SAP Implementions in Tyre & Tube Manufacturing. We also provide some information on kind of solutions provided to customers by our team.

1. SAP FOR TYRE AND TUBE MANUFACTURING
BY VIRENDRA RAI, DIRECTOR- 2ISOLUTIONS
We have been working with many Tyre & Tube manufacturers and tried to understand their system
needs. We attempt to discuss the challenges and possible ways to handle those in an efficient manner.
Tyre Companies are high capital intensive as they require a huge set of machinery to process rubber and
other ingredients, pass multiple stages of extrusion, molding etc. Handling of product variants, variant
wise inventories, packing type-wise inventories, and matching of production to demands are key
business needs. Some of the typical industry challenges are:
• A large number of material codes due to variation in sizes, printing, packing of the same
product.
• Handling of Make to Stock and Make To Order based manufacturing for the same product and
complete tracking of inventories and customer to whom it belongs.
• Planning of Productions with due considerations to Demands, Stock, Capacities, and availability
of Dies/Molds.
• Need for handling small packing numbers traceability from production till consumer of goods
with low efforts in data capturing and processing.
• Need for stock and movement planning and handling from factories to branch warehouses.
• Decentralized and yet controlled delivery & billing process from branches.
• Handling of pricing policies based on material characteristics, packing types, regions, customers,
type of customer, etc.
• Need of handling multiple discounting policies and automated turn over discount related credit
notes.
• Accurate capturing and tracking of finished Goods actual outgoing weights and allowable
tolerances.
• Need for monitoring production process parameters for control on the quality of goods
produced.
• Effective handling of scraps and defective returns. Traceability, rework, and accounting at lower
values than originals.
• Management of maintenance jobs, maintenance costs, and machine upkeep.
• Costing of standard and actual costing products with due consideration to direct and indirect
costs with automatic allocation of cost.
In the market, there are many small-big ERP solution providers but SAP S/4HANA is class apart and one
can be sure to be able to handle all the business if SAP S/4HANA is deployed implemented suitably.
Some of the key capabilities of SAP S/4HANA which can be used to manage the business needs of
Contract Manufacturers are:
• Capability to classify products and batch based on defined characteristic values and allow
searches based on characteristic values.
• Capability to define multiple versions of BOM and Routing provides high flexibility to map the
business process of Tyre Manufacturers.
• Capability to handle co-products, by-products as standard structure and actual against orders.

2. • Capability to define multiple manufacturing routing based on volume and process needs.
• Capability to define Batch/Serial levels details of inventory transaction with options to associate
numerous extra details like customer serial number, production date, customer, etc.
• Capability to handle MakeToOrder and MakeToStock production of the same materials at the
same time.
• Capability to handle the complete procurement process including Planning, Requisitions, RFQs,
Multi Levels Approval in PR/PO, Budgetary controls, etc.
• Capability to handle Bar Code based movement of materials, tagging inventory to status, etc.
• Capability to create sales orders based on customer orders without manual data feeding.
• Capability to define the Sales Bill of Materials and kitting operations handle different modes of
supplies.
• Capability to plan productions with due care to available capacities and materials plan.
• Capability to manage the procurement of goods, services, and assets efficiently with due
approvals and budgetary controls.
• Capability to generate quality inspections for goods issues, receipts, transfers, and allowing
further action depending on product/setting helps in managing good inspected only on the
production lines.
• Multiple Sampling Plans, Results evaluations, defect recording and provide to enable quality
manager with usage decision like unrestricted stock, blocked stock, scrap, return, etc enable
organization with a powerful quality system which help in mapping Tyre Industry quality
management needs.
• Capability to define Packing Type wise numbering of packs using the concept of handling units is
quite powerful for the tyre industry.
• Capability to define pricing policies based on material characteristics, packing types, regions,
customers, type of customer makes SAP suitable for Tyre Industry.
• Capability to define customer targets and rebate schemes based on target achievement leading
to auto-generated credit notes is quite useful for the Tyre Industry.
• Capability to provide Customer/Product Line/Product Wise profitability analysis
• Capability to interface with Customer and other logistic service providers of customers.
• Handling of Purchases, Inventory, Sales, Invoicing, Pricing, Plant Maintenance, HCM, and Finance
Processes.
• Possible integrations:
o PO created by customers to end up creating sales/production orders in the
manufacturer's system.
o Weighbridge and weighing machine integrations to provide goods receipts and issues.
o Dealer Management Solution built on the SAP Cloud platform can be a powerful tool in
the hands of customers and sales forces.
o Integrations with DCS/PLC System to automate the data capturing related to production
and machine downtimes etc.
We have been helping may Tyre/Tube Manufacturers in deploying robust applications like SAP S/4HANA
to make them efficient and responsive in serving their customers.
Contact us in case you need to know more about practices and controls in the Tyre Manufacturing
business. Do let us know in case you are looking for a service partner to advise on system needs and
implement SAP S/4HANA in your organization.
Virendra Rai

3. Director- 2ioslutions
Cell Number: +91 8800592601
Email: virendra.rai@2isolutions.com