Automotive Navigator:
Cost Saving Road

What challenges get in the way of saving of your Automotive business? Have a look at some of them. 
Automotive Navigator: <br />Cost Saving Road
Published
22nd Mar 2022
Unstable order volumes, increasing costs of energy and resources, pressure to increase salaries due to increasing inflation – we know that every branch of Automotive has their own characteristics and challenges. In Hicron portfolio, there are hundreds of projects from the scope of SAP and non-SAP, conducted in various areas of the Automotive industry.

Obtaining reliable financial information

Processing data and showing dependencies between them, performing error-free calculations quickly, integration with external sources and preparing simulation for the business – it is such comprehensive tools for data processing, as well as for planning and predictive analysis that a modern business needs. The answer to these challenges amongst others are SAP Analytics (Cloud) and SAP PaPM. Without such solutions:

  • it happens that calculations needed to report are collected in several places, and as a result, they are not done in real time, and errors that occur are visible only after finishing the process, when picking them out becomes very difficult;
  • companies are discouraged by the need to implement a predictive program on their own devices and, as a result, the need to pay fees for implementation and maintenance of the tool and purchase its update. When using a cloud, there are no such issues.
If we know who has decided to buy our service or product in the past, we can assume with some degree of probability, who will be interested again. Therefore, we can divide clients into two groups: those who have made purchase and those who have not. Next, on the basis of this valuable information, we can create a classification rule and build a predictive model. In order to do it, we need to provide more information: demographic, behavioral and any other data which may influence and improve the quality of prediction. While testing our model based on test data, we make sure that it selects the right clients. Once we are convinced that the results are accurate, we can apply it to all of our potential clients. Thanks to such information, we send information to telemarketers about subscribers who should be easily persuaded to make a purchase.
Michał Bekus
SAP Analytics Expert at Hicron

Practical application of Lean Manufacturing / Kaizen / Kanban

Lean Manufacturing, Kaizen, Kanban are philosophies, which in the Automotive industry help to increase productivity and shorten production time, and at the same time, they directly contribute to keeping inventory and component quantities at the appropriate optimum level. Without such solutions: 

  • resources may be wasted by production of surplus unnecessary components, suspension of production caused by poor production planning and warehouse management, use of inadequate workplace organization and tools or failure to match production quality with customer requirements.  

While implementing SAP S/4HANA systems at Automotive suppliers and manufacturers, we especially emphasize areas connected to Logistics. In addition, we thoroughly analyze business processes, taking into account cost optimization and methods such as Kaizen, Lean Manufacturing or Kanban, applied in the company. Using these models when building S/4HANA processes prevents wasting resources.

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Warranty process optimization

Solutions such as Recall App and SAP WTY ensure optimization of warranty processes, and thus minimize costs. In Hicron we focus on the integration of IT systems and external platforms of suppliers. With such methods, we shorten the time to prepare price calculations, and search and filter data. We enable tracking of what is happening with warranty requests, viewing documentation and costs incurred by the dealer, minimize risk of mistakes, as well as delays in data transfer. Without such solutions:

  • a non-standardized IT system loses transparency of processes and does not offer a possibility to decentralize warranty claims handling, thus prolonging billing time and does not enable full access to all sources of spare parts used for warranty repairs;  
  • reducing warranty costs, or even maintaining them at a constant level proves difficult, or sometimes even impossible. 

Our implementation of SAP WTY in Solaris, within which Hicron took into account the functionality of indicating the source of spare parts, allows for indicating the place of purchasing parts and manually indicating an alternative supplier. This solution contributes to shortening the out-of-service time of a repaired vehicle.
Read more about:

Hicron Recall App Hicron SAP WTY

Improving workflow with contractors

We know what requirements Automotive companies have. We understand that an efficient workflow connected to the exchange of documents such as invoices, orders, requests and complaints (EDI), access to specific Fiori applications for data management and VMS application (Hicron Dealer Portal) operation as well as downloading and uploading data related to visits of another clients and their service (Service Advisor) are the basis of a supplier’s operation. Why is it so important? Without such solutions:

  • integration between the Automotive supplier and their client is made impossible, which causes interruptions and lack of transparency required by a producer or importer;  
  • the number of paper forms scares customers away, and difficulty in finding information on price lists, spare parts availability or repair history of the car are annoying and cause distrust.

The main assumption of the SAP Dealer Portal solution implementation was optimization of the spare parts sales process, integration of products with the spare parts catalog, possibility to control the stock availability and product prices, and acceleration of production processes. Learn more about the Hicron Dealer Portal solution.

The cooperation with Hicron went very smoothly, and all the elements of implementation took place on time. Skills and experience of Hicron consultants are invaluable.
Piotr Kazberuk
Project Coordinator at Pronar

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