How to get a handle on the automotive industry using SAP VMS?

Written By
Eliza Durlej
Life shows that, despite the economic turbulence caused by certain geopolitical areas and adjacent markets, car sales are still on the rise.

The situation of the automotive sector and its growth perspectives are good. In order to better manage the business processes in this still developing industry, the German SAP has prepared a dedicated VMS (Vehicle Management System) solution – an application designed for companies operating in the automotive area in the broad sense.

How does it work?

VMS supports the business in the sale and optimisation of processes needed by car importers and dealers when contacting the original equipment manufacturers (OEMs) and dealers in new and used vehicles.

The graphic below 1) depicts the use of the VMS module in the purchase, sale and servicing of vehicles.

The VMS is capable of full integration of all relevant business processes, such as sale, purchase, rework, returns processing, trade-in and processing of services. It can also archive vehicle data. In other words, the application enables flexible response to the needs of the customers in the production area and short delivery times with reduction of warehouse stock and sales or distribution costs.

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Who is it for?

A vehicle distributor will be able to use the VMS as a central tool to manage, order, sell or distribute and track the vehicles. The interface implemented at one of Hicron’s clients enables direct exchange of information with the manufacturer, owing to which all entities on the customer–manufacturer axis are conveniently and directly involved in addressing the buyer’s needs.

The dealers use it to configure, find, purchase and track vehicles for the end customers. To do this, they do not require their own SAP system because communication with the system is done by means of additional online tools (Dealer Portal).

The Dealer Portal may be implemented using various conventional technologies, e.g., WebDynpro (WDA) and Business Server Page (BSP), or a later technology – SAP FIORI. The dealer’s system can also be integrated with the VMS application. Thus, there is no need to have and implement the SAP system.

What is it for?

Facilitating the processes and combining everything in a single place with simple and transparent history are the two most important reasons to implement the VMS. There also other reasons, such as innovation, which means that the customers can make the purchase faster, the employees lose less time in looking up information, and the company has another satisfied business partner.

As shown by the photographs below 2), quays are packed with brand new cars, which means that car distributors still need solutions such as VMS.

a lot of car while loading
a lot of car while loading
Impressive, is it not? And if we have already bought a car, it is obviously subject to in-warranty servicing, and SAP has also prepared a suitable solution for this – WTY. This, however, I will discuss next time.


1) SAP Help Portal
2) Photos – private archive

Eliza Durlej
SAP Consultant, Hicron

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