Cost optimization, access of authorized persons to current data in real-time, as well as efficiency and ease of use are universal features of the desired systems, regardless of the industry in which we operate. What are the specific requirements of the automotive manufacturing industry? And why is the ERP system so important in this area? Is it the best SAP ERP for automotive suppliers? These are the most important features of the S/4 HANA system that put the business into fifth gear.
Logistics for manufacturing companies is the basis
Thinking about the automotive manufacturing industry, we attach great importance to logistics. As you know, the main advantage of implementing an ERP system, such as SAP, is gathering all the necessary information in one place, thanks to which the implementation gives authorized employees an up-to-date set of source and result data. Thus, the logistics industry affects the effective operation of the entire company and the continuous improvement of sales results.
The logistic modules include:
- SD (Sales and Distribution) and its part LE-TRA (Logistics Execution – Transportation),
- MM (Material Management),
- WM (Warehouse Management),
- PP (Production Planning).
These modules, often compared to blocks, constantly process data on manufactured goods.
From raw material to finished product
Managers of production companies pay attention to the possibility of the most accurate calculation of production costs during implementation. To find out the price of processing raw material into a finished product, it is necessary to collect detailed information on the consumption of raw materials or man-hours of each employee. SAP ERP is the best software to do so.
Additionally, in the HR module, it is possible to connect the right person to a specific task in the production process. If there are no employees with the required competences, thanks to the system, the recruitment department quickly learns about it and can start the process of hiring new people. As you can see, the human factor is very important and the logistics do not end with the product. It turns out that all stages of the production chain have an impact on the final financial result for the sale of a given product.
Piotr Til, Logistics and Automotive Team Manager, Senior Consultant SD at Hicron, wrote in an article for the “Finanse i Controlling” magazine: “Another important issue for SAP logistics modules is the price procedure used in the SD module, which allows us to build the price of the finished product. To improve the operation of the company, it is worth considering whether the procedure should not be improved or re-implemented. The rebuilt procedure with the introduced modern mechanisms and extensions means that when the product is sold, the company receives all the necessary information about the margin it will achieve “.
An efficient pricing procedure is a phenomenon on the border of the logistics and controlling area, the task of which is to obtain an appropriate ratio of the sales price to its costs. By collecting and analyzing relevant data in SAP ERP, the automotive supplier receives information about whether the products are sold below or above the margin.
Manufacturing with SAP ERP for automotive – visions and tailored solutions
We know that the customers of component manufacturers in the automotive industry are often very large and demanding companies. The terms of cooperation, dictated by the world’s automotive giants, are extremely demanding and detailed. A well-implemented SAP ERP system allows you to adjust, among others: document sending standards, requirements related to the production of packaging and labels, and the method of product packaging and labeling, as well as the possibility of modeling processes.
As you can see, SAP ERP knows the market needs, and a properly selected partner will help implement a system that matches the requirements of a specific company, in line with our slogan: VisiOn Architect. SolutiOn Maker. Hicron supports its clients at every stage of the road to an efficient system – from the beginning of creating an idea to supporting already existing solutions. Check how we can help your company too!