The automotive industry is one of the most thriving in the world and contributes significantly to the global economy. While the bet used to be mainly on product quality and brand management, today the challenges are increasingly shifting to the axis of services and cost optimization. Improving user experience and satisfaction, increasing supply chain efficiency, and reducing costs and waste are the main areas in which the entire supply chain is being challenged.

For SAP, automotive is one of the main areas of development, and thanks to a deep understanding of the market it is able to offer a vast ecosystem of products that can support the industry, at all levels: from component production for manufacturers to sales.

Industry 4.0 and automotive: perfect marriage with SAP

One of the strategic factors for the automotive industry is undoubtedly logistics, which, incidentally, is also the factor in which the quality of the ERP system chosen has the most direct and immediate repercussions. Starting from the founding principle, collecting and managing all information in one source of truth, to the more operational aspects such as order and payment coordination, SAP S/4HANA and SAP’s other ERP solutions can provide everything an automotive company needs. In fact, digital plays a key role today; here we recall the main benefits.

The main advantages of using SAP in automotive

As a first thing, let us recall that, as we have mentioned, theautomotive industry is among the main ones served by SAP. For this reason, the number of solutions, customizations and success stories of the company is really high. Attention to market contingencies is equally high. For example, on the summary page of all solutions related to the automotive industry, explicit reference is made to both sustainability and mobility and geopolitical changes.

In this we can identify an initial advantage, although not strictly related to operations: choosing SAP solutions for automotive means placing oneself in an agile context that is effective in identifying and addressing new market challenges.

Global market visibility

This is precisely where one of SAP’s most advanced and innovative tools fits in: SAP Industry Network for Automotive, which takes the idea of Industry 4.0 in automotive to a new level. By using data from a global network of companies, it makes it possible to overcome the problems traditionally associated with disconnected and fragmented industrial processes, predict market risks and generally make better and more timely data-driven decisions, as well as offering the opportunity to connect with new partners who can help overcome procurement, delivery and production problems.

Increasingly sustainable management

The topic of environmental impact is becoming increasingly topical and often, in addition to being a regulatory necessity, also allows for increased margins through the reduction of waste and waste produced. For companies that are moving towards circular logistics, or want to improve their implementation, SAP Returnable Packaging Management is the ideal tool. In fact, fully integrated with the SAP ecosystem through the BTP (Business Technology Platform), it enables the management of all types of reusable packaging, such as containers, pallets, and so on, collaborating with partners throughout the production chain.

All the solutions for a changing industry

In addition to these two products, which are particularly attractive in the current market environment, there are numerous advantages, of a more general nature, that SAP offers. We recall here the main ones.

  • Improve planning and control through more efficient and shared use of data
  • Improve business processes by fostering communication between departments, sectors and plants
  • Reduce timelines for supply, development, and production cycles, including through advanced supply chain management tools
  • Rapid revenue growth for sales-related services through the use of tools such as advanced CRMs
  • Automated management of emergencies and anomalies, through artificial intelligence and machine learning tools that can identify them predictively.
  • Improving customer relationships through dedicated tools for tracking products, habits, and in general the relationship between buyer and company.

As we can see, SAP is well aware of the needs and critical issues in the automotive world. Through a partner who can select the best solutions and plan their development, these benefits can be achieved efficiently and effectively.

At Regesta we can help you design your customized digital transformation journey, thanks to our teams of dedicated consultants.