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SAP Solution for Automotive

Why Choose SAP Solutions for Automotive Suppliers

I’m working at the company which produces the components for Automotive OEMs, now that China had joined the World Trade Organization, its volatile auto industry faces intense competition and price pressure from foreign suppliers. In this climate, our company must have the operational control and efficiency to respond effectively to fast-paced market change. Our company chose the mySAP ERP solution for its integrated functions in logistics, material management, manufacturing, financial accounting, and controlling. The company chose the SAP for Automotive set of solutions because it is the industry standard among Chinese auto manufacturers, it’s really helpful for company business operation.

Because SAP for Automotive enables automotive suppliers to perform critical business activities, including:

  • Enterprise management and support – Automate and streamline your core business processes for the management of finances, human resources, and product development, as well as for a broad range of corporate services.
  • Make-to-order/make-to-stock manufacturing – Replenish line-side inventory, manage complex production planning and scheduling challenges, manage outbound-parts processing and transportation, and optimize plant performance.
  • Sales order management – Handle sales order processes, from order entry and scheduling to delivery and billing.
  • Operational procurement and inbound logistics – Collaborate with customers, order parts from Tier II and Tier N suppliers based on just-in-time delivery requirements, send and process advance-shipment notifications, and manage invoicing.
  • New product development and introduction – Enable key stakeholders – especially OEMs – to collaborate throughout the product life cycle.
  • Strategic sourcing – Strategically manage your global supply base and handle strategic sourcing processes, such as spend analysis, bid processing, and contract negotiation, as well as quality assurance and readiness.

According to the activities provided by SAP for Automotive, thanks to seamless process and partner integration, the company is able to resist and withstand fluctuations on the market. This is making it possible for our company to concentrate on its core business and to shape prices variably, thus optimising total cost of ownership. So we chose SAP solutions for Automotive!

Later I will post my further experience with SAP solutions for Automotive. 

Good day!

 SAP TechEd Shanghai 2008

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  • Hello Tao,

    thanks for your blog. I am not working in automotive projects at the moment but I am reading about the difficult times in this industry in the newspaper. I would be very interested in how you use the autopmotive solution to weather the storm in the current situation.

    I am looking forward to hear more from you.
    Best regards,


    • Hi Bernhard:

      You’re right, because of economic crisis, now it’s the really difficult times for Automotive industry in the world, later I’ll summarize some points for our automotive solution to weather the storm!

      Thanks for your comment!

      Have a good day and best regards