03. June 2024

Maximizing ROI with SAP S/4HANA in Automotive Production

As automotive manufacturers navigate the complexities of global competition, regulatory pressures, and shifting consumer demands, they increasingly turn to advanced technological solutions like SAP S/4HANA to maintain a competitive edge. This sophisticated ERP system supports manufacturers in adapting to the evolving landscape by enhancing production processes, improving supply chain visibility, and ensuring operational efficiency. This blog post delves into how automotive companies can leverage SAP S/4HANA to capitalize on current industry trends and statistics, ultimately driving significant improvements and maintaining market leadership.

Adapting to Industry Trends with SAP S/4HANA

The automotive industry is undergoing a significant transformation driven by several key technological advancements:

Electrification

Automakers are rapidly increasing the development and production of electric vehicles (EVs) and hybrid models to comply with stringent emissions regulations and cater to eco-conscious consumers. McKinsey predicts that up to 30% of new car sales in 2030 could be fully electric. SAP S/4HANA facilitates this shift by enabling manufacturers to optimize their supply chains for the unique components of EVs, streamline production processes, and manage new manufacturing challenges associated with high-voltage technologies.

Autonomous Driving

Investments in autonomous driving technologies are surging, with projections suggesting that up to 15% of new cars sold by 2030 could be fully autonomous, led by major players like Tesla, Google, and Uber. SAP S/4HANA supports these endeavors by enhancing data integration from various testing and sensor inputs, helping to accelerate development cycles and manage the vast data required for machine learning models that drive autonomous systems.

Connectivity and Infotainment Systems

As vehicles become more connected, the integration of cutting-edge technologies like AI and IoT is revolutionizing the industry. Connected car services are expected to generate $1.5 trillion in revenue by 2030. SAP S/4HANA plays a critical role by enabling real-time data processing and connectivity, which is essential for developing advanced infotainment systems that enhance the driver experience and open new revenue streams.

Advanced Driver Assistance Systems (ADAS)

ADAS technologies are set to improve vehicle safety, featuring systems like emergency braking, blind-spot monitoring, and lane-keeping assistance. SAP S/4HANA helps manufacturers integrate these technologies by ensuring that production processes align with the stringent quality and safety standards required for such systems. This facilitates the rapid deployment of new features across models.

Cybersecurity and Functional Safety

Cybersecurity and functional safety become paramount as vehicles incorporate more software and connectivity features. Automakers are utilizing SAP S/4HANA to bolster their cybersecurity measures through enhanced data management capabilities, secure cloud-based solutions, and integrated compliance frameworks to mitigate risks and protect against cyber threats.

Case Study: Hymer AG’s Transformation with SAP S/4HANA

A prime example of effective SAP S/4HANA implementation is in Hymer AG, a leading manufacturer of premium recreational vehicles. With the help of CONSILIO, HYMER executed a comprehensive overhaul of its systems, converting from SAP ECC to S/4HANA and implementing new modules to enhance production and supply chain management. This strategic upgrade resulted in more efficient operations, from parts procurement to quality management, significantly boosting the assembly and production capacities and efficiently managing highly configurable orders.

 

The automotive industry's future is being shaped by rapid advancements in technology and consumer preferences. By leveraging SAP S/4HANA, automotive manufacturers can keep pace with these changes, anticipate future trends, and dynamically adapt their operations to meet these challenges. Integrating SAP S/4HANA into automotive production processes supports companies in achieving enhanced operational efficiency, better product quality, and increased customer satisfaction, maximizing ROI and securing a competitive position in a rapidly evolving market.

 

Sources:

https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/disruptive-trends-that-will-transform-the-auto-industry/de-DE

https://www.forbes.com/sites/forbestechcouncil/2023/11/28/accelerating-progress-translating-automotive-breakthroughs-into-business-excellence/?sh=5f4d4908246f

https://www.extentia.com/post/most-prevalent-technological-advancements-in-the-automotive-industry

https://www.linkedin.com/pulse/how-recent-technological-advancements-changing-automotive/