Auto Parts Industry’s Challenge and Change

Over the years, auto parts manufacturers have been striving to improve their efficiency. Although their effort have achieved considerable success, the pressure on cost control has forced them to continue to work hard to improve efficiency. At the same time, in terms of overall service, quality control, and the ability to more accurately coordinate product design, development, production, assembly and logistics, OEM factories have placed increasing demands on auto parts manufacturers.

This is an ever-changing industry, and various companies in the industry are striving to find innovative, even revolutionary methods. In order to meet today’s various challenges, auto parts manufacturers are committed to working more closely with OEM factories and trying to carry out business activities with a series of partners in a global supply network that is becoming more and more perfect. How to help auto parts manufacturers change to a new business model as soon as possible so as to create profit in this fiercely competitive industry –  this is an urgent question that needs to be answered.

SAP Auto Parts Industry Solution

Current release highlights

• Integration Of demand-driven planning with material requirements planning (MRP)
• Machine learning for demand management and forecasting
• Advanced data models for electric vehicles, charging equipment, and renting assets
• Embedded machine learning and conversational Al bots within service and support processes

Upcoming innovations

• Intelligent product design collaboration and embedded software in bill-of-material processes
• Predictive MRP with interactive capabilities to forecast capacity and component demand
• Intelligent selling scenarios with Al and machine learning and further experience management marketing integration

• Application Of machine learning and data science to moving asset data such as routes and locations

Future plans

• Enhance shop floor visualization and use machine learning in health and safety management

• Enable an intelligent, connected business using technology based on Internet of Things

• Provide an intelligent, agile transportation network that supports various mobility options
• Offer Al-based problem-solving, virtual agents for support, and predictive services

Value of SAP Auto Parts Industry Solution

• Manage product, market, customer, and technology mix — ensure that resources, investments, and processes are properly combined to expand the enterprise while increasing the minimum return on investment and aligning resources throughout the enterprise so that core competitiveness can be leveraged for corporate purposes and goals.
• Follow customers — provide services for more OEMs factories around the world and establish global customer management processes, while using local engineering, procurement and manufacturing capabilities.
• Expand portfolio — with a flexible IT platform to quickly implement M & A; strengthen the ability to participate in market competition; provide a wider range of services to OEM factories in engineering, procurement, logistics and product test.
• Improve responsiveness speed — cross internal company boundaries to collaborate with external partners on new product design and reduce the complexity of the development process.
• Improve agility and flexibility — share real-time information on supply and demand with suppliers and OEM factories, implement adaptive manufacturing technologies and establish multiple business models to meet both high-volume and small-scale markets demand while maintaining centralized control.
• Enhance visibility of the entire supply network — integrate information about products and processes in the entire supply chain and use tools like RFID, supply chain management and inventory management to accurately track and analyze business conditions.