Winning the Race for Supply Chain Success with the Smart Use of SAP
Designing a successful vehicle is challenging enough, mass producing it at scale takes things to next level.
New energy sources, innovation and digital transformation are driving the automotive industry like never before. Add additional challenges like component shortages, resource constraints and shipping delays and it’s no wonder the industry feels like it's running on empty.
Is it possible to manage all of this design, production and distribution complexity effectively and efficiently in SAP without using fragile spreadsheets and manual workarounds?
Yes. SAP’s advanced and integrated tools are designed to improve your supply chain agility and resiliency, and Reveal has deep industry knowledge and experience applying best practices to help the Automotive industry. Our education and enablement approach has bought significant improvements in the areas of inventory reductions, process and service measures and optimizing the end-to-end supply chain.
The race is on! Embracing the challenges and implementing an agile supply chain with SAP is the road to success already taken by a number of Reveal clients.
Success Stories
See what some of your industry peers have achieved and how Reveal has enabled their success.
Borgwarner
- 92% reduction in overdue demand and supply elements
- Reduced inventory by over 24% and improved stock turns by 16%
- Increased schedule attainment and production efficiency
SouthCo
- Optimal capacity commitment via Finite Scheduling
- Capacity Plan integrates with MRP
- Provide realistic order ship/availability dates to customers
Q/A
Q
What if Your Automotive Sub-Component Suppliers’ Lead Times Are 10 Weeks, 8 of Which Are “On the Water”? How Can You Avoid Holding High Inventories?
A
SAP has many different demand planning strategies that can be used to plan and stock components. For example, in the passenger car division a plan with final assembly strategy is usually used because it is flexes to make the higher of the forecast or customer call offs. But in the commercial vehicle division it is common to use a planning strategy which plans without final assembly. Commercial vehicle divisions usually have a higher product mix with lower volumes per finished good. In a plan without final assembly strategy, you hold stock at the sub assembly level and “finish off” just prior to the customers’ requirement. That way, you can hold less stock and still meet the changing needs of your customer.
Q
How Can SAP Help With Supply Planning in an Industry Where the Long-Term Demand and Supply Outlook, Signals, and Trends Are Uncertain, and Volatile Is Difficult at Best?
A
SAP has standard, integrated supply chain capability and functionality using a combination of planning strategies, product hierarchies, and scheduling agreements that can help manufacturers get visibility of these complexities and develop viable supply proposals to meet the demand signals provided.
Q
What Can You Do if You Have a Customer Who Increases Demand During the First Part of the Month and Drops It Like a Stone Near the End of the Month to Keep His Inventories Low?
A
For this type of customer we recommend using a true make to stock planning strategy so that the demand is solely the forecast and his sales requirements are not taken into account. This is particularly useful when the monthly volume is equal to your production line capacity; you simply cannot make any more than you’ve forecasted.