Cost cutting for automotive suppliers

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By: Wise Marketer Staff |

Posted on December 28, 2002

Cost cutting for automotive suppliers

Automotive suppliers across all sectors are using SAP software to cut costs while improving their customer service initiatives. Industry suppliers that are now using SAP AG's Automotive solutions include The Robert Bosch Group, Honeywell, Kongsberg Automotive, ZF Friedrichshafen, Thyssenkrupp Budd Company, Brose, and Toyo Tires.

SAP's Automotive system offers responsiveness to customer demands, allowing suppliers to lower inventory costs through just-in-time delivery, and improve allocation of resources through real-time analysis of data and customer requests. The system also provides management capabilities for employees, regardless of job function, role, location, or computing platform.

Specifically, The Robert Bosch Group plans to roll out a world-wide system to optimise processes and reduce costs through standardisation. And Kongsberg Automotive, which manufactures gearshifts, clutch systems, seat heaters, and other components, is also using SAP to work more efficiently with its customers, including Volvo, Scania, Saab, Renault, GM, MAN, DAF, DaimlerChrysler, PSA, and Toyota.

Chassis technology supplier ZF Friedrichshafen is now using role-based employee portals to give employees access to relevant information, applications, and services incorporating the company's IT systems. Meanwhile, the Brose Group, which supplies window regulators, doors, and closure systems, is using just-in-time delivery for its car door modules, reducing inventory costs.

Honeywell has replaced six disparate systems with one unified solution, centralising inventory and purchasing management. The company is already seeing a noticeable return on its investment, including an improvement in customer service, and a 16% reduction in IT costs.

Designers and prototypers ThyssenKrupp Budd is using SAP to process around 25,000 just-in-time delivery calls each month from its customers, and will soon be using the system to manage its inbound deliveries from suppliers.

And the Japanese tyre manufacturer, Toyo Tire & Rubber, has reduced its order-to-delivery time by streamlining its supply chain processes. The integration of its business processes - from production planning and procurement to sales and distribution - has also enabled Toyo to cut costs, improve productivity and quality control, and speed up transaction times.

mySAP Automotive is a platform for engineering, planning, supply chain management, procurement, and customer relationship management within the automotive industry, supporting all types of companies, including manufacturers, suppliers, importers, distributors, and service outlets.

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