How SAP is Addressing Automotive Industry Challenges – Driving Green Manufacturing and Accelerating Operational Excellence

  • 09 December 2024
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The automotive industry is feeling the pressure of the changing landscape. As electric vehicles (EVs) start to become a popular feature, and government regulations become stringent manufacturers and suppliers are faced with several automotive industry challenges, such as meeting their target emissions while maximizing production and maintaining a hold over the market. This is where SAP solutions come in as a holistic approach empowering auto-makers to go ahead with innovative ideas whilst remaining sustainable. 

In this article, we will examine how SAP S/4HANA, Product Lifecycle Management (PLM), and SAP Leonardo are contributing to the automotive industry’s sustainability efforts through IoT, AI, and smart manufacturing solutions. 

From Data to Dashboard, Smart Factories are Producing Smarter Cars with SAP S/4HANA, PLM, and SAP Leonardo 

SAP offers an all-in-one, cloud-based, next-generation EHS management system for automotive players committed to sustainable innovation. In addition, SAP PLM and SAP Leonardo also help the automotive industry use newer technologies such as IoT, AI, and ML to improve their business processes. 

IoT forms the backbone of smart factories. Through IoT devices, auto manufacturers can remotely track the condition of machines and equipment, enabling predictive maintenance, which decreases equipment idle time and avoids wastage. In addition, sensors can track how much energy is utilized and thus help improve the functioning of production equipment and reduce energy usage to mitigate the sustainability challenges in the manufacturing industry. 

The sphere of decision-making has completely changed with AI and machine learning. Thanks to these technologies, predictive capabilities are enhanced which will allow manufacturers to deal effectively with challenges in the automobile industry by anticipating demand, managing their supply chain, and enhancing their product design. AI can, for instance, scrutinize large volumes of customer communications so that companies achieve maximum personalization of vehicles while ensuring minimal material wastage. 

SAP Leonardo helps strengthen development by easing out the convergence of IoT and AI with business processes. This allows car manufacturers to create smart products that provide information on how well they perform and how the product is being used so that the product can always be improved. 

Shift into High Gear: SAP’s Integrated Solutions – SAP S/4HANA and SAP Analytics Cloud for Auto Manufacturers  

The benefits of SAP S/4HANA and SAP Analytics Cloud are manifold, particularly for auto manufacturers and suppliers striving for sustainability and trying to resolve green manufacturing challenges. These solutions streamline processes, enhance decision-making, and provide comprehensive insights. 

Enhanced Operations 

SAP S/4HANA as an integrated SAP EHS management system brings the possibilities of heteronomous environments to automate any aspect capable of influencing the final workflow sage line. One of the core elements in attaining sustainability targets and mitigating automotive industry challenges is the efficient utilization of resources and reduction of operational waste, which in turn requires improved collaboration among departments and reduction of redundancies. By housing a single version of the truth, manufacturers can achieve their goals and plans better. 

Improved Decision Making 

Automotive companies facing automotive industry challenges can utilize SAP Analytics Cloud’s powerful analytics resources to help support their decisions with the real-time data on hand. Organizations can deploy desirable practices through target practices around sustainability KPIs such as carbon emissions and energy consumption when they see gaps. 

Increased Efficiency in Supplier Communication 

Sustainability is frequently a joint responsibility of the manufacturers as well as its suppliers. Encouragement to reduce automotive industry challenges by using SAP solutions enables suppliers and manufacturers to engage together in sustainable practices.  

Enhanced Reporting and Regulatory Adherence 

Automotive companies are facing greater regulatory pressures now. Combining this with other automotive industry challenges makes it imperative for organizations to be transparent in relation to their sustainability. Without proper managerial tools, sustainability challenges in the manufacturing industry multiply as it is impossible to manage environmental impacts as the company tries to demonstrate effective compliance with relevant regulations in place. SAP solutions have various tools that provide a complete accounting of the regulatory aspect of compliance which is highly beneficial for manufacturers. 

Case Study: From Racetrack to Roadmap: How SAP Helps Porsche Stay Ahead

The characteristically noted sports-car manufacturer Porsche has always considered the potential of its operations, which in this case includes the management of its data, as a core area of focus. In order to leverage its data, Porsche employed SAP Analytics Cloud and SAP Datasphere.

The Automotive Industry Challenges

Porsche struggled with the management of its enterprise data. Different departments and regions used their own data solutions which were unmanaged. In the absence of management, data could be manually sourced and collected from different points into spreadsheets which made it take sometimes several days just to prepare the data before sales meetings or close deals. A controlled, managed, mixed and structured data set became a basic need for its objectives that were centred around intelligent innovation.

The Solution

To address these problems, Porsche looked for a solution that would enable the adoption of existing systems and not add more complexity. It managed to integrate its SAP BW/4HANA to the cloud with the SAP Datasphere creating a virtual data which linked all systems, enhancing data management. This restructuring allowed them to efficiently modernize their data landscape. Also, with SAP Analytics Cloud, they had a better data strategy as it automated many workflows and removed the barriers, which allowed staff to safely link and model data.

Key Outcomes for Automotive Industry Challenges

The work of SAP solutions enabled Porsche to achieve several crucial business-specific objectives:

1. Gains in Operational Efficiency: It used to take up to several days for sales team members to prepare for a sales meeting, now this time is down to just a few hours, thanks to easy access to relevant data and insights!

2. Enhanced Data Governance: The new data landscape offers experimentation with the knowledge that data is well managed and within a safe environment.

3. About Improved Decision Making: Owing to the ease of access to helpful sales related data and trends, various stakeholders can make business decisions that positively impact the company.

Porsche, through the brilliant application of SAP Analytics Cloud and SAP Datasphere, has successfully redesigned the core data architecture of the firm, thus enabling to transform performance into success. This case study demonstrates how out of the box thinking and execution of advanced data solutions can help tackle automotive industry challenges and drive efficiency, governance and decision making in high performance businesses.

Electric Dreams and Green Goals: SAP Powering Auto Innovation and Achieving Sustainability Goals with SAP S/4HANA and SAP EHS 

As the use of electric vehicles increases and regulations become more stringent, the automotive sector is at a turning point, integrating new strategies to tackle green manufacturing challenges while ensuring a sustainable future. With the help of SAP solutions like SAP S/4HANA, Product Lifecycle Management (PLM), and SAP Leonardo, automakers are empowered to meet these expectations and reduce the impact of automotive industry challenges by utilizing IoT, AI, and ML technologies. 

For the producers, however, one of the key advantages of SAP S/4HANA is the real-time analytics and the graphical interface that it provides, which allows manufacturers to keep an eye on machines and enhance maintenance strategies, which inversely cuts down on excess and wait. Supply chain efficiency is also improved by increasing the capacity to understand future markets. 

These solutions along with SAP EHS modules play a big role in helping the automotive entities enforce environmental regulations, report compliance breaches automatically, and cut down on infractions. SAP S/4HANA also turns out to be effective in logging the use of inputs and energy resources which allows firms to recognize waste and support sustainable practices. 

In other words, SAP solutions are changing the manner in which automotive companies view sustainability, as it has become possible for companies to create solutions and remain within the set environmental parameters. Such a direction makes it possible for organizations that adopt these technologies to position themselves as leaders in sustainable mobility. 

From Factory to Road Uneecops’ SAP Solutions Help in Achieving Carbon-Neutral Manufacturing  

The quest for sustainability in the automotive industry is not limited to emission cuts but rather, an entire paradigm shift in the production processes. Automakers can now leverage IoT, AI, and smart manufacturing to be sustainable, mitigate automotive industry challenges, and remain competitive with the help of SAP solutions such as S/4HANA, PLM, and SAP Leonardo. These solutions are essential as the industry adjusts to further technological improvements such as greener and more sustainable automotive manufacturing processes.  

Uneecops offers tech-driven automotive solutions to help carmakers, suppliers, and dealerships prepare for the future of mobility. Uneecops helps automotive companies unlock new value, enhance customer experience, and create new business models with our full range of tech solutions. Amplify automotive enterprise efficiency with ERP solutions. 

Achieve a “crystal clear” view of the whole company and reimagine the path to a more efficient and cost-effective setup of the enterprise. Easily perform, manage, and execute all the related activities in the auto industry with the most affordable and intelligent ERP software – SAP S/4 HANA Cloud or SAP Business One. 

View multi-location inventory for Material Resource Planning (MRP) 

  • Logistics and transportation management 
  • Acts as a point solution to manage freight and track any additional expenses 
  • Accelerate product development as per auto industry standards 
  • Run agile automotive production and assembly processes 
  • Logistics and transportation management 

Join the green manufacturing conversation – share your insights with us in facing operational challenges. 

Shweta Bhanda

About the author

With having a Masters in Mass Communication and Computer Applications, Shweta holds 13+ years of experience in product technical documentation, website content writing, editing, proofreading, content strategizing and managing other content marketing and digital initiatives.