Vehicle Sales Management

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1 Solution in Detail Automotive Executive Summary Contact Us Vehicle Sales

2 Optimizing Your Wholesale Business Efficient Sales Collaborative Operation Faced with declining margins, automotive sales organizations are restructuring their sales channels. More efficiency and transparency into operations, vehicle distribution, profitability, and customer satisfaction are key to their success. Customer and Vehicle Insight 19% Higher sales as a percentage of target when the extended sales team communicates and collaborates on opportunities Source: SAP Performance Benchmarking Vehicle profit margins are decreasing globally, with even small gains being constantly threatened by financial pressures. To increase channel revenue and reduce operational costs, the number of multibrand sales organizations has risen dramatically. In addition, dealers are consolidating into dealer groups and multifranchises. These new channels make up a growing percentage of all vehicle sales and revenue. Your business must develop and manage all its sales channels more effectively and efficiently, in addition to establishing strong partnerships with new emerging channels. What s more, you need to provide your partners with tools and information that enable them to effectively sell your products and give your customers the best impression of your brand. 1 / 19

3 Collaborating to Run Your Business Efficient Sales Collaborative Operation To run your business most effectively, it s important to streamline your vehicleordering processes, especially when working across multiple brands and regions. Customer and Vehicle Insight Automotive sales organizations need to improve the way they collaborate with their sales channels. This increases transparency and efficiency over operations and the vehicle distribution chain resulting in better profitability and customer loyalty. Sales organizations also need the flexibility to react immediately to changes in customer buying behavior, in addition to government regulations. To meet these objectives, your business needs to: Establish integrated, scalable processes that can be implemented company-wide to support and enable continued growth Provide sales channels with instant access to accurate, company-wide inventory data to prevent the unnecessary back and forth that can slow sales Improve visibility with predefined key performance indicators (KPIs) The SAP Vehicle for Automotive package addresses the issues your business encounters in a multibrand and cross-region environment, enabling you to handle the pressure on volume, margins, and performance. 2 / 19

4 Raising Revenue and Customer Loyalty Efficient Sales Collaborative Operation Customer and Vehicle Insight Integrated and collaborative sales processes offer a multitude of benefits for your business. They increase profit and revenue across your network by enabling you to accurately forecast demand and reduce supply costs. They also lead to higher levels of customer satisfaction and retention. The SAP Vehicle for Automotive package enables integrated and collaborative sales operation planning and execution in order to: Synchronize supply and demand by automatically allocating vehicles to dealers and optimizing inventory levels 25% Auto companies following a rules-based process to prioritize dealer allocations when product is limited Source: SAP Performance Benchmarking Provide insights into dealer performance and profitability while measuring operational efficiency and analyzing sales key performance indicators Accurately predict each vehicle s exact delivery date 3 / 19

5 Efficient Sales Collaborative Operation Customer and Vehicle Insight SAP Vehicle for Automotive optimizes the wholesale process, cutting costs for distributors and importers while giving dealers greater access to vehicles. You can deploy the Web-based dealer portal via SAP NetWeaver Business Client software to communicate better with dealers. Analytic tools integrated into the SAP NetWeaver Business Warehouse (SAP NetWeaver BW) application enable distributors and importers to better analyze sales and vehicle data. Mobile solutions from SAP give sales professionals continuous access to customer information, vehicle status tracking, and sales reporting. This enables your business to respond faster and make smarter decisions that increase customer satisfaction and retention. 4 / 19

6 Better Distribution Chain Ordering and Administration Value Map Why SAP? Improve vehicle distribution and allocation by managing customized orders and trade-ins. Vehicle Ordering and Administration Leverage a real-time Web portal to improve communication, streamline procurement, and cut cost. 5 / 19

7 Vehicle for Automotive Companies Ordering and Administration Sales and Marketing* Vehicle Ordering and Administration Value Map Why SAP? Marketing Vehicle Marketing* Vehicle Marketing Activities* Sales and Distribution Safety Stock Planning Supply Network Planning Dealer Vehicle Ordering Procurement Vehicle Procurement SAP Vehicle for Automotive boosts marketing and sales performance. It also streamlines, automates, and integrates processes supporting vehicle sales. *Optional 6 / 19

8 Capabilities Benefits The SAP Vehicle for Automotive package helps wholesalers and dealers manage customized orders and trade-ins to improve allocation and distribution. 12% Higher sales forecast accuracy when sales planning is integrated with manufacturing, production planning, and supply chain management Source: SAP Performance Benchmarking By running SAP software, automotive sales organizations like yours gain a centralized, real-time solution for ordering, tracking, and managing build-to-order and locate-to-order vehicles. It can streamline sales processes, generate sales forecasts, and enable better push (make-to-stock) and pull (make-toorder) strategies. It delivers holistic and flexible ways to monitor distribution chains from OEM to dealership, as well as collaborate with partners and allocate trade-ins. This results in faster fulfillment, more distribution transparency, fewer days in inventory, lower carrying costs, and better data analysis. 7 / 19

9 Easier Collaboration Across Channels Capabilities Benefits 25% More channel managers making quota when sales can access real-time customer price and service agreement information Source: SAP Performance Benchmarking The sales and distribution functionality in SAP Vehicle for Automotive provides a unified way to procure, manage, sell, and track vehicles based on push and pull strategies. A central cockpit makes it easier to manage vehicle relationships, collaborate with partners, and optimize vehicle management operations. The software also provides a vehicle manager feature to monitor both the vehicle and customer side of your business. The software supports all channel partners with real-time access to all relevant data sources. By allowing collaboration among partners across the supply and distribution chain, it optimizes processes and minimizes inventory. You can also run reports from multiple data sources. You gain an integrated, central tool for managing vehicle sales and distribution and for buying vehicles from OEMs. What s more, the software tracks all information regarding customers, business transactions, relationships, and vehicle configurations for smarter decision making. 8 / 19

10 Improved Vehicle Distribution and Allocation Capabilities Benefits The SAP Vehicle for Automotive package lets you reduce order fulfillment lead time, days in inventory, and carrying cost while increasing accurate sales forecasts and inventory turnover. 32% Lower expedited transportation spend when distribution planning is based on the available vehicles for each location Source: SAP Performance Benchmarking The software supports build-to-order processes for new vehicles made to customer specifications. It holistically manages the entire distribution chain from OEM to importer, right down to the dealer-ship. By increasing visibility and cutting cost, it helps you create a unique buying experience for customers. The solution also supports locate-to-order processes for new vehicles that exist as finished goods. A powerful vehicle search tool allows allocation that best meets customer demand. It s centered on both the customer and vehicle, enabling configuration, search, order management, and vehicle tracking. To support used-vehicle management, the software provides a flexible approach to managing vehicle trade-ins. Once a new vehicle is sold, buy-back conditions such as the return date and price are defined. When the vehicle is returned, evaluated, and serviced for retail, it s then made visible to the entire dealer community and sold in a locate-to-order scenario. 9 / 19

11 Innovations for Vehicle Capabilities Benefits SAP technology innovations lower the cost for wholesalers and importers to manage the vehicle distribution chain. Insert image # here 17% Lower inventory carrying cost when using what-if scenarios to evaluate problem resolutions Source: SAP Performance Benchmarking Analytics Integration with SAP NetWeaver BW provides analytical functionality that improves your assessment of sales and vehicle information. User Experience A configurator based on the Web Dynpro development environment simplifies the configuration and maintenance of master data. 10 / 19

12 Vehicle Ordering and Administration Ordering and Administration Capabilities Benefits Leverage a real-time Web portal to improve communications, streamline procurement, and cut costs. 12% Faster order receipt to release for the make-to-stock scenario when customers and business partners can place orders without manual intervention Source: SAP Performance Benchmarking The SAP Vehicle for Automotive package provides you with a Web portal that supports real-time interactions with importers, wholesalers, and distributors. You get a unified approach to managing, ordering, and tracking vehicles. The software allows you to integrate sales processes and leverage both push (make-tostock) and pull (make-to-order) strategies. You can make smarter decisions by collaborating with partners, monitoring supply chains, and accessing important business data. 11 / 19

13 Optimized Dealer Order Fulfillment Ordering and Administration Capabilities Benefits 45% Faster order receipt to ship for make to stock if dealers use real-time order, delivery, and billing data on the Web Source: SAP Performance Benchmarking The SAP Vehicle for Automotive package features a dealer portal that allows you to connect to an importer, wholesaler, or distributor via the Internet. This online access enables your dealership to be tightly integrated into the importer s internal processes, while a user-friendly interface simplifies your business transactions. The software also integrates the complete sales process from when you obtain the vehicle until it s delivered to your customer so you can collaborate across all channels. With real-time visibility into the vehicle distribution chain, synchronized supply and demand, and centralized data, you can fulfill your customer orders more efficiently. 12 / 19

14 Ordering and Administration Capabilities Benefits Reduced Collaboration Cost and Increased Dealer Retention By adopting standards for collaborating with dealers and channel partners, you can decrease operational costs and improve visibility. 60% Lower order-to-cash headcount costs when companies automatically reconcile and respond to claimed vs. accepted amounts Source: SAP Performance Benchmarking The vehicle ordering and administration functionality of SAP Vehicle for Automotive can increase your industry knowledge, improve partner communications, accelerate ramp-ups, reduce costs, and deliver personalized services that meet the needs of increasingly sophisticated customers. The software reduces PO errors by integrating your operations with an importer s internal processes. It also decreases order fulfillment lead time by sharing consistent real-time data with all channel partners. What s more, it reduces procurement cost by utilizing a user-friendly interface to simplify the way you do business with importers. By using the solution to provide better customer service, you can increase customer loyalty and retention. 13 / 19

15 Innovations for Vehicle Ordering and Administration Ordering and Administration Capabilities Benefits SAP innovations lower the total cost of ownership for the wholesaler or distributor and improve dealer communication. Insert image # here 33% More reports with the availability of self-service analysis, reporting, and visualization Source: SAP Performance Benchmarking Analytics Integration with SAP NetWeaver BW provides superior analytics that can help you better evaluate your channel effectiveness and efficiency. User Experience Vehicle ordering and administration is available as a Web-based solution that can be deployed using SAP NetWeaver Business Client to better communicate with dealers through an intuitive interface. 14 / 19

16 Marketing, Sales, and Aftermarket Value Map Dealer Business Vehicle Sales and Administration Parts Vehicle Service Ordering and Administration Value Map Vehicle Vehicle Ordering and Administration Sales and Distribution Why SAP? Customer Service, Support, and Warranty Service Contract Field Service Complaints, Returns, and Warranty Multichannel Marketing Customer Insight and Segmentation Campaign Loyalty Social Media Analysis and Engagement Real-time Offer SAP Vehicle for Automotive boosts marketing and sales performance. It also streamlines, automates, and integrates processes supporting vehicle sales. 15 / 19

17 Why SAP? SAP empowers automotive companies like yours to speed up product innovation, improve quality, cut manufacturing costs, and sell and service vehicles more profitably. This helps grow market share in a highly competitive global market. Ordering and Administration Value Map Why SAP? Tightly Integrated and Comprehensive Business Solutions SAP delivers a comprehensive and fully integrated portfolio of business software for automotive companies. Breakthrough Innovations The SAP solution portfolio offers automotive companies a robust and innovative technology foundation that includes applications, in-memory computing, mobile solutions, analytics, and cloud solutions. The full portfolio optimizes business processes and drives efficiency at the lowest possible cost. 40 Years of Delivering Value to the Automotive Industry The world s most successful automotive manufacturers, suppliers, and sales and service organizations rely on SAP software to provide the foundation that drives performance and competitive edge. 16 / 19

18 Find Out More About How Your Organization Can Become Best-Run Benchmark Your Performance Position your organization for dominance in this new economy with the business performance benchmarking program from SAP available free to SAP customers and select prospects. The SAP benchmarking program has helped more than 3,000 organizations assess their strengths, uncover areas for improvement, and identify best practices and IT strategies that generate clear, tangible value not someday, but today. Go Live in Weeks Here s the fastest way to run your business better: our rapid-deployment solutions. In one package, you get everything you need to be up and running quickly including preconfigured software and implementation services in just weeks. With a defined scope and predictable costs, there are no surprises. Join Your Community of Practices Visit valuemanagement.sap.com >> Visit sap.com/solutions/rds >> Every day, SAP Community Network (SCN) changes the way that thousands of SAP users work. It lets members help one another solve problems, learn, and invent new ways to get things done faster. Find out how to connect with people, content, and resources. Visit scn.sap.com >> 17 / 19

19 Solution in Detail Automotive Executive Summary Contact Us CMP (13/03) To go for a test drive, visit us online at Also visit us on our community pages to find out more:

20 No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP AG and its affiliated companies ( SAP Group ) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Please see for additional trademark information and notices.

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