Automotive Solution Brief for Dealer and Vehicle Management

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1 4most Enterprise Manager powered by SAP Business One Automotive Solution Brief for Dealer and Vehicle Management Run your business the way you want to! Anywhere Anytime On Any Device In Real-Time All of the time One Simple Solution to Manage Complex Processes Automotive Companies today are facing volatile, uncertain changes in consumer demands. The need to evolve and adapt strategic outlines as well as manage their roles in emerging and mature markets is a major priority. While riding the upturn in the industry, the focus lies in competitive differentiation through among others, cost reduction and operational efficiencies. The need for collaboration between Original Equipment Manufacturers and Dealers as well as across the value chain looks to a restructuring of the business for integration and the ability to become flexible in the new operating environment. A complete solution tailored for the Automotive Sector Specifically developed, tried and tested, for the Automotive Sector, The 4most Enterprise Manager powered by SAP Business One provides a Dealer Management System for Large Manufactures (Original Equipment Manufacturers) as well as Vehicle Dealerships (Sales and Service), delivering an integrated dealer management solution a single system that automates processes and delivers a reliable, unified picture of operations based on up-to-the-minute information. Simple yet powerful, EMA can be easily tailored to fit your specific needs today, and adjusted to meet changing needs over time. Foster closer and better customer relationships to build customer base Achieve efficiency and transparency through integration with the supply chain and throughout the lifecycle of the vehicle Access accurate, complete information to respond to market needs Proactively focus on driving business forward

2 Page 2 EMA powered by SAP Business One How do market leaders maintain their financial performance while facing these unexpected, whether currencies, resource availability, competition or emerging market economic conditions? It is evident that those companies that can be successful through driving synergies and collaboration, getting the right product to the right market in time, and managing the significant quantity of new launches, will gain the competitive share of the market. This can be achieved through the leveraging of IT and data analytics to streamline critical business process requirements such as: Full Standard Functionality Customer Analytics Optimized Global Manufacturing Footprint Streamlined data integration across geographies IT process optimization Analytics around operating processes and the supply chain Data security Multi-channel management Compliance Regulatory Reporting SAP Business One includes all the fundamental business requirements you need to run your entire business, and with the interoperation of the 4most Enterprise Manager, the automotive specific functionality required is delivered in a cloud environment and local intranet providing: Real-time, accurate visibility into integrated operations Simple secure remote access to data from anywhere at any time on any device Drastically reduced TCO and IT infrastructure costs An increase in staff productivity and service delivery The ability to grow your business footprint quickly and simply The standard functionality that you can expect from SAP Business One supports and integrates all your key business processes in a non-corruptible manner, and with this true and unified view of operations, critical, up-to-theminute information is available to make educated and informed business decisions. SAP Business One key functions facilitate: General Ledger Payments Cost Accounting Logistics Procurement Warehouse Management Manufacturing Project Management Customer Relationship Management Opportunity Management Pipeline Management Service Management Business Intelligence Analysis Instruments To insure the security and integrity of your business data, none of the core financial and accounting modules will be exposed within the cloud environment. However, by lifting the general functionality selected, the 4most Enterprise Manager creates a flexible approach to managing the total solution infrastructure and operational business model. This business model provides 4most Enterprise Manager user s with an easy-to-use web interface which gives them access, on or off site, to the relevant integrated modules. Standard EMA features empower users to easily format layouts and reports, select their language of choice from 52 available languages and more. In addition users running off of EMA are offered as a monthly rental option.

3 Page 3 Original Equipment Enterprise Manager Manufacturers are not used to having a direct relationship with customers. They are accustomed to pushing vehicles to dealerships, who manage customer relationships. Connected Vehicles and Mobility are forcing them to reconsider. Integrating the vehicle in the ecosystem in which we live is vital to adapting to the new operating environment. The world trend is related directly to the technological evolution in CRM to know your client, and is a vital part of maintaining the competitive edge. The alignment, therefore, of Manufacturers ( Original Equipment Manufacturers) to dealerships and their customers is crucial. Dealing with the customer, to ascertain demand and react to evolving and emerging markets, is becoming more and more complex. Technology allows for the flexibility required to adapt as well as to connect with the customer, throughout the entire lifecycle of the ownership of the vehicle. The complexity of this collaboration and the processes used to manage these functions has in the past required the implementation of a monster of systems, which have proved difficult to integrate, maintain and use. A single, easy to use, accurate system, which provides up-to-the-minute information, is required to develop more practical ways of managing flexible manufacturing strategies as well as changing operational requirements. The 4most Enterprise Manager powered by SAP Business One (EMA) simplifies complex processes by leveraging technology to drive collaboration across organisations by integrating: Forecasting Procurement Production Sales Aftersales Logistics Marketing Finance Human Resources Forecasting Increasing Revenue Improving Customer Service Improving Service Delivery Increasing Transparency and Accountability Reducing Operating Costs Increasing Efficiency Increasing Speed Lowering Working Capital Order-to-Delivery Managing Fixed Assets and Resources And More High Visibility in monitoring and optimizing for retail processes is a key requirement for vehicle sales and distribution within the automotive industry. New regulations and the rising need to increase client satisfaction within the vehicle buying experience, renders the industry and process subject to change. Accurate, detailed insight into these processes improves their efficiency and decrease the cost. New Vehicles Production Order Parts Vehicle Pricing

4 Original Equipment Enterprise Manager Page 4 Procurement The need for accurate traceability of source parts and vehicles has never been more crucial. With studies citing the recall of 22 million and 5.3 million vehicles in the US and China respectively in 2013, an amount of 45 billion US dollars spent by the auto sector annually on warranties and recalls is the result.* While the only relief may be regulatory control, a solution is required to streamline and manage the procurement process to accurately manage these requirements. Integration with the supply chain is achieved by the Enterprise Manager through the tracking of: New Vehicles (CKD) New Vehicles (SKD) New Vehicles (CBU) Used Vehicles (Buy Back) Imported Parts Local Parts Marketing Material General PDI Incentives Vehicle Delivery Up fitments Vehicle Repairs Vehicle Storage Parts Storage Employee Travel Production Fulfilling customer demand in time and according to a high standard is vital. Creating flexible manufacturing strategies and business functions to drive operational efficiency is key to achieving this. Production planning allows the planner to work according to these requirements, by enabling him/her to create viable production plans across various production locations in congruence with subcontractors. Rough- cut planning is based on time buckets which encompass long and medium-term timelines. This indicates the resource requirements such as machines, labor ( human resources), production resource tools, and materials. The decision- making process is further supported and improved through solvers, real-time data and high visibility into the supply chain( KPI s, alerts). Optimised order sequences are delivered by detailed scheduling and released for production. Constraints and costs are evaluated and taken into account by scheduling heuristics and solvers who, based on business objectives, schedule and optimise the order sequence accordingly. The visibility of the product flow is further enhanced through dynamic alerts and order pegging structures. The planner is supported by what-if simulations and evaluations of order sequences to enable flexibility and control. Material shortages or critical resource situations can be seen immediately due to the integration with execution and inventory management systems. This visibility allows for the subsequent manual or automatic adjustment of schedules. The Enterprise Manager s production module supports the following functionalities: Make-to-Stock Make-to-Order Operational Procurement Inbound Logistics Bill of Materials Material Requirements Planning Routing Back flushing Creating Flexible Manufacturing Strategies Rapidly Align with the Changing Conditions Execute Sustainable Production Operations Conduct Efficient Manufacturing Processes Ensure Quality Through Tracking & Tracing

5 Page 5 Original Equipment Enterprise Manager Maintaining and gaining the competitive edge in a multidimensional market requires OEM s to focus on the drivers to achieve such success. Studies show these drivers to include high growth market share (geography and segment), OEM and dealer integration, flexible IT systems, competitive pricing, incentives and financing. Sales In addition, carmakers cite the driving force to include collaboration across the ecosystem and the provision of fuel efficient, low emission vehicles. While suppliers state their value proposition requirement to be the ownership of innovation and platform consolidation at OEM s. To deepen customer s association with brands, the use of accurate customer data as well as providing customised solutions, while securing privacy looks to digital transformation and the need for capable enabling systems.* Sales EMA enables Dealers to link customer requests and vehicle orders with available stock at the OEM s site within the enterprise and the pipeline. This is enabled by vital locate-to-order and build-to-order processes which in turn reduces administration, finance and the daily operational activities associated with vehicle sales. The ability to compile vehicle history is enabled through comprehensive vehicle data administration. This includes and begins with planning, then sales and distribution, up to and including after-sales processes involving warranty claims, services, vehicle trade-in and resale. The retail transaction prices is also defined by the solution including sales quotation and sales order, by dealer location, customer, and brand for newly configured vehicles and used vehicle sales. In addition, legal requirements are satisfied by country specific tax calculations and are settled directly through accounting. Manual work is reduced as a result of the integrated document flow from sales order to accounting and transparency into the entire value chain to the dealer is also enhanced. New Vehicles New Vehicle (SVO) Used Vehicles Parts Training Facility Billing Incentive Marketing Dealer Pack Aftersales Customer loyalty and retention can be assumed to be the result of an excellent customer service discipline. This can be deduced through the indication that over two-thirds of automotive customers rank quality and convenience as a key decision making criteria when evaluating a brand or a dealership. Whether the customer s vehicle requires a service or the customer contacts the brand owner directly or via an intermediary interaction center, there needs to be a consistent and reliable level of communication and service offerings across multiple channels. Warranty Service Plan (Model Specific) Customer Care Technical Support Roadside Assistance

6 Page 6 Original Equipment Enterprise Manager Logistics Service parts management can be seen as a bitter-sweet business. In part it delivers much better profit margins than selling vehicles but can also offer major challenges in the area of logistics. This is characterized by very high numbers of stock keeping units (SKUs), high volumes of orders with very few pieces per line item, daily varying demand, and highly frequent engineering changes and so on. The availability of service parts as well as their price have a marked impact on customer satisfaction and here the requirement is to keep service levels high as well as to maintain minimal levels of inventory Marketing Receiving Stock Control New Vehicles Repairs Dispatch Core Refurbishment Automotive companies face a competitive market and are under pressure to not only attract prospects and to win over new customers, but just as importantly to develop trusted relationship which results in capturing retained long-term customer value. In today s day and age, customers look for individual mobility when buying a vehicle. A brand image which matches their lifestyle is also an influencing factor. Relationships to the vehicle itself need to be managed along with managing customer relationships. As vehicles are sold through an indirect channel, down to the dealership network, a tight collaboration with the dealerships is vital to achieving an excellence in sales & service processes and thus winning market shares. Lead Management Campaigns Finance With over 221 billion dollars in cash and equivalents balance cited for top OEM s at the end of 2013*, Financial Management and finance based decision making remains at the core of every business. The Enterprise Manager provides the critical integration of accurate information and facilitates the performance of: Management Accounting Accounts Payable Accounts Receivable Treasury Costing Statuary Reporting Asset Register In addition the human resource management feature provides functionality to integrate advances and reimbursements. Increasing Revenue Improving Customer Service Improving Service Delivery Increasing Transparency and Accountability Reducing Operating Costs Increasing Efficiency Increasing Speed Lowering Working Capital Order-to-Delivery Managing Fixed Assets and Resources And More

7 Page 7 Dealer Enterprise Manager SEM Sales and Service Uncertain economic conditions, intensified competition, and new customer demands magnify the pressure that Dealers face. Responding effectively to this pressure requires dealerships to achieve new levels of control over their dealer operations. However, traditional dealer management applications which are often poorly integrated collections of outmoded applications no longer support a dealership s changing needs. Information gaps, dealer process breakdowns, and old data inhibit dealer owners ability to control operations. These systems isolate dealer-critical information in multiple locations that are not interconnected, forcing users into time consuming workarounds just to get the job done. The result: missed market opportunities, wasted effort, and costly inefficiencies. To thrive, dealerships need an affordable, integrated dealer management solution a single system that automates processes and delivers a reliable picture of operations based on up-to-theminute information. EMA powered by SAP Business enables users to get the information they need, when and how they need it, to run dealer operations and to become more responsive to customer needs. This single, easy to use, affordable solution integrates business critical processes. Customer Management By having critical vehicle, sales and customer information on hand and in an accessible simplified manner, dealers can enhance existing customer relationships and attract new prospects. This is a key factor which affects the ability of sales personal to actively turn more leads into customer conquests and satisfied customers. Customer appointments for test drives, calls or visits, recording customer comments and work flow for customer follow-up are managed and supported by the solution through integrated office functionality. Furthermore, the solution provides greater transparency to analyse and react to core sales processes at a dealership. In addition to this, data that includes sales transactions, contact, customer and vehicle data can be leveraged to support targeted marketing activities. Interaction Center Helpdesk Complaints Processing Financial Qualification Financial Application Customer Relation Management Management Information Efficient sales planning and management Improve customer retention and loyalty Improve sales lead generation and process Improving Customer Service Improving Service Delivery Increasing Transparency and Accountability Reducing Operating Costs

8 Page 8 Dealer Enterprise Manager SEM Vehicle Management Dealers are able to link customer requests and vehicle orders with available stock at their site within the enterprise and the pipeline. This is enabled by vital locate-to-order and a build-toorder process which in turn reduces administration, finance and the daily operational activities associated with vehicle sales. The ability to compile vehicle history is enabled through comprehensive vehicle data administration. This includes and begins with planning, then sales and distribution, up to and including after-sales processes involving warranty claims, services, vehicle trade-in and resale. The retail transaction prices is also defined by the solution including sales quotation and sales order, by dealer location, customer, and brand for newly configured vehicles and used vehicle sales. In addition, legal requirements are satisfied by country specific tax calculations and are settled directly through accounting. Manual work is reduced as a result of the integrated document flow from sales order to accounting and transparency into the entire value chain to the dealer is also enhanced. Vehicle Dashboard Incentive Management Vehicle Inventory Management Parts Management The availability of critical parts at a dealership is key to achieving true customer satisfaction. When considering multi-brand dealerships, this need is pronounced, as the careful planning and considerations of brand, inventory levels and part availability, is carried out by Service and Parts Managers while balancing working capital with customer service. The effective evaluation of the trade-offs between part inventories, increasing service levels and customer satisfaction objectives by dealership personnel is enabled by Parts Management. Comprehensive part requirements planning, procurement, inventory management, cross-location availability checks, and counter sales of service parts for dealership is supported by the Dealer Management System. In addition to this, collaboration with all relevant business partners, such as regional parts depots, suppliers, other dealerships, as well as monitoring and analysis of parts operations is facilitated through parts management. Vehicle Execution Vehicle Administration Management Information Vehicle Evaluation Management Blue Book Management Customer Relation Management Vehicle Tracking Management Auto Deal Management Opportunity Management Floor plan Management Own Use Vehicle Management Manual Deal Management Costing Management Fleet Management Profitability Management 3rd Party Supply Integration Consumable Management Alternative Part Management Consignment Stock Management KIT Management Incentive Management E-Integration Management Customer Relation Management Management Information Parts Administration Parts Planning Parts Execution Parts Storage Locations Parts Cash Desk Exchange Unit Management Parts Catalogue Management Service Center Administration OEM Integration Management

9 Page 9 Dealer Enterprise Manager SEM Service Center Management Customer loyalty and retention, and ultimately dealer profitability can be assumed to be the result of an excellent customer service and service management discipline. This can be deduced through the indication that over two-thirds of automotive customers rank quality and convenience as a key decision making criteria when evaluating a brand or a dealership. The Dealer Management System provides efficient service order processing and billing designed for any given number of orders per day. Service requests and scheduling, optimization of technicians, tools, and parts as well as their deployment and scheduling is included. Ease of use is enabled through user friendly interfaces and a seamless and smooth business process into OEM channel systems, including part catalogues, job and package catalogues, vehicle history files, warranty systems, etc.is as a result of the integration technology. The visibility in overall fixed operations is enhanced through service monitoring and analyses and helps increase service capacity utilization, efficiency and decreased operating cost. Work Bay Management Service Call Management Job Estimation Management Management Information Resource Management Courtesy Vehicle Management Sublet Order Management Warranty Management Manufacture PDI Management Enhance your Control Contact us today to find out how you can begin to receive the benefits of the 4most Enterprise Manager powered by SAP Business One: Get a true and unified picture of the dealer, Instantaneous access to critical information across CRM, service, and finance, Immediate notification and automatic response to important dealer events, Ability to cost-effectively grow with the needs of the dealer, User empowerment, Quick time to benefit. Fixed Price Package Management Vehicle Management Management of Labor Rates Schedule Management Service Pack Management Split Billing Management E-Integration Management Future Service Call Management Service Call Progress Management Customer Relation Management Incentive Management Service Center Dashboard Service Center Administration Time Clocking Management Management of Knowledge Base Service Call Execution Vehicle Recall Management Service Contract Management Vehicle Valet Management In summation, the 4most Enterprise Manager powered by SAP Business One, provides all the functionality your business needs, with greater flexibility, at a lower cost. Increasing Revenue Improving Customer Service Improving Service Delivery Increasing Transparency and Accountability * Cited text based on EY s second annual automotive executive survey: Changing Lanes 2014/2015 The automotive C-suite agenda Reducing Operating Costs And More

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