Mercedes-Benz South Africa (MBSA) has opted for SAP R/3 to provide better customer satisfaction, improved efficiency, global integration and an enhanced technology platform to support its business strategy. SAP R/3, the world-leading enterprise business solution, is now used by well over 80% of the South African automotive OEM market.
"Our mission is to get even closer to our customers, and our long term vision is to make it easier for them to get exactly the vehicle they desire," says Fritz van Olst, MBSA executive sponsor of the SAP project. "We hope to reach the scenario where customers will spell out their precise requirements to a dealer, and these specifications will flow all the way through to our manufacturing plant, resulting in a true make-to-order environment.
"In the shorter term, we will be using the system, particularly the Sales and Distribution module, to forge closer working relationships between MBSA, our dealers and our customers," he says.
Daimler Chrysler AG, MBSA`s parent company, is a SAP user and the implementation of R/3 in the local company will place it within the Daimler Chrysler global network.
"The benefits of this are numerous," says van Olst. "For example, some Mercedes C class models that are sold in Australia are manufactured here in South Africa. As part of the Daimler Chrysler world-wide network, we will be able to ensure more efficient distribution, tracking and logistics within this export process."
MBSA had a mixture of legacy systems that were not year 2000 compliant, did not provide the business and financial information it needed and could not carry out appropriate customer satisfaction activities. With the implementation of SAP`s R/3 solution, it is intended to overcome all these problems.
The company will be working with SAP`s industry-specific automotive solution.
"We have recently completed the design phase for the first major phase of the project," says van Olst. "Phase One of implementation, which we expect to completed by March next year, affects our business support activities. It involves implementing the SAP R/3 Financial module, including cost centre accounting; purchasing of non-production materials, or consumables, from the Materials Management module; the Payroll module and Plant Maintenance module.
"Phase Two will involve implementing SAP across our lines of businesses which are MBPC, Honda and Colt, MBCV, Freightliner, Parts and Component exports."
MBSA has approximately 3000 employees, mostly based in East London, and there will eventually be around 1000 users on the SAP system.
Current SAP R/3 customers in the South African automotive market also include BMW SA, Delta Motor Corporation, Nissan Africa, Toyota SA, VW South Africa, Conlog (Electronics, alarms, harnesses), Kolbenco (Engine components) and DULUX (Automotive paints).
SAP has recently constituted an automotive Centre of Competence which will bring even greater focus to bear on this economically important sector.
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