Toyota South Africa`s vision of world-class competitiveness, an increased market share and production improvement were the prime motivators behind the automotive company`s decision to implement world leading enterprise business software solution, SAP R/3.
Peter Truscott, Project Entrepit: Infrastructure Project Manager at Toyota SA, says the company`s corporate philosophy advocates the `quality rather than quantity` approach. "This was the basis of Toyota`s decision to move from a `make-to-stock` manufacturing and distribution philosophy to a `make-to-order` environment, of which R/3 forms a vital component."
"Customer satisfaction is also a critical focus at Toyota - for us this involves all of our customers, both our vehicle owners and the dealers. Currently, dealers are given three months to forecast, but at that stage, they don`t really know who the customer is and when they will buy. Through R/3 and managing our supply chain, we are planning to reduce this cycle time considerably. The result will be a customer demands-driven operation as opposed to a forecast business.
"As part of the extended supply chain management, we will be utilising technologies such as the Internet for activities including direct client ordering. Looking at the future, we may create a virtual reality sales booth."
The R/3 project at Toyota is called Project Entrepit, standing for ENTerprise Resource Planning In Toyota and has a direct correlation to the English word Intrepid.
Simon Carpenter, product manager - logistics at SAP Southern Africa agrees that South Africa`s automotive industry must become more customer-oriented. "Today, the South African consumer has a far wider choice of vehicles, including numerous imported cars, and the existing OEMs are fighting not only for market share, but for long-term survival. The country`s passenger car market has become one of the most competitive in the world, with over 14 manufacturers in a market that sells 300 000 units per year.
"South Africa`s re-acceptance as a member of the global economy has resulted in the motor industry realising that information architecture, along with sound strategies, customer-focused people and competitive products, is one of the pillars of an organisation. This becomes even more important when one looks at growth opportunities which lie overseas and which require both responsiveness and execution excellence."
Toyota SA is implementing wall-to-wall R/3, with phase one of the implementation comprising the roll out of the financial and controlling modules to the company`s Johannesburg and Durban offices, followed by the installation of the manufacturing modules. Says Truscott: "We have still to decide the final implementation sequence, but have planned the roll-out over a three-year period."
The Toyota Parts and Accessories Division of Toyota SA already runs on R/3, with the primary benefits being improved control of the business, including stock and all the processes.
Toyota SA joins a growing number of South Africa`s automotive manufacturers who have opted to implement the SAP R/3 enterprise solution. Currently, 7 of the top 8 players have selected or are already running SAP R/3.
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