Acloudear Club | Sharing Network Helps Auto Parts Enterprises to Reach a New Digital Mileage

Author:Acloudear , 2022-10-24 18:34   
Gather the successful digital transformation achievements of hundreds of auto parts enterprises to help more auto parts enterprises clearly outline the digital transformation path.

Today, the automotive industry is moving from mechanization to electrification, networking, intelligence and sharing, and moving forward from the traditional industrial era to the digital era. The focus of market competition is turning to high-tech represented by digitalization, opening the second half of the automotive industry revolution. When 70% of the technological innovation in the automobile industry comes from the reorganization of digital technology, the digitalization of the automobile parts industry, as the basis of the automobile industry and an important force supporting the complete vehicle revolution, has become an important support for the transformation of the entire automobile industry.


Based on this, in 2021, the world auto parts giants from Bosch, Continental, ZF, Qualcomm and other different segments will join hands with digital suppliers to accelerate the digital transformation. Leading domestic enterprises and cutting-edge enterprises are accelerating their efforts to digitize, empower the depth of quality improvement, cost reduction and efficiency enhancement, enhance core competitiveness, and stride forward towards “new generation” auto parts enterprises. And those auto parts enterprises that fail to seize the opportunity and catch up with the digital “train” are easily abandoned by the market.


Looking at the digital status quo of domestic auto parts enterprises, the polarization is particularly obvious: leading and emerging enterprises attach importance to digital transformation, and the pace is fast; A considerable number of enterprises pay little attention to digital transformation and act slowly. The fundamental reasons are: quite a few auto parts enterprises lack specific and effective guidance for digital transformation, and many enterprises lack effective paths, models and capital investment; The relevant digital infrastructure is not perfect, and there is a lack of compound talents who are familiar with auto parts and digitalization, which is difficult to provide strong support for the digitalization transformation of auto parts enterprises.



Empower auto parts enterprises

Acloudear Network in Action


In order to help more and more domestic auto parts enterprises find the right direction, clear the course and quickly start digitization in the turbulent industry reform and digital wave. A thought sharing meeting with the theme of “Parts enterprises moving towards a new mileage in the process of digitalization” came into being. Acloudear, a digital strategic transformation service provider and SAP platinum partner, has brought leading experience, successful cases and professional solutions to the majority of auto parts enterprises, which has become a guiding light for enterprises to promote efficient and pragmatic digital transformation.



In the field of auto parts and even the whole vehicle, the sharing network has a profound accumulation. Over the years, we have continued to provide a series of professional and pragmatic digital reconstruction and transformation services, such as digital transformation diagnosis, strategic planning and scheme implementation, for enterprises in the industry, and successfully achieved digital transformation for CNHTC, Goodyear, Shitai, Wanxiang Group, Webco, Cargotec, Continental, Haicheng and other companies.


By gathering the successful digital transformation achievements of hundreds of auto parts enterprises, this Sixiang Fair will help more auto parts enterprises clearly outline the digital transformation path, provide practical transformation guidance based on the best industry practices and successful cases, and accelerate the digital transformation pace.



Digital transformation of automobile parts

Acloudear will light up the transformation beacon


Mr. Wang Qi, Vice President of Acloudear’s network consulting implementation, brought a series of professional suggestions that are easy to understand, practical and executable, in response to the series of problems that people generally pay attention to, such as the effective path and difficulty of digital transformation of auto parts enterprises.



Difficulty 1: How to transform the auto parts enterprises into digital ones? From which aspects?


Sixiang Network suggests that the digital transformation of auto parts enterprises must be carried out around better supporting business strategies. Specifically, the digital transformation is mainly carried out from three aspects: business model, work environment and business model. Companies of different stages and types seek the best entry point according to the actual situation: from the business collaboration of external upstream and downstream partners? Start with the integration and lean operation of internal management… It needs to be diagnosed and clarified according to the actual situation.



At the same time, in view of the three aspects of digital transformation, the company’s sharing network has listed three classic digital innovation cases of “Andema”, “Hikvision” and “Royal Dutch Airways” respectively, providing reference for everyone in the direction of transformation.



Difficulty 2: The whole system case of digital transformation of auto parts enterprises that can be used for reference


More and more auto parts enterprises pay close attention to the systematic full case reference of digital transformation of some leading and successful enterprises in the industry. The company selected the successful case of Shitai Shi Plastic Co., Ltd., a Chinese joint venture of STS Group, a world-renowned auto parts manufacturer, as a reference.


“With the help of SAP cloud platform, we can help enterprises establish a highly integrated set of sales, procurement, production and finance, ensure the real-time and accuracy of all data, enhance the financial analysis ability, and further improve the STS management level.” Said Jiang Wei, ITS manager of Shitaishi Plastics Co., Ltd.


Core Scheme I

How to build a digital management platform integrating business and finance to achieve integrated operation?


Through the help of SAP cloud platform, we can build a comprehensive integrated solution of multiple systems for Worcester, so as to open up the integrated application scenarios of SAP Cloud ERP, BarCode and MES, and achieve an integrated platform of group data integration and seamless business connection. A complete end-to-end business process, an all-round integration of industry and finance, and a multi-level management and control system adapt to future changes.


▲ Legend of all-around industry finance integration


Core Scheme II

How to help enterprises achieve highly refined management, reduce costs and improve efficiency?


Through the multi-dimensional financial accounting system flexibly defined by the SAP cloud platform, a refined unified accounting and analysis management platform for industry finance integration is built to meet the needs of multi-dimensional real-time reflection of industry finance information under different parallel systems with different functions of accounting, management, budget, and capital, so as to achieve internal refined cost control for Worcester and greatly improve its profitability.



Through the integration of SAP cloud platform and MES system, the collaborative operation of multiple workshops is improved to make production orderly and controllable. At the same time, the “batch upload function of production suggestions” is developed for them to further deepen the digital application in production.



SAP configures a model to support the whole process management from R&D, sales, pricing to production, procurement and warehousing. For the complicated BOM in the auto parts industry, the unique super BOM solution has become the industry’s first unique solution. It effectively solves the problem that thousands of BOMs are difficult to manage in a fine way.



In fact, the success of Shitai Shi is due to the following six core solutions: multi-level management and control network, industry finance integration, refined finance, planning and production scheduling, procurement suppliers, lean production, and deep applications such as creating super BOMs. Through the above, we have provided our auto parts industry managers with the feasibility and operability of successful transformation.


Difficulty 3: A series of difficulties in digital application of auto parts enterprises


In the “Interactive Q&A” segment of the Sixiang Conference, the guests sought solutions to MRP and cost accounting for the confusion in the digital application of auto parts enterprises.



Q: In the production process of SAP system, MRP will change with the order of the OEM. How to implement MRP in ERP?


Experience shared by Acloudear: If the orders of the OEMs change during the production process, the first thing to see is the change of the orders. Simple quantity changes can be solved by adjusting the order quantity and delivery date, rerunning the MRP system, and supplementing the corresponding orders for the already in production and newly added parts; Complicated categories and category changes must be divided into two categories: ① if they are already in production status, they should be handled through some processes of order restructuring during the production order process; ② If the order has not been completely completed, it can be resolved by changing or canceling the order, re running MRP, and generating a new order request.



Q: How to handle the cost accounting of production outsourcing?


Experience shared by Acloudear: production outsourcing of auto parts enterprises is collectively referred to as outsourcing processing. It is roughly divided into two different types of methods and scenarios, and different solutions are adopted. ① The cost accounting of all subcontracts (which are produced entirely through labor and material contracting by external suppliers) is mainly allocated through purchase costs; ② The cost accounting of some subcontracting (the enterprise provides the raw materials for production, and the subcontracting manufacturer processes them) is mainly handled by using “subcontracting material cost” and “subcontracting service fee cost” as the elements of production cost accounting.



The digital transformation of auto parts enterprises is imperative. The digital transformation and “digital” progress become the key to promote the “new four modernizations” of the auto industry! The collision of ideas is only the beginning of inspiration. A clear path, advanced methods, and excellent digital service partners are the key to accelerating the transformation of auto parts enterprises and moving towards success step by step!


Acloudear, the pioneer of digital strategic services, takes the SAP digital cloud platform as the carrier, successful experience and cases as the basis, and continuously outputs management experience and wisdom for more and more auto parts enterprises. Through leading industrial solutions and best business practices, it accurately implements digital transformation for auto parts enterprises, and advances pragmatically, helping them become a highly competitive “new generation” auto parts enterprise!


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