Big Data

What You Need to Know About SAP in the Automotive Industry

Technological advancements have, over the years, led to significant development in all spheres of human life. With the evolution of digital technology, industries have changed their business patterns to accommodate these advancements and boost efficiency. As a result of this digital spread, automotive industries began changing patterns to compete and improve in today’s advanced world. One of such patterns of improvement is the invention of SAP.

What is SAP?

SAP is software for automobile industries that offers a user-friendly solution, manages the functions of sales in business, finances, listings and investments through a single platform.

Benefits of SAP to Automotive Industries

The advantages of SAP in automobile industry cannot be overemphasized, these benefits include:

  • Improving the planning and control of both small and large-scaled automotive firms.
  • Enhancing accuracy in the automotive processes.
  • Creating a better interaction with clients.
  • Improving efficiency, thereby increasing the amount of revenue generated.
  • Reducing the workload on humans and as such improving human efficiency in other required areas.
  • Enabling automatic notifications on urgent demands.
  • Eliminating backlogs in finances.

Major Units of SAP Business Suites

There are five major units of SAP business suites, these suites are designed to meet the demands of all spheres in business.


The SAP ERP (enterprise resource planning) solution is one such unit. It functions to manage the key business processes of an organization which include; operations (production, marketing and distribution), finances, human capital management, and corporate services. There are three subunits of this unit which include;

  • SAP business one: this is designed for small and medium enterprises (SME).
  • SAP Business by design: this also is designed for small and medium scale businesses. Its function is to provide business processes with input analysis, mobility and support.
  • SAP S/4HANA: this is built for large enterprises. Its function is to manage all day-to-day processes of an enterprise, such as; request-to-service, order-to-cash, etc.


A second unit is the SAP CRM (customer relation management) solution, this unit is built to compile data from a wide range of communication channels such as; company’s website, telephone calls, email, and social media.


SAP PLM (product life cycle) solution is the third unit. Designed to manage the entire life cycle of a product starting from its date of production, this unit integrates data, processes and people.


A fourth major unit is SAP SCM (supply chain management), this unit is built to manage the flow of goods and services from one location to another.


Finally, SAP SRM(supplier relationship management solution). The purpose of this unit is to manage the strength of suppliers and determine the various interaction mechanisms for different suppliers.


The analog way of penning down important business events, reports of production and inventories came with its inadequacies and erroneous results. SAP solution automatically notifies, tracks, and reports accurate production data efficiently and reliably. With SAP solutions, your inefficiencies would turn into accuracies, and all sectors of your automobile businesses would be easily and fully integrated.

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