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Automotive

SAP S/4HANA Automotive Case Study: Keeping Pace With OEM Schedules

OEM delivery schedules arrived by EDI and were handled by hand, so expediting costs ran high and lines risked stopping. SAP S/4HANA automated scheduling and supply, and on-time delivery climbed to 99 percent.

99%
On-time to OEMs
30%
Less expediting cost
16 wk
Go-live timeline
Industry
Automotive Components
Company Profile
Tier supplier, around 500 staff
SAP Scope
S/4HANA, PP, MM, SD, EDI
Go-Live
16 weeks
The Challenge

OEM schedules handled by hand, expediting by default

Delivery schedules from the carmakers arrived by EDI and were keyed into a planning sheet by hand. Changes came often, so the team chased parts and paid for express freight to avoid stopping an OEM line. A late delivery risked a costly penalty.

  • EDI release schedules were re-entered manually and fell behind changes.
  • Expediting and express freight were a constant, expensive habit.
  • There was no clear just-in-time view of what was due when.
  • A missed window risked OEM penalties and line-down charges.
The Solution

Scheduling agreements and EDI inside SAP S/4HANA

We set up SAP S/4HANA with scheduling agreements, EDI integration to the OEMs and demand-driven replenishment, so release schedules flow straight into planning and supply reacts to real demand.

  • OEM EDI releases post straight into scheduling agreements.
  • Demand-driven replenishment keeps the right buffer, not excess.
  • Planning sees every due date and quantity in one place.
  • Shipping and labels follow OEM packaging and ASN rules.
S/4HANA PP MM SD EDI
How We Delivered

Tested EDI with the OEMs before cutover

We ran end-to-end EDI tests with each OEM connection so releases and shipping notices matched their rules before go-live. We trained planners on the new schedule view and ran a parallel week to confirm the numbers.

Go-live took sixteen weeks, including OEM EDI testing.

The Outcome

On time to the line, with far less expediting

On-time delivery to OEMs reached 99 percent because releases flow straight into planning and supply tracks real demand. Expediting cost fell by 30 percent, and the team stopped firefighting changes that the system now absorbs.

The OEM releases now drive our plan on their own. We stopped paying for express freight to cover misses, and our delivery score with the carmakers has never been higher.

Supply Chain Director, Automotive

What changed after go-live

99%
On-time to OEMs
30%
Less expediting
EDI
Releases automated
16 wk
From kickoff to live
Start Your Project

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