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Thursday, August 19, 1999

SAP targets auto suppliers, distributors to expand base 

P Sreevalsan Menon  
Mumbai, Aug 18: ERP major SAP AG will target suppliers, distributors and auto ancillary manufacturers to expand its automotive solutions base in India.

SAP has showcased in Mumbai its total range of solutions for the automobile industry, such as supply chain management and customer relationship management (CRM), aimed at reducing development cycles, production times and inventories. SAP has a range of ERP solutions for all manufacturing sectors built around the core product of R3.

According to SAP AG manager (regional industry group, automotive) Georg Gradl, after implementing its supply chain management solutions at units of major automotive manufacturers in India, the company was now targeting suppliers and distributors of these companies to improve efficiencies and integrate business processes.

Gradl said the Indian automotive industry was undergoing a metamorphosis and it would face stiff competition from superior Japanese, Korean and European manufacturers. "In such a scenario, selectivability andoverall efficiency will be the factors to count. Customers will seek make-to-order scenario in which supply chain management solutions can play a key role."

"Today, there are 20,000 different models of automotive in the world but customers demand more varied models. Delivering vehicles suited for each customer's needs by reducing cycle time and obsolency is critical. An effective supply chain management solution can only do this," Gradl said.

SAP automotive solutions are planned to enhance operational efficiency of the Indian auto industry. The systems, which integrate business infrastructure and extend automotive supply chain, would help streamline operations, improve efficiencies and enhance decision support, he said. Even a proper logistics would save a lot.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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