The Automotive Solution

Christina SchererVolkswagen Canada Inc.

Agenda

Business Model

Challenges

Systems OverviewBefore and After

Vehicle Manager

Rewards

Business Model

Cars are planned and ordered from the US and Canada

Production is scheduled centrally in Germany

Manufacturing, assembly in Germany, Mexico, Brazil

Shipping by sea and rail to dedicated ports in the US and Canada

Distribution to Dealers through 3rd party logistics providers

Business Process

INVENTORYINVENTORY

PURCHASINGPURCHASING

PRODUCTIONPRODUCTION

PRICINGPRICING

INVOICING &WHOLESALESINVOICING &

WHOLESALES COLLECTIONCOLLECTION

All ModelsAll Models

VEHICLEPROGRAMSVEHICLE

PROGRAMS

Challenges Before Implementation

Systems:

FI, CO, and AM on SAP R/3

Financial tracking of car inventory as a custom developed mainframe system

Audi/Volkswagen physical inventory tracking as a custom developed Client Server system

Systems before Implementation

Bank

DealerFactory Import

Vehicle Distribution

Inventory

Vehicle Finance

Purchase Pricing Collection

Distribution Tracking Transport Delivery

Corporate Customer

CorporateCustomerCorporate Finance

Financial Transactions, AccountingProfitability Analysis and Cost Accounting

Challenges Before Implementation

Business:

Lack of integration between financial view and inventory view of vehicle flow

Difficult integration with corporate accounting

Amount of effort needed to consolidate results between the systems and investigate differences

No timely information about vehicle status and financial flow, doesn’t allow transparent financial planning

Increasing number of sales resulted in increased data volumes, resulting in higher effort to minimize financial risk

Lack of system enhancement flexibility to support the increase of sales volumes

Project Scope

Deliver a North American Region Vehicle Finance solution that will increase integration, transparency, efficiency and actuality of data.

System of choice, SAP Automotive 3.0

• Link vehicle cost to vehicle movement

• Manage funds for vehicles purchased and sold, and manage Vehicle Pricing

• Improve General Ledger interface processing

• Fully integrate the vehicle financial process for the NAR

• Increase GL account visibility and improve NAR interface processing

• Provide system platform for future expansions

• Support Web-based business initiatives

• Create a process which is adaptable to future business requirements

Project Timeline

Business Blueprint

Realization

Final Preparation

Parallel USA/CAN

Go Live

Apr. – Aug.2002

Jan. - Mar.2001

Jul. - Sep.2001

Apr. - Jun.2001

Oct. - Dec.2001

Jan. - Mar.2002

Mexico

USA/CAN

Sept-Dec.2002

Jan 12003

Systems after Implementation

Bank

Dealer

Corporate Customer

CorporateCustomer

Factory Import

Vehicle Finance

Corporate Finance

InventoryPurchase Pricing Collection

Financial Transactions, AccountingProfitability Analysis and Cost Accounting

Vehicle Distribution

Distribution Tracking Transport Delivery

Vehicle Finance System

SAP Module FI

SAP Module MM SAP Module SD

PurchaseOrder

Goods Receipt

IncomingInvoice

GoodsMovement

SalesOrder

GoodsIssue

DealerInvoice

SAP Vehicle Management- Status Control -

UserInteraction

DataInterface

Group SAP SystemsGroup SAP Systems Legacy SystemsLegacy Systems

ALEALE

Vehicle Manager

Dealer Data Vehicle ConfigurationEnd Customer Data Vehicle HistoryVehicle Data

Vehicle Finance and Corporate Finance

SAPVehicle Finance

System4.6C

(MM/SD/FI/CO)

SAPCorporateFinance

4.6B(FI/CO/AM)

ALE

Automated Link Enabling• Operate two servers with different versions• Real-time transfer of Financial transactions and Master Databetween Servers

Rewards

Successful Go-Live in January 2003

Consolidation of business processes (Corporate finance and Vehicle Finance) into 1 SAP supported process

Standardization of processes in the NAR without losing national flexibility

Real time integration of Vehicle system into the Corporate Finance system allows timely management of financial resources

Reduction of manual consolidation and enhancement of data between separate system particularly at month end and year end

Visibility of different views (financial, inventory, pricing) of a vehicle from one central access point and with one underlying data source

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