Customer logistic service in the automotive industry with the use of the SAP ERP system

Using the example of one of the biggest suppliers of automotive parts and sub-assemblies, the article presents the JIT (Just in Time) and JIS (Just in Sequence) deliveries based on the SAP system. JIS means that parts are pre-sorted into bins by the supplier, so that assembly workers can withdraw these parts in the right order just as defined by the production sequence. JIS eliminates the time needed for reloading the parts delivered from the warehouse to the customer's production line. This is one of the most advanced methods of production and deliveries which requires the most advanced customer logistic service. Both concepts, JIS and JIT, shorten delivery cycles and increase the reliance on well-planned and reliable logistics operations. In addition to reaching the customer's utmost satisfaction, the primary objective of the JIT and JIS methodology is to continually improve the supply chain in terms of costs, quality and timeliness of supplies. According to the data available, over 3,000 automotive companies worldwide rely on SAP software and each day 77,000 vehicles are manufactured by automotive companies that are SAP customers. ERP systems largely influence the quality and efficiency of logistic processes. They enable planning, coordination, control of logistic flows involved in the flow of materials, finance and information in the entire supply chain.

I. Introduction

The Ernst & Young (2013) European Automotive Survey, which covered 300 companies operating in Europe (15% of which are car manufacturers, and 85% suppliers of parts), shows that manufacturers of automobiles and sub-assemblies in Europe are optimistic about the future [1]. Due to ever increasing market demands and growing competition, what is of primary importance from the viewpoint of the industry now is a reduction in the costs of manufacturing, warehousing and transport, with parallel maintenance of efficiency of these processes [2]. Research shows that it is not possible without advanced Enterprise Resource Planning (ERP) management systems.