Renewable Energy Is Powering The Future Of The Automobile Industry
October 7, 2020
By Julia Ponzini, SAP Customer Marketing
When you think of cars in the future, what comes to mind? Relaxing in the cockpit as your vehicle takes you for a trip on the town? Or perhaps roads becoming a thing of the past with the sky the limit?
Although the automobile industry may not yet be like The Jetsons with its flying cars, the future of driving electric vehicles is upon us.
One company leading the way in electric car manufacturing is Volkswagen Sachsen GmbH. Headquartered in Zwickau, Germany, Volkswagen Sachsen is a wholly-owned subsidiary of the VW Group. It operates production plants in Chemnitz and Dresden, employing more than 10,200 people across the three sites.
Devoted to meeting the company’s commitment to sell more than one million vehicles annually by 2025, Volkswagen Sachsen GmbH sought further insight into manufacturing profitability, optimizing efficiency, reducing manual workflows, and minimizing environmental impact.
Getting the Green Light for Green Energy
Consumer demand for higher environmental consciousness is leading to a rise in sustainable mobility. The VW Group wanted to deliver e-mobility for everyone while minimizing the eco-impact. To meet its TOGETHER-Strategy program, the VW Group knew it needed support.
Volkswagen Sachsen GmbH launched an 18-month project with partner IBM to identify and deploy the best technology options for the ‘TOGETHER—Strategy 2025 program. Part of the VW Group goal is to launch 75 purely battery-operated models by 2029. To support the company’s shift towards sustainable production, the two companies worked closely with SAP. A custom integration code was developed, enabling Volkswagen Sachsen GmbH to connect their core SAP S/4HANA solution with SAP S/4HANA Sourcing and Procurement.
How a New Technology Platform Set New Standards
Ronald Göllnitz, Lead Project Manager, Volkswagen Sachsen GmbH, said, “Electric mobility has to be affordable. With SAP S/4HANA, we have created a new technology platform that helps us set new standards at Volkswagen.”
With the help of IBM Services to implement standardized financial processes, Volkswagen Sachsen GmbH was able to lay the groundwork for a global template for the Volkswagen Passenger Cars brand.
VW Sachsen GmbH created a standardized finance system, integrating existing processes, leading to increased transparency and productivity while improving analytic capabilities. Based on SAP Best Practice templates and further work with IBM Services, the following was made possible:
Reducing the complexity of its data structures resulting in 30% fewer cost centers
Optimizing organizational processes with leaner approval processes, needing only 8 instead of 13 hierarchical levels
Reusing 80% of workflows for global rollout of the new ERP applications
As a result, innovations in this environment helped VW Sachsen GmbH realize its electric mobility mission. As for what the future holds regarding flying cars, someday soon, we may all be craning our necks while shielding our eyes and saying, “Look, up in the sky!”
To learn more about Volkswagen Sachsen GmbH’s journey on creating a cleaner tomorrow, check out their SAP Innovation Awards 2020 Pitch Deck