Building an SAP S/4HANA-Based Digital Core for High-Volume Automotive Manufacturing

The client's company is a shining example of innovation and excellence in the automotive industry, facilitated by a state-of-the-art SAP S/4HANA system integrated by LeverX.

Client

The client is a large company with over 10,000 employees. Specializing in the production and distribution of automotive spare parts, the company is known for its innovative approach to manufacturing processes.

Challenge

The client faced significant operational challenges driven by rapid production growth and increasing process complexity. Managing large production volumes across multiple assembly sites required better coordination, accuracy, and transparency.

Key challenges included:

• Fragmented IT landscape with disconnected systems that hindered process visibility
• Manual and Excel-based planning processes that were time-consuming, error-prone, and difficult to scale
• Paper-based reporting on the shop floor, leading to data duplication, delays, and inconsistent information
• Limited ability to optimize inventory levels in line with real production needs and tight deadlines
• High dependency on manual recalculations when production plans or material requirements change

These challenges restricted the company’s ability to respond quickly to operational changes, optimize inventory, and support high-volume production efficiently, creating the need for a unified, automated digital solution.

Solution

To address the client’s operational challenges and support large-scale, high-volume production, LeverX implemented a comprehensive SAP S/4HANA-based solution that unified manufacturing, supply chain, logistics, finance, sales, and marketing processes within a single digital landscape.

The project followed an adapted version of the Waterfall methodology, beginning with an in-depth requirements analysis. During this phase, the LeverX team immersed itself in the client’s operational environment to understand production workflows, planning logic, reporting practices, and decision-making processes.

Business process analysis and project foundation

Key business areas identified during the analysis included production planning, procurement, warehouse management, supply chain, finance, sales, and customer relationship management. LeverX consultants worked directly at the client’s production sites, conducting workshops and interviews with planners, engineers, operators, dispatchers, and managers.

Over a 15-day on-site assessment, the team analyzed end-to-end processes across multiple assembly locations. This was followed by six weeks of detailed As-Is documentation, which served as the foundation for designing and implementing the SAP S/4HANA solution.

Production planning and procurement optimization

To stabilize and automate production planning and component supply, LeverX implemented SAP PP/DS, SAP MM, complemented by SAP BPC. These solutions enabled effective planning from long-term demand forecasts down to day-to-day operational execution, supporting Just-in-Time (JIT) and Just-in-Sequence (JIS) production models.

As a result, production facilities received components and materials in the required quantities and at the right time, significantly reducing disruptions caused by material shortages or planning inaccuracies.

Digital integration and real-time data exchange

A key element of the solution was the elimination of manual, Excel-based, and paper-driven workflows. LeverX replaced these processes with automated, real-time SAP workflows that enabled fast and accurate adjustments to production plans and inventory levels.

To ensure seamless coordination between shop-floor operations and enterprise planning, LeverX integrated the existing GM GEPICS MES system with SAP S/4HANA. This integration enabled real-time data exchange between production execution and planning systems, improving transparency, sequencing accuracy, and responsiveness to operational changes.

Warehouse management and logistics transformation

To unify and optimize warehouse operations, LeverX implemented SAP EWM, integrating all warehouses into a single system. The solution included:

• An address-based storage system
• RF transactions integrated with handheld terminals
• Container tracking and warehouse balance control
• Enhanced container processing functionality
• Supplier label management to reduce labeling time and improve resource efficiency

SAP EWM significantly improved visibility and control over inbound, storage, and outbound logistics. The solution also minimized the time required to supply assembly lines, ensuring uninterrupted production and smoother warehouse operations.

Centralized master data management

LeverX implemented a centralized master data management approach for suppliers, customers, and materials. This eliminated outdated and duplicate records, ensured data consistency across departments, and improved overall data quality, enabling more accurate planning and decision-making.

End-to-end process automation

By integrating manufacturing, procurement, logistics, and distribution within SAP S/4HANA, LeverX enabled end-to-end process automation. The solution ensured precise vehicle launch sequencing, model-based production planning, and rapid generation of component requirements based on vehicle configuration, significantly reducing manual intervention and operational risks.

Financial transparency and analytics

Given the high volume of daily financial transactions, LeverX implemented SAP FICO to provide a transparent, reliable, and scalable financial accounting system. Automated bank statement processing reduced accounting workload, improved accounts receivable management, and ensured seamless bank integration.

The solution also enhanced cost-of-goods calculation accuracy and enabled regulated financial period closing through synchronized accounting and analytical data.

Sales and marketing enablement

To support sales growth and improve marketing effectiveness, LeverX implemented SAP S/4HANA Sales and SAP Marketing Cloud. These solutions enabled the client to analyze marketing performance, plan promotional budgets more effectively, and implement targeted local marketing strategies that contributed to increased sales and customer engagement.

Technology Stack

The solution is built on a robust SAP enterprise stack, ensuring scalability, reliability, and real-time process integration across production, logistics, finance, and commercial operations.

Core ERP platform: SAP S/4HANA

SAP S/4HANA serves as the digital core of the solution, supporting end-to-end business processes across production planning, procurement, warehouse management, finance, sales, and marketing. The platform enables real-time data processing, improved process transparency, and faster decision-making.

Key SAP S/4HANA modules:

• SAP Production Planning and Detailed Scheduling (SAP PP/DS)
• SAP Material Management (SAP MM)
• SAP Extended Warehouse Management (SAP EWM)
• SAP Finance (FI)
• SAP Controlling (CO)
• SAP S/4HANA Sales

Planning and consolidation: SAP Business Planning and Consolidation (SAP BPC)

SAP BPC is a dedicated planning and consolidation solution to complement SAP S/4HANA modules. The solution provided integrated financial and operational planning capabilities aligned with the client’s requirements.

Sales and marketing enablement: SAP Marketing Cloud

SAP Marketing Cloud supports marketing planning, campaign management, and performance analysis. The solution enables data-driven marketing decisions and improves alignment between sales activities and promotional strategies.

Manufacturing Execution System (MES) integration

The existing GM GEPICS MES system was integrated with SAP S/4HANA to enable seamless interaction between shop-floor operations and enterprise planning.

Integration technologies:

• SAP Process Integration / Process Orchestration (PI/PO)
• SAP-standard integration interfaces

This setup ensures secure, reliable, and near-real-time data exchange between production execution and planning systems.

Integration and extension platform: SAP Business Technology Platform (SAP BTP)

SAP BTP was used as the integration and extension layer to support system connectivity, process orchestration, and future scalability. The platform enables flexible integration between SAP S/4HANA, MES, and external systems, while supporting custom extensions as needed.

Database: SAP HANA

SAP HANA provides high-performance in-memory data processing, enabling real-time analytics, fast transaction processing, and instant visibility into production, inventory, and financial data.

Results

By implementing SAP S/4HANA, LeverX helped the client increase process transparency, streamline document flow, and significantly reduce manual operations across core business functions.

The client achieved the following measurable outcomes after go-live:

Reduced inventory holding time

Warehouse inventory days decreased by 3%, helping optimize working capital and reduce storage-related costs.

Reduced production cycle time 

Improved visibility and workflow optimization led to a 4% reduction in production cycle time, enabling faster adaptation to changing production needs.

Reduced profit losses from component shortages 

Profit losses linked to shortages decreased by 10%, supporting better continuity of production and fewer missed sales opportunities.

Reduced total production costs 

Total production costs decreased by 0.1–0.5%, strengthening overall profitability and competitiveness.

Improved on-time delivery 

On-time deliveries increased by 5% thanks to real-time visibility into inventory availability and production requirements, reducing delays and improving customer satisfaction.

Regulated financial period closing

By synchronizing data across systems, the company established a controlled and repeatable financial closing process, accelerating reporting and enabling faster decision-making.

Automated bank statement registration 

Automation of bank statement registration increased by 96%, reducing manual workload and improving the accuracy and timeliness of financial reporting.

Increased employee engagement 

Employee engagement increased by 10–20% due to a more user-friendly system experience and reduced routine manual work, allowing teams to focus on higher-value activities.