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Simplifying Supply Chain Interaction

Rafael Sánchez - SAP México
Director General
Home > Automotive > View from the Top

Simplifying Supply Chain Interaction

José Carlos Rivero Celorio - SAP Mexico
Industry Value Director
José Carlos Rivero Celorio


Tue, 09/01/2015 - 17:18

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Q: Which of SAP’s solutions have been the most popular in the Mexican market?

RS: Mexico has become an extremely relevant market for SAP; the company started out here with ERP solutions and then moved on to core applications. One of our platforms is Ariba, which allows companies to manage their procurement in real time through the connection of business-to-business processes. Another of our solutions is SuccessFactors, which is focused on managing all human resources processes, from recruitment to training. Over the last two years, SAP has spent more than US$20 billion acquiring new cloud companies and integrating them into its portfolio. We are also investing a significant part of our resources into R&D operations, and we recently allocated more than US$7 billion to improve our solutions. Our Mexican subsidiaries have close to 900 employees offering sales, pre-sales, and after-sales services to our base of more than 5,000 clients. We launched our new generation of solutions in 2015, with Mexico becoming the first country to stock our S/4 product line on February 4th.

JCR: SAP also provides a platform that enables OEMs to evaluate their entire pool of suppliers to decide which ones offer the best services at the most convenient prices. Similarly, it enables suppliers to analyze each new requirement from these companies. On the demand side, we have our Supplier Network Collaboration software, which allows OEMs to send a constant stream of information to suppliers, preparing them for possible adaptations of their production and manufacturing capabilities.

Q: How have you adapted your solutions to the complexities of Mexican infrastructure, particularly for logistics and aftermarket companies?

JCR: SAP has invested substantial resources into its logistics solutions, developing geo-devices, geolocation, and transportation optimization. The company partnered with several major transport companies to improve the way we optimize routes and shipments, and one of our warehousing solutions was designed alongside a prestigious heavy vehicle company. We offer solutions for all levels of the automotive supply chain, including micro companies, SMEs, and global companies. Business ONE has been specifically designed for small companies in this sector, and has been developed to allow even a player with a single computer to benefit from our services.

RS: Most of the time, SAP is seen as a company for large ERPs and global customers, but we have made significant investments to cover the entire industrial network, and now our products for SMEs are completely aligned with our solutions for large businesses. Furthermore, Mexico is the third biggest market for SAP in terms of Business ONE licenses.

Q: How is SAP helping its clients develop more flexible and lean manufacturing operations?

JCR: Our software is completely oriented toward lean manufacturing processes, Kanban systems, and Six Sigma operations, which means that it can be implemented to help our clients as soon as it is acquired. It is true that our software can help our clients immediately, but in this instance it would only work to 80-90% of its capabilities.

RS: During 2015, we have been focused on launching our S/4 products. We have moved several of our solutions to the cloud and have started to work on internet-ofthings solutions. This last area is going to be huge in the automotive segment, given that it allows information to be obtained from every component in the vehicle. There is going to be an enormous amount of information to manage, and clients will need a system capable of processing all that data and make it relevant to their operations.

Q: What benefits have SAP’s new S/4 products brought to your clients in the automotive industry?

JCR: SAP has simplified its software for transactions, research, and consultation in every area of the business, including finance, logistics, and management. Furthermore, the system runs in real time and it is completely integrated. The three main focal points of our strategy are complete systems integration, real time data management through the HANA platform, and a tailored design that allows software to run on business networks. This strategy facilitates optimization within companies, enabling them to provide a faster and more effective service to their customers.

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