How to Deal with 12 Complex Business Scenarios in the Automotive and Other Aftermarkets

  • by Sandeep Kumar, Lead Consultant, Infosys
  • June 19, 2013
Based on numerous Fortune 500 implementations, this article details the SAP mappings and settings to be made in various scenarios in the aftermarket business. It shows how to meet the challenges using standard SAP systems, avoiding a lot of custom development. Although it is written with the automotive aftermarket in mind, it can benefit other manufacturing industries that have similar scenarios.
Key Concept

In a big manufacturing company and especially in the automotive aftermarket business, it is common to face business complexities as most of the parts are externally procured from numerous suppliers and are managed in a third-party warehouse. Subcontractors and packagers can also be involved. The aftermarket business is also known as the after sales service parts market.

The aftermarket business is growing all over the world. Manufacturing every component, especially of an automotive vehicle, is not economically viable for in-house production. This business primarily depends on outsourcing work to many vendors who can supply the components at a lower cost because of bulk production. Even though the following 12 scenarios were designed to be specific to the automotive aftermarket business, other manufacturing business can benefit from them:

 

  • The supplier ships goods to a company-owned warehouse.
  • The supplier ships goods to a third-party warehouse.
  • The supplier ships goods to a subcontractor and the subcontractor ships them to a company warehouse.
  • The supplier ships goods to a subcontractor and the subcontractor ships them to a third-party warehouse. 
  • The supplier ships goods to a packager for packaging before they are received in a company or third-party warehouse.
  • The supplier ships goods to a subcontractor and the subcontractor ships them to the packager before they are received in a third-party warehouse.
  • Goods are shipped directly from the supplier to the customer.
  • Goods are shipped from a third-party warehouse to the customer.
  • Goods are supplied by the company’s own manufacturing facility.
  • Same goods are imported from different countries.
  • Shipping consignment stock of a material to a customer from a company warehouse.
  • Shipping consignment stock of a material to a customer from a third-party warehouse.

Sandeep Kumar

Sandeep Kumar is a lead consultant with Infosys with more than 17 years of experience working in the automotive, aeronautical, and hi-tech manufacturing industries. He specializes in implementing SAP in the manufacturing industry domain. He holds a master's degree in financial management and a bachelor’s degree in production and industrial engineering.

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