Analyzing the Daimler Sap System

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Title: Analyzing the Daimler SAP system

Contents
1.0 Introduction about the cooperation …………………...3 2.0 Why Choose SAP………………………………………..4 3.0 Investments & Challenges to go for SAP way………....5 4.0 Problems during SAP implementation………………...6 5.0 SAP implementation.........................................................7 6.0 The Benefits by Using the SAP........................................8 7.0 Recommendation for Future Improvement...................9 7.1 The Benefits by Using the SAP

7.2 Introducing the e-logistics
7.3 The Decision phase of the SAP
8.0 Conclusion………………………………………………12 9.0 Reference ……………………………………………….13

1.0 Introduction about the cooperation
The Daimler AG is a Germany automotive manufacturing company which belongs to the world 100 fortune company.

Daimler AG focuses on higher-priced cars — it is the world's No. 2 luxury carmaker. The total revenue for the cooperation is 151.6 billion and the total employees are around 271 thousand.

Daimler AG (formerly DaimlerChrysler) was founded in 1883 and it is a German manufacturer of automobiles, motor vehicles, and engines, which dates back more than a century.

Daimler AG has 14 brands which include Mercedes-Benz, smart, Mercedes-AMG, Maybach, Freightliner, Mitsubishi Fuso, Western Star, Detroit Diesel, Setra, Orion, and Thomas Built Buses. In addition, Daimler Financial Services is active in the fields of financing, leasing, insurance, and fleet management. The company distributes its products and services in almost every country of the world. With production locations on five continents and with some 7,300 sales outlets worldwide, the company is never far from its customers. Daimler sold 2.1 million vehicles in 2008.

2.0 Why Choose SAP
The Daimler AG is a giant cooperation which has nearly 500 acres of facilities and warehouses in its main plant. As the result, countless parts are moved from warehouses to facilities where they are processed, resulting a constant shift in inventory levels.

Before Daimler AG introduces the SAP RFID (radio frequency identification) technology, it uses the manual kanban process to control the inventory levels. And it has proven to be effective over many years. But this method really makes it difficult for the production and logistics to determine the current inventory levels.

Today, the automotive industry is undergoing sweeping changes, in this competitive environment, the cooperation needs to react faster, more flexible and specifically to the customer demands. And in order to achieve these, to know the current inventory levels are a key factor to accomplish it. And all these pressures make the Daimler AG tries to introduce the SAP system.

With the help of the SAP system, they are able to post the movement of different materials in a automate mode and once the inventory levels falls below the required level, the SAP system will inform the supplier and order the replenishments at the first sense.

The SAP services organization also customize the software which is best suitable for the cooperation to run well, and they are doing the pilot project to ensure that the specific SAP can adapt to the RFID technology in the Daimler AG. Another reason that the Daimler AG applies the SAP is that they are scalable, future-proof standard software, because of the target support of SAP system, every cooperation can believe that the SAP is a long term software and it really provide the functions for the need of the cooperation.

In addition, the SAP has the ability to help Daimler AG to map different auto-ID-based business process and also the high potential for integration of the SAP system.

3.0 Investments & Challenges to go for SAP way
Because of the Daimler AG was reluctant to present more details on the cost of introducing the SAP RFID technology so I can only do an estimation based on the information I found. The estimated cost for a...
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