Mercedes-Benz modernising factory IT systems
The upgrade process in question involves the consolidation of production and logistics systems. According to some sources, the move is to keep the company competitive within the car market. It is also an essential upgrade for the type of company that Mercedes-Benz actually is, a luxury car manufacturer.
Their current production and logistics system is due for a major upgrade, according to some sources. It has not kept up with the times and has shown strenuous signs of aging.
Klaus Peter Schmitt – Needs a change from the 1980’s
Klaus Peter Schmitt, the IT manager at the Diagnostic Competence Center, Flasher and Control Technology for Mercedes-Benz Cars, stated that the systems were built so far back that it is becoming outdated. His exact words were “Many of our logistics systems were established in the 1980s, so the systems are slowly declining technologically,”
Decided upon four years ago
The upgrade has been touted by Mercedes-Benz IT experts for four years now. What will the upgrade involve? A brand new SAP based system will be implemented within to improve the system functionality and efficiency. The new SAP system will bring together the logistics and production process brining about more flexibility and a more clearly concise process.
It’s a move which is also being considered by other car manufacturers, as they are also still utilising older systems.
The new proposed new SAP system will be based upon modules. It will allow the management of materials and warehouse along with production planning and sales distribution. That will certainly bring about a clearer order to the gathering of car materials, to the production of the cars and then the sales in a very intelligent way.
It may come across as strange that Mercedes-Benz have been using an older system for production and materials distribution. An upgrade of their system is definitely needed, with it expected to increase the company’s profits by quite some distance, even if the cost of the upgrade will be extremely high at first.
It won’t happen soon however. The plan is to implement the system across the world by 2020, which is quite some time off. An upgrade like this doesn’t happen overnight.