Iveco Drives Innovation Across Vehicle Management Processes with SAP

SAP today announced that Iveco, the industrial vehicles arm of the Fiat Group, is driving innovation across its vehicle ordering processes and accelerating its global revenue cycle with a unique vehicle management solution. Based on the SAP for Automotive industry solution set, Ivecos vehicle configuration portal enables importers and distributors worldwide to custom-order vehicles online, setting in motion an end-to-end process chain that has shortened Ivecos worldwide financial closing cycle to one week and reduced purchase-order errors by more than 50 percent.

With its January 2004 go-live of SAP software for 2,000 users, Iveco achieved the first milestone in its initiative to unify a global business network spanning 23 production sites, 250 dealers and more than 5,000 suppliers. Among the several hundred legacy applications slated to be replaced by SAP solutions, the company first zeroed in on its global dealer network and supply chain applications. The goal was to streamline and improve revenue cycle management on its sales of more than 150,000 commercial vehicles and 400,000 diesel engines each year. Key to enabling Ivecos integrated process flow is its new dealer portal, created with the SAP Vehicle Manager application from SAP for Automotive.

Our portal solution from SAP is truly a first in the automotive sector; it puts the vehicle at the center of our ordering processes, the customer in the drivers seat and our revenue cycle in the fast lane, said Mario Leone, CIO and senior vice president, Iveco. With the end-to-end SAP system, we have greatly improved the way we serve our global dealer network while achieving faster financial reporting and fewer purchase order errors. SAP for Automotive solutions are helping us reduce complexity across our global operations and will continue to be key enablers of business change and profitable growth for Iveco.

The new solution integrates all information and processes from the front-end to the back-office, so that each order Iveco receives is now a valid order for a buildable vehicle. When Iveco dealers access the new Web portal and vehicle configuration applications, they can personalize a vehicle that is fully supported and able to be built within Ivecos plant systems. The integrated solution also provides users across sales, production and financial departments with comprehensive visibility into the vehicle pipeline and helps reduce sales costs, optimize warehouse stock and improve delivery times.

To enable further enhancements in customer service, the company is building on its dealer portal by deploying applications from mySAP Customer Relationship Management including the SAP Interaction Center and SAP Warranty Management applications.

Iveco clearly demonstrates the strategic business value companies gain with SAPs integrated automotive solutions, said Claus Heinrich, member of the executive board, SAP AG. SAP for Automotive provides the scope of functionality automotive companies need to unify widespread business networks and efficiently execute end-to-end business processes.

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