ElringKlinger AG, a leading global automotive supplier, has partnered with SAP to migrate its corporate IT systems to the cloud, utilizing SAP cloud-based ERP solutions to bolster its competitive edge in the dynamic automotive industry.
ElringKlinger’s extensive product portfolio features innovative solutions for a range of vehicles, including those with electric motors, hybrid technology, and combustion engines. The company’s offerings cover various vehicle components, from the drivetrain to the underbody, chassis, braking system, interior, and body. Known for its early adoption of electromobility, ElringKlinger also specializes in pioneering battery and fuel cell technology and related components like plastic housings and metal stampings. With a workforce of approximately 9,500 employees across over 40 locations worldwide, ElringKlinger is a significant player in the automotive sector.
As part of its collaboration with SAP, ElringKlinger will progressively introduce new locations and cloud applications throughout the year. To ensure a seamless transition, the existing SAP infrastructure will operate alongside the new SAP S/4HANA Cloud system for several years. Additionally, this dual-system approach aims to mitigate business risks in volatile markets, which is essential given the current geopolitical climate and the fragility of supply chains. (InsideSAP often references articles from websites in other languages to bring you as much information as possible.)
ElringKlinger’s CEO, Thomas Jessulat, emphasizes that the automotive industry is experiencing profound changes, with a significant increase in demand for new drive technologies. He also highlights that the volatile environment in which ElringKlinger operates necessitates robust strategies like SHAPE30, their transformation strategy. The partnership with SAP is a critical component of their digitalization efforts, significantly accelerating the shift to cloud technology, which is pivotal for the successful execution of their strategy.
Strategic Implementation of SAP Cloud-Based ERP Systems
Moreover, ElringKlinger’s shift to SAP’s cloud-based ERP aims to modernize, unify, and standardize its operations. This fully integrated ERP system provides standard automotive processes that are out-of-the-box, reduces operating costs, enhances business transparency, and increases agility to adapt to swiftly changing market conditions. The package also includes an extended warehouse management system to streamline inventory management. SAP will host the data and processes, providing a secure and efficient infrastructure.
Meanwhile, Stephan Gemm, CIO of ElringKlinger, notes that SAP’s strategic focus on artificial intelligence and supply chain management allows ElringKlinger to develop its IT landscape flexibly. This approach further improves operational efficiency and reduces internal IT administration costs, making their operations more resilient and adaptable.
Last year, ElringKlinger selected the SAP Business Technology Platform (SAP BTP) for its cloud development and integration environment. This platform enables custom innovations without altering the core SAP S/4HANA system, ensuring that customers remain “upgradeable” and can continuously benefit from SAP’s ongoing system enhancements, including AI integrations.
Alexander Kläger, MEE Regional President SAP SE, underscores the significance of the RISE with SAP program in ElringKlinger’s digital transformation strategy. This initiative supports customers in transitioning to the cloud securely and swiftly. Kläger points out that this collaboration exemplifies how the European automotive industry can remain globally competitive and future-proof its business operations.
ElringKlinger’s strategic partnership with SAP and the adoption of SAP’s cloud-based ERP solutions mark a pivotal step in the company’s ongoing transformation. By leveraging advanced cloud technologies, ElringKlinger aims to enhance its global competitiveness, streamline operations, and remain at the forefront of innovation in the rapidly evolving automotive industry.
