Hindawi

Wireless Communications and Mobile Computing

Volume 2023, Article ID 9792161, 1 page
https://doi.org/10.1155/2023/9792161

Retraction
Retracted: Supply Chain Management System for Automobile
Manufacturing Enterprises Based on SAP

Wireless Communications and Mobile Computing

Received 25 July 2023; Accepted 25 July 2023; Published 26 July 2023

Copyright © 2023 Wireless Communications and Mobile Computing. This is an open access article distributed under the Creative
Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the
original work is properly cited.

This article has been retracted by Hindawi following an inves- References

tigation undertaken by the publisher [1]. This investigation has
uncovered evidence of one or more of the following indicators [1] P. Lin, M. Shu, B. Hsu, C. Hu, and J. Huang, “Supply Chain
Management System for Automobile Manufacturing Enterprises
of systematic manipulation of the publication process:
Based on SAP,” Wireless Communications and Mobile Computing,
vol. 2022, Article ID 5901633, 10 pages, 2022.
(1) Discrepancies in scope
(2) Discrepancies in the description of the research
reported
(3) Discrepancies between the availability of data and the
research described
(4) Inappropriate citations
(5) Incoherent, meaningless and/or irrelevant content
included in the article
(6) Peer-review manipulation

The presence of these indicators undermines our confi-

dence in the integrity of the article’s content and we cannot,
therefore, vouch for its reliability. Please note that this notice is
intended solely to alert readers that the content of this article is
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aware of or involved in the systematic manipulation of the
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Wiley and Hindawi regrets that the usual quality checks did
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additional measures in place to safeguard research integrity.
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Hindawi
Wireless Communications and Mobile Computing
Volume 2022, Article ID 5901633, 10 pages
https://doi.org/10.1155/2022/5901633

Research Article
Supply Chain Management System for Automobile
Manufacturing Enterprises Based on SAP

E D
Pao-Ching Lin,1 Ming-Hung Shu ,2,3 Bi-Min Hsu,4 Chien-Ming Hu ,2
and Jui-Chan Huang 5
1
2

3
4
Chizhou University, Anhui 247000, China

C T
Department of Industrial Engineering and Management, National Kaohsiung University of Science and Technology,
Kaohsiung City 80778, Taiwan
Department of Healthcare Administration and Medical Informatics, Kaohsiung Medical University, Kaohsiung City 80708, Taiwan
Department of Industrial Engineering and Management, Cheng Shiu University, Kaohsiung City 83347, Taiwan

A
5
Yango University, Fuzhou, 350015 Fujian, China

Correspondence should be addressed to Chien-Ming Hu; [email protected]

Received 7 January 2022; Revised 22 February 2022; Accepted 7 March 2022; Published 18 March 2022

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Academic Editor: Shalli Rani

Copyright © 2022 Pao-Ching Lin et al. This is an open access article distributed under the Creative Commons Attribution License,
which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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The heavy-duty truck industry has always been regarded as an “economic vane,” and as the carrier of production materials, its
degree of cold and heat can better reflect the quality of the macroeconomic environment. The SAP system is currently the ERP
software with the largest functions and the most sales and has been widely used by large domestic and foreign manufacturing
enterprises. Because of its specific development for enterprises, it is also the most expensive ERP software in the world. This
research integrates the existing information resources, takes SAP (system applications and products in data processing) system

E
as the enterprise’s information platform, unifies the information platform into SAP system by integrating the existing
information resources (financial system, logistics system, cost control system, production control system, etc.), avoids the
information island phenomenon as far as possible, and finally realizes the integrated and unified enterprise information
management, which is convenient for the rapid traceability of historical data, providing the best decision analysis method for
managers. It is possible to eliminate all non-value-added operations in the value chain, find out the point of cost reduction and

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efficiency increase, comprehensively optimize the production value chain, improve production efficiency, and finally achieve
the purpose of this book. The project implementation of automobile company adopts independent minicomputer system (HP
server), with SAPR/3 system as the core and C/S (customer/service) architecture, so as to gradually expand the system function
in the future. From the comparison before and after the launch of the SAP project, the above two indicators have increased by
1.5 times, the order fulfillment rate has increased from 30% to 45%, and the timely delivery rate has increased from 60% to
90%. Effective cost control can reduce costs, produce products with larger output and better quality at the same cost, and
enable enterprises to maintain an advantage in the competition; effective cost control can also enable enterprises to develop a
variety of configurations at the same cost. Products meet the individual needs of customers. The design of this article makes
the company’s supply, production planning, logistics, and demand synchronized and integrated.

1. Introduction and analyze new solutions and existing cost accounting

methods. The average interest rate of automobile
Based on the solution, implementation model and elements manufacturing industry is reduced. In order to make the
of the SAP system activity-based costing method, as well as enterprise have enough competitiveness and healthy long-
the implementation method of each element in the module, term development, it is more important to improve the
formulate the implementation standard and standard deter- inventory management level and reduce the enterprise cost.
mination method of each element in the module and find Many production-oriented enterprises are faced with the
2 Wireless Communications and Mobile Computing

common problems, such as production shortage and waiting research has attracted more and more attention [5], Gold
for materials, excessive inventory reserve, low inventory mentioned that the endorsement of the point of view may
turnover rate, and serious sluggish phenomenon. Inventory dissolve the firm pursuit of profit and other economic per-

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proportion is high, there are many kinds, and the manage- formance goals in order to recall the real problem. Although
ment is difficult, so the research on inventory management he discussed how far the acknowledged theoretical point of
of automobile manufacturing enterprises has extensive refer- view has taken root in the European institutionalized corpo-
ence significance [1]. Financial general ledger (manually rate social relations tradition, it cannot be regarded as a
processed business accounting vouchers, which can be que- rediscovery of the true European manufacturing business

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ried through subject details), detailed data (supply chain [6]. With the increasing awareness of environmental protec-
module picking details, income details, etc.), and cost drivers tion in countries around the world, the auto industry is
are calculated through statistical indicators under the bound to face new rectifications and challenges. For auto
activity-based costing method and other data. companies, how to effectively control costs during their

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This study selects the successful case of SAP manage- operations is an important issue that cannot be ignored.
ment system implemented by a medium-sized car manufac- How to scientifically select suppliers as strategic partners
turer, an automobile company, to analyze its successful of enterprises, strengthen information sharing and informa-
experience, hoping to inspire and help similar enterprises. tion exchange capabilities between enterprises and suppliers,
Relatively speaking, the level of manufacturing industry in and achieve seamless connection of supply chain systems

C
developed countries and regions is higher than that in devel- has gradually become a new demand for enterprise procure-
oping countries. According to the actual situation of auto- ment management. This study mainly discusses the design
mobile manufacturing plants, the existing logistics and implementation of supply chain management system
distribution system is integrated, and a set of more suitable for automobile manufacturing enterprises based on SAP.
overall solution for automobile production control and This research integrates the existing information resources,

A
logistics distribution system is formulated, which lays a good takes SAP system as the enterprise’s information platform,
foundation for improving the level of workshop control and unifies the information platform into SAP system by inte-
logistics management [2]. This research puts forward the grating the existing information resources (financial system,
safeguard measures for automobiles to implement the stan- logistics system, cost control system, production control sys-
dard activity-based costing method from four aspects: enter- tem, etc.), avoids the information island phenomenon as far

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prise organization, activity-based costing system, personnel as possible, and finally realizes the integrated and unified
management and training, and implementation process. enterprise information management, which is convenient
With the substantial improvement of production tech- for the rapid traceability of historical data, providing the best
nology and management level, the automobile market and decision analysis method for managers. The project imple-

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consumption environment have been greatly improved, her- mentation of automobile company adopts independent
alding the arrival of China’s automobile consumption era. minicomputer system (HP server), with SAPR/3 system as
Croxton et al. provided the strategy and operation descrip- the core and C/S (customer/service) architecture, so as to
tion of each of the eight supply chain processes determined. gradually expand the system function in the future. Accord-
Although he provides a series of opportunities for ing to the idea of ERP (Enterprise Resource Planning) man-

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researchers to further develop the field, the research process agement system and combined with the actual situation of
lacks data [3]. The main purpose of Samaranayake is to doc- the enterprise, the functions of the system include ware-
ument the research related to the development of the con- house area management, material basic information man-
ceptual framework of the supply chain. The framework he agement, inventory operation management, inventory
operation management, and statistical query management.

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proposed is based on a unified structured technology, which
combines the bill of materials, warehouse list, project net- The process of material information input can transfer
work, and operation routes in the manufacturing and distri- material master data information with SAP system through
bution network into one structure. He described the blockchain technology. This study is helpful to provide guid-
framework and illustrated digital examples in the ance for the long-term development of enterprises. From the
manufacturing and distribution environment. Each network perspective of sustainable supply chain partnership, the
in the supply chain in his research provides integrated determination principles of sustainable supply chain part-
methods for planning and executing many components ners and the main factors affecting partner selection can be
and can provide visibility, flexibility, and maintainability analyzed, and the evaluation index system of sustainable
but is not certain to further improve the supply chain envi- supply chain partner selection is established accordingly.
ronment [4]. Wu believes that as the traditional supply chain
becomes more and more intelligent, there is an unprece- 2. Supply Chain Management of Automobile
dented opportunity. He researches and explores the status Manufacturing Enterprises
quo and remaining issues of intelligent supply chain man-
agement. In addition, five key research topics were formu- 2.1. SAP. SAP (system applications and products in data
lated and studied. According to the review questions processing, data processing systems, applications, and prod-
defined in the research, he reviews, classifies, and analyzes ucts) is the leader among ERP software vendors. SAPR/3
the research in the above-mentioned subject areas. Although system (SAP’s flagship product) is a standard enterprise
the topic of convergence of atoms and numbers in his ERP application system product. Its main function modules
Wireless Communications and Mobile Computing 3

include SD (sales and distribution), MM (material manage- occurring at different stages in the supply chain process, differ-
ment), PP (production planning), PM (factory mainte- ent forms of financing models can be obtained [16, 17].
nance), HR (human resources), and FICO (finance and
Y

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cost) [7]. The types of production operations supported by N
SAP ERP are make-to-order, batch production (mass pro- F i ðX Þ = e λ X ann : ð5Þ
duction), contract production, discrete-type production n=1

(discrete type), make-to-stock (production by inventory),

and so on. Its due industries include automotive, electronics, F is the number of products [18].

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steel, chemical, and electrical manufacturing. The various N
functional modules of SAPR/3 have good solutions in many P = λi + 〠 Bn F: ð6Þ
aspects of enterprise management. The SAPR/3 module is n=1
structured and can meet the unique needs of enterprise data

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processing. It is a comprehensive and standard ERP software Among them,
product [8]. The SAP system is shown in Figure 1. In the B/S
mode, the user requests access to many servers distributed F t = F i,t+1 − F i,t ,
on the network through the browser, the browser’s request ð7Þ
is processed by the server, and the processing result and cor- X i − X t+1 :

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responding information are returned to the browser; other
data processing and requests are all done by web server. Determine parameter a by regression identification or
In the manufacturing resource system, whether in space or DEA method, and set the macroscopic effect function of the
time, the force driving the movement of manufacturing q-level system [19]:
resources should be consistent with the gradient direction of ðT

A
manufacturing resource potential [9]. Therefore, the potential
H q ðX, t Þ = e−rt ½A1 pE + aA2 pE + A3 p0 Š Fdt + Xt: ð8Þ
energy of manufacturing resources can be expressed as 0

dM = f ðdv, dp, dHÞ: ð1Þ Among them, r is the bank interest rate, which mainly
considers the time value of resource allocation [20]. Then,

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Among them, dM is the potential energy of manufacturing
resources, and dH is the change of manufacturing resource " #F
Fi
potential [10]. According to system resource optimization A= QN : ð9Þ
configuration requirements, let e λ ,t n=1 P/Pi α

T
n
Defined by the resource structure [21]
p ðT Þ = 〠 p i M i ,
i=1 ð2Þ
Y Y H
−rt
F 1 = e ½a1 F s + a2 F E + a3 F 0 Š: = 1 + : ð10Þ
Y i Y m Hm

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Among them, F 1 is the value of manufacturing asset F, Y is the resource allocation structure [22].
which is [11, 12]
!
1 X N N
Si N
P
M QE = 〠A+ 〠 +A〠 +K : ð11Þ

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Y
F = λ1 + 〠 an : ð3Þ ∑1n=1 an X m n=1 n=1 S n=1 Pi
m=t Ym
Suppose K is the unit at i time, then [23, 24]
The optimal combination model of production unit
resources is established [13]. R1
ΔR = W t + ΔN t + Dt = W t + ΔR + Dt : ð12Þ
Y
N R
λ
H ðX Þ = e X ann ,
n=1 3. Experiment of Supply Chain Management
ð4Þ
N System for Automobile
F X
= φi + 〠 A n : Manufacturing Enterprises
Fi n=1 Xi
3.1. System Design Scheme. Integrate the existing informa-
2.2. Supply Chain. Sustainable supply chain management has tion resources, and use the SAP system as the enterprise
developed into a unique research field at an exponential rate, information platform. By integrating the existing informa-
but its progress in sustainability has been quite slow, and it tion resources (financial system, logistics system, cost con-
has guided companies to integrate sustainability into their trol system, etc.), try to avoid the phenomenon of
operations and supply chains [14]. The theoretical basis for information islands, and finally realize integrated and uni-
coherence is still missing [15]. According to the funding gaps fied enterprise information management, which facilitates
4 Wireless Communications and Mobile Computing

D
One-tier Two-tier ree-tier
configuration configuration configuration

Presentation

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Presentation processes

Application

Application processes

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Database

Database, application, Database, application, Database, application

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presentation processes presentation processes

Figure 1: SAP system (http://alturl.com/x8bn6).

the rapid system for automobiles and determines to imple- vices for the time being. The main function of the

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ment the five modules of FI, CO, PP, MM, and SD first. sales system is to sell the products of the
The following departments are mainly involved in the manufacturing company to the catalog company
implementation process: and to distribute the catalog. The whole vehicle pur-
chased by the company is sold to the sales company
(1) Financial system: finance department: manage the

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finance and cost control of the automobile company (5) Other departments

(2) Production system ① Technical department: master data management,

including material master data, BOM, work center, and pro-
① Production department: responsible for coordinating cess route

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the sales plan of the sales company, formulating the produc- ② Operation management office: information system,
tion plan of the stamping branch, welding branch, painting performance appraisal, and comprehensive management
branch, and assembly branch of the automobile company, ③ Quality department: supplier quality management
and making statistics on the implementation of the produc-

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tion plan
② Purchasing and supply department: responsible for 3.2. System Architecture Design. The project implementation
the procurement business and managing the suppliers of a of the automobile company adopts an independent minicom-
certain automobile company puter system (HP server and SAPR/3 system as the core),
③ Logistics department: responsible for the manage- adopts C/S (customer/service) architecture, and gradually
expands system functions in the future (B/S structure). Some

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ment of warehouse operations and logistics distribution of
each branch of the notable advantages of the company are simple optimiza-
④ Manufacturing plant (final assembly branch, painting tion and faster and more convenient system upgrades; no mat-
branch, welding branch, stamping branch, online library ter how many clients need to be upgraded, you only need to
within each production plant, and work-in-process library upload the required plugins online; the information is fully
between each production plant) shared and transparent, not only the inventory information
between the various departments of the enterprise sharing,
(3) Procurement system and suppliers can also see all shipping information, avoiding
a lot of disputes caused by missing information; network
① Purchasing and supply department: supplier manage- requirements are reduced, saving internal hardware require-
ment and development, procurement contract maintenance, ments of the enterprise, you can directly query the required
and procurement business data on the browser, and you do not need to store a lot of data
② Logistics department: responsible for managing ware- yourself. From a comprehensive analysis point of view, the use
house operations and logistics distribution of each branch of the B/S structure is more able to meet the needs of enter-
prise operation and management. Here, the B/S structure
(4) Sales system: the sales company of the automobile needs to be enabled, and the network topology structure is
company is a sales department dedicated to final required to realize the connection of the software and hard-
consumers. However, in this project, the sales com- ware structure of the entire system. The network topology of
pany does not implement sales and distribution ser- the system is shown in Figure 2.
Wireless Communications and Mobile Computing 5

customer’s KMS Kanban pull system that are not fully used,
a simple and easy-to-operate inventory management system
is designed on the basis of these three systems. It can realize

D
Data server Application server WEB server basic functions such as management of enterprise internal
External supplier
inventory, customer receipt and reconciliation management,
Switch and supplier delivery reconciliation management, which
brings opportunities for the small-scale A company to be
Router Firewall quickly put into use. The functions of each module of the

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information system are introduced as follows:

Logistics Finance Purchasing Quality Other (1) System management module

department department department department department

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(i) Modify personal information
Figure 2: The network topology of the system.
(ii) Allocate system usage authority of each func-
tional department. Planner functions: can oper-
Purchasing and supply department: supplier manage- ate each module, maintain the main basic data,

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ment and development, procurement contract maintenance, assign management authority, inventory man-
procurement business. agement, inventory query statistics; information
Logistics department: responsible for managing ware- officer: inventory document entry, order and
house operations and logistics distribution of each branch. transfer of goods, plan outbound warehousing
Technology department: master data management, document entry, inventory query

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including material master data, BOM, work center, and pro-
(2) Basic data maintenance module
cess route. Operation management office: information system,
performance appraisal, and comprehensive management. (i) Material information input: including material
Quality department: supplier quality management. name, material number, project name, part num-
According to the idea of ERP management system, com- ber, supplier name, unit packaging quantity,

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bined with the actual situation of the enterprise, the system safety stock quantity, and other information
includes the following functions: input, delete, modify, query, and exchange mate-
rial master with SAP system data information
(1) Warehouse area management: classification and

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coding management of the warehouse area (ii) Location information input: location number,
location category, material name, and material
(2) Material basic information management: material
classification
ABC classification attribute management; provide
material classification management. There are various (iii) Customer information query: customer infor-

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measurement units of materials, and the conversion mation and shipping orders are directly
between measurement units can be realized; the maxi- obtained by the KMS Kanban pull system
mum and minimum inventory is set to realize the
alarm of missing parts and overflow of materials; (iv) Supplier information query: supplier informa-
alarm: automatic generation of demand order function tion is obtained from the E-supply system

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(3) Inventory business operation management: inven- (v) Beginning inventory entry: the initial part
tory management multilevel operation authority to inventory quantity, set the maximum inventory
ensure data security; inventory material status query, and minimum inventory
understand the current available material quantity, (3) Inventory counting module
and the status of broken scrap, occupancy, and
order; automatically generate operation vouchers (i) Preparation of inventory plan: material name,
and query them as inventory operation records; material category, and inventory specification
basis: query previous inventory operation records
(ii) Inventory list entry: part number, part name,
(4) Inventory job management: inventory plan prepara- part category, and location number
tion and direct printing of inventory table; support
cycle inventory method and freeze inventory method (iii) Inventory confirmation: initial quantity, reex-
amination quantity, draw quantity, and
(5) Statistical query management: provide multiple confirmation
combinations of query, inventory status, supplier
delivery status, customer sales quantity query, etc. (iv) Inventory query: part name, part number,
inventory quantity, and location number
3.3. System Function Module Design. According to the com-
pany’s existing SAP system, the E-supply system, and the (4) Inventory business module
6 Wireless Communications and Mobile Computing

(i) Finished product delivery: printing of finished implementation of the latter batch of schemes.
product delivery note, printing of stocking list, Moreover, every time the system function is
delivery confirmation expanded, the whole system scheme must be reinte-

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grated test to ensure the integration of the system,
(ii) Finished and semifinished product warehous- and the users must also gather for retraining. These
ing: finished product warehousing and semifin- repetitive tasks will consume time. The overall
ished product warehousing, finished product implementation strategy is adopted, all processes
material number, quantity are defined in the same time period, all system solu-

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(iii) Order entry: part number, part name, date, and tions are designed, implemented, and tested in the
quantity same time period, and all user training and permis-
sion definitions are also completed in the same time
(iv) Disposal of scrap list: part number and location period, thereby avoiding step-by-step implementa-

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(v) Planned outbound and outbound order: mate- tion causes rework problems
rial number, material name, applicant, and date (2) Using a step-by-step implementation strategy, the
project implementation team will face the dual work
(5) Inventory query statistics module
pressure of support and implementation within the

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(i) Inventory status query: query which location same time period. It will not only provide support
the part is in, which supplier it belongs to, and for the system that has been put into use but also
the inventory quantity carry out the design and development of new func-
tions. On the contrary, the overall implementation
(ii) Inventory operation query: what operations strategy clearly defines the main tasks and key sub-
have been performed on the part, as well as missions of each stage. The project team members

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the operator and date of operation only need to focus on the most important tasks in
this stage within the same time period, and the qual-
(iii) Material classification query: the category of the
ity of work can be fully guaranteed
material, whether it is a raw material
(3) Adopting a step-by-step implementation strategy

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(iv) Inventory warning: if the quantity of materials
will take up more time for project team members
is less than the minimum inventory and greater
and will affect the normal operation of the enterprise
than the maximum inventory, the shortage
for a longer time. With the overall implementation
alarm and overflow alarm are required
strategy, with the exception of some support person-

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(v) Inventory balance query: query the remaining nel, most members of the project team can be
inventory quantity of each material, and adjust released to invest in other work or projects after
it in time the completion of the system support handover.
Based on the above considerations, the automobile
(vi) Statistical query: summary of monthly material company adopts an overall implementation strategy,

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storage and material consumption which is conducive to shortening the project time,
saving project costs, and improving implementation
efficiency
3.4. Strategies Implemented by SAP. Implementation strate-

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gies include overall implementation and step-by-step imple- 4. Results and Discussion
mentation. The overall implementation means that all
processes and system solutions are designed, implemented, 4.1. SAP System Usage Analysis. The importance of ERP
and delivered at the same time. Step-by-step implementation training SAP is a set of highly information-based manage-
refers to the process, and system plan is divided into several ment software. If you want to fully apply SAP software,
components; each part is designed, implemented, and deliv- you must understand a lot of knowledge, IT knowledge
ered in batches according to the order of completion. The and business management knowledge. Therefore, if you
overall implementation requires more resources in a certain want SAP to serve the enterprise, to enhance the enterprise,
period of time, but the overall implementation time is shorter. it is necessary to carry out technical training vigorously, and
Step-by-step implementation is mainly used for projects with the implementation of ERP must not be an optional tool.
limited resources. It requires less investment in a certain Therefore, it is necessary to train the company on the prin-
period of time, but it will prolong the implementation cycle ciples of ERP, train the principles and functions of ERP, why
of the project. Based on years of project experience, the imple- do you want to go to ERP, let the company have a full under-
mentation team believes that the overall implementation effi- standing, and also train the management so that leaders
ciency is better than stepwise implementation. should pay enough attention to the role of ERP in the com-
pany and support the implementation of ERP and be able to
(1) Using a step-by-step implementation strategy, the lead the team to implement ERP effectively. Only when the
system schemes completed in the previous batch leaders of the enterprise pay attention to it, the grassroots
are likely to be readjusted during the design and employees can pay attention to it. Therefore, ERP training
Wireless Communications and Mobile Computing 7

Comparison before and aer training Order fulfillment rate

50 40

Probability (%)
30

D
40
40
Effectiveness (%)

10
30
0
5 10 15 20 25 30 35

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20 Time (days)
Before applying SAP
10 Aer applying SAP

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Timely delivery rate
0 100
0 20 40 60 80 100 120 140

Probability (%)
Time (minutes)
50
Before training

C
Aer training

Figure 3: Comparison of employee work efficiency before and after 0

training. 5 10 15 20 25 30 35
Time (days)
Before applying SAP

A
is very important in enterprises. Not only need to carry out Aer applying SAP
theoretical training, but also to carry out operation and
application training for grassroots employees, which can Figure 4: Order status of automobile manufacturing companies.
improve the efficiency of daily work. The comparison of
the work efficiency of employees before and after training Table 1: Specific economic benefits.

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is shown in Figure 3.
During the project implementation process, the imple- Before After
Contrast content
menting party assisted the automobile company base to implementation implementation
introduce advanced management concepts and refined the Sales revenue RMB 8.2 billion RMB 12 billion

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ideas through process design. After implementing the SAP Gross margin 24% 42%
ERP system, automobile manufacturing company A has Delivery achievement rate 60% 90%
realized the whole process of automation of the company’s Turnover of finished products 15 days 8 days
business process from sales order to order delivery, and the Finished product inventory
whole process can be carried out under the supervision 76% 98%

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accuracy rate
and control of management personnel. This complete and
Days of accounts receivable 56 days 38 days
lean management model has significantly improved the
order fulfillment rate and timely delivery rate of automobile Bad debt rate 5% 2%
manufacturing company A. From the comparison before Proportion of expenses 10% 5%

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and after the launch of the SAP project, the above two indi-
cators have increased by 1.5 times, the order fulfillment rate tion of the SAP ERP system, the overall informatization level
has increased from 30% to 45%, and the timely delivery rate of car manufacturing company A has been greatly improved,
has increased from 60% to 90%. The order situation of the which has improved the communication efficiency between
automobile manufacturing company is shown in Figure 4. departments, headquarters, and branches and indirectly
Faced with the challenges of mixed-line production increased the overall operating costs of the group. After the
requiring timely and accurate distribution and reducing SAP ERP system went live, the total turnover of automobile
inventory, the SAP system realizes efficient coordination manufacturing company A increased from RMB 8.2 billion
and information sharing of production, inventory, and pro- to RMB 12 billion in two years. The specific economic ben-
curement and flexibly supports JIT (Just-In-Time) Kanban, efits are shown in Table 1.
VMI supplier management inventory, etc. A variety of busi- In the process of implementing the SAP ERP system in
ness models improve the efficiency of business processing car manufacturing company A, the manpower of key depart-
and achieve the purpose of full logistics collaboration. Based ments was organized, and the master data of each module
on the status quo of basic management and information was cleaned and converted, which ensured that the SAP pro-
construction of an automobile company, the goal of this pro- ject of car manufacturing company A can be successfully
ject is to establish a new core operating system for the base launched. SAP inventory is shown in Figure 5.
through the implementation of the SAP system and to lay
a solid foundation for the development of the base business 4.2. Company’s Economic Benefits. With the continuous
in City A. Due to the successful launch and smooth opera- increase in the business scope of car manufacturing
8 Wireless Communications and Mobile Computing

100

Probability of eacg factor (%)

80

D
60

40

E
20

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Time (days)

T
Production plan achievement
On-time storage rate of production orders
Figure 5: SAP inventory (http://alturl.com/or6i4).
Figure 6: Product quality.
Table 2: Specific economic benefits.

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Table 3: Economic benefits of material management.
Before After
Compare content
implementation implementation Before After
Contrast content
Average number of projects implementation implementation
30 10
per month Procurement delivery time
40% 98%

A
Monthly sluggish material achievement rate
1.5 million 200,000
scrap Qualified rate of supplier
Daily production plan 86% 96%
59% 89% incoming materials
achievement rate PPAP submission Unable to
Weekly production plan 95%
achievement rate count

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56% 85%
achievement rate PPAP incoming material Unable to
90%
qualification rate count
company A and the continuous increase in product types, in Inventory accuracy 80% 95%
the two years since the SAP ERP system was launched and
Finished product inventory

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then operated smoothly, the number of engineering changes 86% 92%
turnover accuracy rate
proposed by the company each month has been greatly
Number of days around
reduced, thus making group A overall quantity and amount 15 days 8 days
semifinished product
of sluggish materials significantly reduced. The specific eco-
nomic benefits are shown in Table 2.

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In addition, the monthly production plan achievement rate 7000
increased from 50% to 82%. The on-time warehousing rate of
6000
production orders has increased from 60% to 88%. The one-
Amount (ten million)

time pass-through rate of products increased from 78% to 5000

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92%. The FQC pass rate has been increased from 90% to
4000
95%. The product quality customer complaint rate dropped
from 6% to 1%. The product quality is shown in Figure 6. 3000
In the process of implementing the SAP ERP system,
2000
automobile manufacturing company A has configured an
alarm function for the company’s safety stock, the quantity 1000
and total amount of stock sluggish materials in the MM
0
module. This time, through the implementation of the SAP 1 2 3 4 5 6 7 9 10 11 12 13 14 16 17 18
24
22
23
21
20
8

15

19

system by car manufacturing company A, these information Product maintenance time (month)
flows were integrated and unified, and the operation was
2018
carried out under a SAP platform. According to this plat-
2019
form, the overall operating efficiency of car manufacturing 2020
company A will be greatly improved, and corporate manage-
ment costs will be reduced accordingly. The economic ben- Figure 7: 2018-2020 financial situation of company A.
efits of material management are shown in Table 3.
After implementing SAP system inventory improvement ing company A uses the powerful data analysis and data
measures, company A’s inventory management has been intelligent processing functions of the SAP ERP system to
effectively improved, and the effect is significant. After present the financial, cost, and profit management analysis
implementing the SAP ERP system, automobile manufactur- of automobile manufacturing company A in a good form.
Wireless Communications and Mobile Computing 9

As a result, automobile manufacturing company A has made [2] T. N. Varma and D. A. Khan, “SAP system as vendor fraud
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5. Conclusion tional Journal of Logistics Management, vol. 12, no. 2,
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E
of supply chain management system for automobile management: a structural integration,” Supply Chain Manage-
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the information island phenomenon as far as possible, and ability: a recognition foundation of sustainable supply chain
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chain technology. This study is helpful to provide guidance of an Indian higher education institute: a sustainable educa-
for the long-term development of enterprises. The establish- tional supply chain management perspective,” International
ment of the supply chain of this paper is centered on the Journal of System Assurance Engineering and Management,
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parts manufacturers, dealers, and other members and how

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[10] D. J. Fiorino and M. Bhan, “Supply chain management as pri-
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Disclosure chain management: an enabler investigation,” Journal of

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supply chain management reduce greenhouse gas emissions
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Authors’ Contributions supply chain information based on wireless sensor network,”
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