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Case Study | BMW AG

Standardizing logistics and
finance processes to improve
efficiency, transparency and
performance

Fast facts Each of BMW’s European plants had
long used different logistics and finance
BearingPoint is helping BMW redesign processes, and each relied on different,
and standardize the logistics and
aging legacy systems. To improve
finance processes at its largest plants.
efficiency, transparency and performance,
BMW turned to BearingPoint for redesign
and standardization of its supply chain
processes. The collaboration included the
implementation of the SAP R/3 automo-
tive solution for BMW’s largest plants.

Case Study | Automotive

Finally. 2 Automotive | Case Study . learned in these collaborations to the much larger tasks in Germany. each plant used a different legacy BMW group. as well as involved were diverse and complex. plan posed several major challenges.3 billion euros. BMW engaged BearingPoint to imple. of our extensive knowledge of the the plants involved are huge. people and winning support for the tions. The lack of system. assist BMW in this ambitious effort. as well as maintain other company’s car manufacturing plants in largest manufacturers of motorcycles vital processes efficiently within the Regensburg and Leipzig. Germany and England. in China and in South ment a two-stage plan. Implementing the aging. BMW faced a learned in the first stage. Implementations were taking place in The lack of standardization made it the company’s largest. process and lenges. however. These conditions made main- standardization also made key taining system performance and stability accounting procedures more difficult. quality they had to be connected in such a way assurance and other vital processes that they would perform as a single within the supply chain. Introducing of providing supply chain management new processes to large numbers of support to the world’s largest corpora. highest volume difficult for BMW to track material flow plants in Germany. from October 2002 through January 2004. with 2004 revenues of supply chain. In the second and automobiles. More. central goal was to connect the systems further decreasing efficiency. England. In addition. Even with its size and market strength. as well as at its plant in system. within each plant to the company’s BMW engaged BearingPoint as a trusted central accounting system. We helped major operational challenge. and those systems were rapidly Oxford. South Carolina. so that it advisor to redesign and standardize its could manage all of the plants almost logistics and finance processes because as if they were a single plant. produced processes within each plant. employing automobile industry and our long history tens of thousands of people. BearingPoint drew on lessons 44. used different Germany. We were able to apply the lessons (standardization of logistics processes).Fast facts Responding to the need for In the first stage. The technical systems and consumption efficiently. as well as implement the SAP R/3 automotive solution for its BearingPoint was well positioned to largest plants. located in and finance processes at Dingolfing. called STARD Africa. a special problem. BMW’s redundant data and slowed data flow. The assignment included helping changes presented additional chal- BMW develop its strategy. real-time costs of parts and materials. and maintain production control. the lack of standardization simply improving logistics and finance required complex interfaces. we had Designing processes in a helped the company modernize and standardize its logistics and finance complex supply chain processes in plants in Spartanburg. the largest and most complex logistics and finance processes. Its largest BMW redesign and standardize logistics and most complex plants. governance. especially determining the actual. stage. BearingPoint Lack of standardization made it difficult change helped BMW redesign and standardize for BMW to track material flow and logistics and finance processes in the The BMW group is one of the world’s consumption. more was required than Finally. car manufacturing plant within the over. Starting in the late 1990s.

external accounting (FI) the SAP for Automotive solution. quality assurance. internal accounting (CO) collaboratively to blend BMW’s program • Material master management tools with tools developed by BearingPoint for BMW. transparency and Management MM PP FI CO MM PP FI CO • Disposition • Disposition performance • Goods received • Goods received • Accounts payable • Accounts payable BMW is already seeing the results of standardization.Creating a homogeneous. and BMW Standardizing logistics processes has cut A BearingPoint team of more than 100 the costs and increased the efficiency of personnel who knew the systems were consultants and software developers is material flow. our team worked flexibly and CO • Controlling. plant retiring. material requirements planning and other aspects of supply chain management. quality assurance. • Easy integration of external suppliers Integration of a distributed system landscape (SAP to SAP integration) Data • Integration of numerous separate SAP distribution Central SAP R/3 System Purchasing logic systems • Vendor master Central invoice verification and • Scheduling agreement MM The key technology component Central retrospective • Purchase orders price changes supporting BMW’s redesign and standardization of its supply chain is FI • Finance. framework (see Figure 1) includes: the company now has centralized • Consistent processes for series parts. . Bill of materials • Accounts payable. Plant 1 SAP System Plant 2 2 SAP System 2 SAP System 2 Material Efficiency. such as the Plant 6 Application link Microsoft® Excel-based START COCKPIT. In addition. • Consistent integration of the finance processes in all logistics processes • Standardized IT systems • Continuous. maintaining legacy systems had become increasingly expensive because Fast facts integrated structure companies that had built the systems had gone out of business. mate- software is lowering IT costs and will standardization of BMW supply chain rial requirements planning and other make it easier for BMW to maintain processes at its key plants. Introducing standardized SAP implementing a redesign and maintenance. Further. production control. production control. plant main. Automotive | Case Study 3 . accounting tools that make it much overhead cost parts and maintenance easier to track all financial aspects technology of manufacturing and supply chain processes. enabling SAP System Plant 5 2 These tools continue to support change SAP System Plant 4 2 management and issue management SAP System Plant 3 2 within the STARD program. Standardized logistics processes have cut the costs Goods Electronic Goods Electronic received receipt received receipt and increased the efficiency of material (GR) settlement (GR) settlement flow. The new aspects of supply chain management. complete construction of the supply processes Figure 1... addition. and support software. In Central pay. (ERS) (ERS) tenance.

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