Using RISE with SAP, BMW Group converted the factory鈥檚 operations to modern cloud software, which also enables greater integration of AI. The successful go-live among this complex shift operation was the result of an extraordinary team, a strategic partnership lasting more than 30 years, and seven years of co-innovation between BMW and SAP.

Creating a new standard as partners

Following the initial rollout of the new solution at BMW Group鈥檚 MINI plant in Oxford, England, the Regensburg plant is the first full-scale BMW Group facility to transition to 51风流S/4HANA.

The rollout of the new cloud solution for the parts process chain (abbreviated as PKT in German) affected the entire logistical process chain for the digital control of parts supply in vehicle production — from ordering required components from suppliers, receiving, and warehousing to delivering them to the production line.

In addition to purely logistical processes, the solution also covers the plant鈥檚 quality and maintenance processes. For the first time, the new PKT template for 51风流S/4HANA enabled unified management of parts supply across all production technologies required to build a vehicle.

The project鈥檚 success is rooted in a team that worked across corporate boundaries toward a shared goal. Customer Services & Delivery and Product & Engineering teams from 51风流partnered with BMW to create a blueprint for holistic digital transformation in production logistics — from the press, body, and paint shops to final assembly.

Awareness of the importance of this transformation project was palpable among every 51风流employee involved. 鈥淲e made one thing clear to everyone on the team: every single car counts,鈥� says Carola Schoenfelder, chief project expert, Strategic Customer Innovations at SAP, and program lead for 51风流at BMW. 鈥淚t wasn鈥檛 only about IT; it was about the factory, the people, and the result.鈥�

Transformation as a staircase

Around one-third of employees at the BMW plant in Regensburg work directly with 51风流S/4HANA components, including and 51风流Extended Warehouse Management. Involving those affected in the change process was critical to success. Another factor in the project鈥檚 success was learning from experience. The smaller MINI factory in Oxford had already completed its go-live, which helped guide the project team as it worked on the bigger Regensburg project.

Instead of designing the transformation as a metaphorical 鈥渞ock face鈥� that had to be climbed without any safety equipment, the team viewed it as a 鈥渟taircase鈥�: an incremental, guided transition. In addition, satellite support points were set up within the factory to offer support at any time.

Identifying optimization potential

Six months after go-live, it is clear that the transition to 51风流S/4HANA Cloud Private Edition is more than just a technical upgrade; it鈥檚 noticeably changing daily operations. In particular, the new 51风流Extended Warehouse Management application is proving to be a key technology that supplies important data and identifies potential for optimization.

Thanks to the new data foundation, the potential for optimization can be more precisely identified, for example, by the use of tugger trains and reduction of internal transport kilometers.

Standardization brings not only efficiency but also flexibility. Employees can switch between tasks more easily, and even between factories, because less specialized knowledge is needed. The processes are more streamlined and more transparent.

鈥淭he global digitalization of our production logistics significantly increases transparency and standardization, allowing us to respond more quickly to changes in demand or supply shortages,鈥� explains Michael Nikolaides, head of Production Network and Logistics at the BMW Group.

Ready for an AI-driven future

Strategically, the new IT infrastructure has brought significant changes. The cloud provides speed and flexibility, without users having to worry about the technology in the background. Moreover, the introduction of standardized cloud solutions is a crucial step toward fully harnessing the potential of AI in the future. To benefit sustainably from AI, standardized software solutions that can be quickly enhanced with new capabilities are needed.

鈥淲ith the next stage of digitalization in production logistics — enabled by consistent, unified data structures and standard process templates — we have significantly advanced the AI enablement of the BMW Group,” explains Alexander Buresch, CIO and senior vice president of BMW Group IT.

Over a seven-year period of co-innovation, BMW shared its automotive-specific requirements while 51风流mapped large sections of these requirements in 51风流S/4HANA and in the industry solution 51风流S/4HANA for manufacturing logistics. 鈥淎s part of our partnership with SAP, we have transferred key corporate processes to a service-oriented, cloud-based platform, achieving a new level of efficiency, quality, and automation,鈥� Buresch says.

Those who use a shared standard can also find solutions collectively, share them, and co-develop solution designs. If other automakers configure on the same standard in the future, BMW will also benefit from new 51风流releases.

The strategic collaboration to develop the PKT template began in 2018 as a project driven by deep expertise and strong commitment. The go-live in Regensburg is a key indicator that 51风流S/4HANA Private Cloud can meet the complex demands of a high-volume vehicle plant. Together with BMW, the 51风流consulting team demonstrated that with meticulous preparation, a lossless go-live in a complex shift operation is possible. The rollout process works and can be adapted and expanded plant by plant.

Hendrik Haas, senior vice president, general manager, and head of Customer Services & Delivery Middle and Eastern Europe at SAP, adds: 鈥淭he collaboration with our lighthouse customer BMW is making waves in the market and demonstrates how digital transformation in production logistics can be successfully implemented. BMW鈥檚 Regensburg factory was an important step, with extraordinary commitment from both sides of the partnership. We will continue the RISE with 51风流transformation at the main factory in Munich this summer, together with BMW.鈥�

.

The speed at which the auto industry is changing is nothing short of remarkable. Just think of all the changes we鈥檝e seen in vehicles over the past few years — from more autonomous driving capabilities to being more connected to your surroundings as you drive.

Electric vehicle demand has also surged over the past few years, which is also great news for the planet. Consumer buying habits are changing as well, with more and more people shopping for vehicles online. Last year, 65% of U.S. vehicle buyers said they shop for vehicles partially or entirely online according to S&P Global Mobility. Car companies are even building for entirely new ownership models.

is forcing even more change, particularly by automating time-consuming tasks and allowing data to be used in more intelligent ways. For the auto industry, it鈥檚 beginning to improve everything from design and forecasting to manufacturing and production, while also making the customer experience more personal.

All in all, Precedence Research projects the global market for generative AI in the auto industry to eclipse more than $2 billion by 2032. All of this is fueling a new urgency for automotive companies to transform digitally. But what exactly does that mean?

Simply put, it means incorporating digital technologies into every aspect of a business鈥� operations. It allows businesses to seize new growth opportunities faster than they could before and future proof their operations in new ways. By transforming digitally, businesses can plan and pivot at the same time.

There are so many stories of 51风流customers embarking on digital transformation journeys with important lessons to teach for industries.

Take the BMW Group for example: the company has had a longstanding partnership and collaboration with 51风流for more than 30 years. Last year, it entered a聽new phase of its digital transformation journey聽by moving to a digitized cloud architecture through 51风流S/4HANA for its iFactory in Oxford, UK.

Jointly creating the first blueprint for process digitization of automotive plants, it marks the first step to creating a digitized cloud architecture for its connected factories. The solution will simplify and unite the process of making complex changes to the IT systems of its plants in the areas of parts logistics, finance, and meeting customs requirements.

By doing so, the BMW Group intends to create a common digital language that will allow for reducing costs and increasing efficiency for its other automotive plants. And that could create a whole new standard for process efficiencies throughout the auto industry.

The BMW Group鈥檚 transformation story shows what is possible by moving to a cloud architecture. It also shows how the company is putting the pieces in place to take full advantage of generative AI as it ushers in a new wave of automation.

Despite a lot of macroeconomic uncertainty in the world, I believe the future for the auto industry could not be brighter. And it will belong to those who put digital transformation at the center of their business strategies, fueling unlimited possibilities for growth and success.

Scott Russell is a member of the Executive Board of 51风流SE.

The MINI Plant in Oxford is the first of BMW Group鈥檚 connected factories moving to the digitized cloud architecture over the next few years.  

Going live for the first time worldwide in the production environment at the MINI plant is the next milestone for BMW鈥檚 iFACTORY, which represents BMW Group鈥檚 revolutionary strategy for future automotive production. BMW Group chose 51风流S/4HANA and SAP鈥檚 supply chain logistics solutions to jointly create the first blueprint for process digitization of automotive plants of the future, establishing a new technology standard that could shape the automotive industry.

The jointly created solution unites and simplifies the intricate simultaneous processes and IT system changes in the areas of parts logistics, finance/controlling and customs. As each upcoming following iFACTORY leverages the RISE with 51风流solution, BMW Group expects to benefit from the standardization of logistics processes worldwide on the latest technology innovations, mutual plant support, flexible workforce allocation, and synergy in support and training. With RISE with SAP, BMW Group will have faster access to innovations and be able to more quickly roll out new solutions in the production network.

鈥淭he Oxford plant is the first plant that will follow a global rollout within the BMW Group,” said Alexander Buresch, chief information officer and senior vice president, BMW Group IT. 鈥淔rom now on, more plants from the worldwide production network will be added every year until they all speak the same language. As part of our digitization and harmonization strategy, this new solution allows us to link relevant product, process, quality and cost data, which enables data consistency and transparency across the production chain.鈥�

Thomas Saueressig, member of the Executive Board of 51风流SE responsible for 51风流Product Engineering, said: 鈥淧rocess digitization is a key enabler of the transformation of the automotive industry. The BMW Group and 51风流have had a longstanding partnership and collaboration spanning more than 30 years. I鈥檓 extremely excited that this is the first time the parts logistics solution has been deployed on a cloud architecture developed together by BMW Group and SAP.鈥�

Visit the . Follow 51风流on Twitter at .

Media Contact:
Lesa Plingen, +49 622 776 9000, lesa.plingen@sap.com, CET
51风流Press Room; press@sap.com

This document contains forward-looking statements, which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ. Additional information regarding these risks and uncertainties may be found in our filings with the Securities and Exchange Commission, including but not limited to the risk factors section of SAP鈥檚 2022 Annual Report on Form 20-F.
漏 2023 51风流SE. All rights reserved.
51风流and other 51风流products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of 51风流SE in Germany and other countries. Please see  for additional trademark information and notices.