Toyota Group, a multinational Japanese automaker, used SAP S/4HANA and SAP HANA to help align the organization’s accounting system with international standards. Toyota will have a centralized information sharing system after integrating these SAP technologies into its new accounting system, which will aid the corporation in quickly adapting to market and business developments.
As a pioneer in car manufacturing worldwide, Toyota enlisted SAP’s assistance in developing the framework for its new corporate-wide accounting information system. Hiroaki Kitazawa, Toyota executive general manager and field general manager of the Information Systems Group, said, “We are eager to profit from faster response times to growth strategy decisions and latent and future hazards in our business.”
In This Article...
What ERP does Toyota employ?
Every second counts when a company has an international distribution network. Each workflow needs to be improved. Every change must be implemented cautiously, or the consequences could be disastrous.
A functioning enterprise resource planning (ERP) system is required in these activities to maintain competitiveness and gather essential data for critical business decisions. ERP software needs to be extremely adaptable, strong, and simple to use.
Given that many ERP software solutions are created as a one-size-fits-all solution, that is a challenging request. Major ERPs have a significant drawback for organizations like Toyota Industries Corporation: they couldn’t easily add new functionality to meet the corporation’s constantly changing needs.
“According to an interview with Odoo with Cyril Cottet, IT/IS Manager at Toyota Material Handling, “in our highly “aggressive” business, we couldn’t take risks with really substantial investments.” “We required a rapid return on our efforts, therefore a standard ERP was unquestionably not the best option.
Odoo’s Advantage Over Other ERP Solutions
When Toyota Material Handling in France needed an ERP solution, they looked at the available enterprise-level solutions and decided on Odoo. Amazingly, it took them just six months to implement the software. What distinguishes Odoo from other ERP systems? Through a burgeoning development ecosystem, Odoo enables third-party app developers to provide additional functionality for Odoo users. Traditional ERPs couldn’t provide this advantage; while some enterprise ERP software suites permit feature development, new features must necessarily be more constrained because they are not open source. More significantly, Toyota Material Handling didn’t have the time to devote to developing those extra capabilities because they needed to quickly adopt a new system to preserve facility efficiency.
Toyota Material Handling was able to concentrate on tailoring the ERP’s platform for their particular business needs by selecting Odoo. By using community-developed apps to enhance the basic functionality of Odoo, they could add new capabilities as they were required. Additionally, Toyota may integrate Odoo with its existing systems, significantly lowering the learning curve for staff members.
The end result was an ERP that was just as strong and adaptable as a proprietary program, but it was also considerably more affordable and flexible because it used Odoo.
According to Cottet, “There has been a lot of integration in only a few months. Now all the orders from bookings to invoicing are integrated with our accounting system, with our shipment management system, with our manufacturing system here in France and in Japan. This was completed fairly rapidly between September and the end of March.
The open design of Odoo ultimately won Toyota Material Handling over. Toyota’s best IT asset, according to Cottet, is its workforce, and Odoo enables them to utilize this resource to its fullest potential. The user experience is another consideration; Cottet calls the program “very ergonomic, an accurate assessment of Odoo’s user-friendly interface.
What is the purpose of SAP HANA?
SAP HANA is a quick and strong database that offers multi-model, real-time data analytics. It is a platform for enterprise resource planning (ERP) software and other business applications.
A multi-model database called SAP HANA (High-performance ANalytic Appliance) keeps data in memory rather than on a disk. Due to this, data processing occurs orders of magnitude quicker than it would in disk-based data systems, enabling sophisticated real-time analytics.
SAP HANA is a platform that can be installed on-premises, in the cloud, or both as part of a hybrid cloud system. It supports enterprise resource planning (ERP) software and other business applications.
SAP HANA combines data from several organizational departments, such as:
- Contracts and spreadsheets are examples of standard business documentation.
- Website forms, emails, and other consumer contacts are all examples of UX/UI (User Experience/User Interface).
- Mobile data from your workforce’s mobile devices and your customers’ mobile devices
- Data from the numerous sensors that are present in every area of a business, from warehouses and vehicles to shops and offices, is collected through IoT (Internet of Things).
The SAP HANA system not only unifies all of this data but also uses machine learning and artificial intelligence to quickly and thoroughly evaluate it. By delivering critical operational insights, this system speeds up real-time decision-making.
Terabytes of untapped potential exist in many organizations’ large amounts of data that effectively sit in a data warehouse and offer little value, but which may be leveraged to hasten business impact and boost consumer value.
SAP HANA uses a company’s data to streamline operations, eliminate errors, and benefit clients, customers, and workers with its blazing-fast, in-memory processing and real-time data analytics powered by machine learning. Up-to-the-minute product availability that can be viewed on any smart phone can increase consumer satisfaction. Simplified accounting procedures, instantaneous updates on benefits or vacation time, and improved collaboration tools will keep staff members pleased. And aid managers and executives in making long-term plans using predictive analytics that can anticipate problems with the supply chain, control cash flow, and integrate team operations for greater effectiveness.
When SAP created the SAP HANA appliance for the first time in 2012, it began to build cloud-based products. In 2015, SAP introduced SAP S/4HANA, a next-generation business suite created exclusively to run on the HANA server.
Utilizes Toyota Odoo?
The Toyota Industries Corporation, which engages in the material handling sector throughout 5 regions, includes Toyota Material Handling France. The company primarily concentrates on producing and marketing forklifts across Europe, with its expertise being Toyota-branded electric and IC-powered counterbalanced vehicles. With 735 Toyota trained experts available at an average distance of 25 km from any site, they also offer technical solutions and support.
The business imports trucks from Japan, China, and the US in addition to its own production within Europe. Thus, some of the trucks can also be customized in their France office based on customer needs.
A Quicker Return on Investment
Toyota Material Handling faced some significant organizational changes in their company a few years prior to deploying Odoo. The goal was to reorganize their business processes such that their supplier unitsone in Sweden, one in Italy, and one in Francecould effectively manage their European distribution network.
Prior to the implementation of Odoo, they had a built-in solution for the setup of their highly customized vehicles, which account for close to 40% of their total revenue. The issue they encountered was that, in the background, the Italian factory lacked the requisite tools to follow all the stages required to:
- Organize the creation or acquisition of the appropriate trucks from the appropriate business unit abroad, and then arrange for shipment and client billing.
Since their old solution doubled as the configurator, altering one component of it required tearing down the entire old system and installing a new one. After doing some research, they discovered that they could either replace the outdated solution with a new, custom-made one or with an off-the-shelf one.
Since Toyota Material Handling didn’t already have an ERP in place, they looked into it as a potential solution, but because they operate in a “aggressive” market, they couldn’t afford to take chances with extremely significant investments. A standard ERP turned out to be the worst option for their needs because they wanted a speedy return on their investment. That left them with only two options: develop their own system from scratch or go for a less expensive one. Odoo was the only option that could pass the test. Toyota Material Handling chose Odoo and its official partner, Smile, for many other reasons.
The Scope of the Odoo Implementation
Although they first concentrated on sales, the scope of the solution they executed was far wider;
For them to manage their orders, they first needed Odoo Sales. They require Odoo Inventory in order to check if the right products are accessible as soon as a customer places an order.
On the one hand, they have things that are produced internally using Odoo Manufacturing.
They also have a few items that are imported from their manufacturers in China, the US, and Japan, and they use Odoo Purchase for those.
To be able to invoice their clients straight from Odoo, Odoo Accounting was implemented.
Are you looking for an Official Odoo Partner to help you implement your Odoo Enterprise solution? Locate a partner near you
Between September and the end of March, there was a lot of integration accomplished in a short period of time.
Benefits of a Fast, Reliable and Open Solution
After only six months of integration, Toyota had already started using the Odoo system. Since they had been maintaining an internal solution and now had an official solution, they were confident they would save a significant amount on the maintenance costs of the new IT solutions. Additionally, they were aware that every time Odoo received an update, useful additions would be released as well. These features were simple to integrate and would benefit their users.
Timing was one of the most crucial elements for Toyota. If it weren’t for Odoo, they weren’t sure they could have implemented the adjustments they desired in time. Odoo provided a quick-to-implement solution that satisfied management and gave the business something it could rely on in a few months. The quick implementation period was Toyota’s key advantage; even for a challenging project, they were prepared in a matter of months.
When Odoo was first implemented, they saw its greatest benefit on the information system side because it is an extendable platform on which they can create their complete information system. If possible, the goal is to eventually replace everything with Odoo and run the business entirely with this software. It was crucial for Toyota to have a solution that allowed them to make use of their best IT resourcetheir employees. The organization employs individuals that excel at software development and possess technical knowledge. Due to the open nature of the software, the system’s ability to provide new added value is valued by the organization. Toyota employees are capable of creating new features that are advantageous to the organization with little training.
How is technology used by Toyota?
For the purpose of enhancing the existing driving environment, Toyota is concentrating on local technologies. Vehicles can link through a cloud-based system for specialized services with TOYOTA Smart Center. To make driving easier for the average driver, data is discretely gathered and analyzed.
Is SAP HANA unsuccessful?
Companies are continually looking for new tools in today’s globalized economy that will improve their operational efficiency and financial success. Most businesses decide to transform digitally in order to accomplish this. Although it might be a challenging task, aligning business operations with an appropriate technological configuration has benefits.
There is no doubt that the company is making a significant investment, and a significant part of the choice is to determine which ERP system will be a good fit for your company and which consulting firm will be your ideal implementation partner.
SAP’s S/4 HANA is one of the most talked-about ERP systems on the market right now. And the reason for that is SAP’s unpopular choice, which puts its clients in a difficult situation by mandating that they migrate to S/4 HANA by 2027. Despite the fact that SAP describes S/4 HANA as their “future-ready, intelligent ERP software,” the migration necessitates a complete re-implementation, requiring customers to lose all customizations they had made to SAP ECC and perform them all over in the S/4HANA environment.
The S/4 HANA implementation procedure is onerous, and many attempts have failed horribly, some even leading to multimillion dollar lawsuits. Today, we’ll examine the top 5 epochal S/4 HANA blunders that will unquestionably be remembered as the greatest ERP deployment blunders ever.
SAP HANA is used by who?
Share:
A company makes a long-term investment in enterprise resource planning (ERP) software.
This is so because while switching platforms is now simple with cloud ERP, switching ERP solutions still takes time and money. Since ERP is at the core of a company, changing solutions necessitates altering business procedures and moving all data and personnel to the new system. You can’t simply choose another product and go on when ERP software is at the core of your company.
Therefore, investing in an ERP solution entails investing in a long-term relationship with the software vendor. While understanding and having confidence in the vendor you will be relying on for years to come is crucial, so too are the intricacies of a particular ERP solution.
In light of this, let’s examine SAP, the biggest and most well-known ERP provider on the market right now. No of your sector or business size, SAP is undoubtedly on your shortlist of ERP solutions.
Approximately 77 percent of all global transactions are thought to include SAP software. There is a reason for this: SAP not only played a key role in the development of the ERP market, beginning in 1973 with an integrated accounting solution and steering the sector as it expanded into what it is today. Along with being the biggest ERP provider, it ranks as the 12th largest technology company in the world and is utilized by more than 404,000 companies in 180 different nations.
SMBs also rely on SAP software; 80% of SAP’s customer base is made up of small to medium-sized enterprises (SMBs), which is surprising given the company’s reputation for powering some of the largest multinationals in the world. Most major organizations use Oracle, SAP’s closest competitor, or both.
SAP undoubtedly benefits large companies. However, the business has created unique product lines over time that cater to various market segments. For smaller enterprises, there is SAP Business One; for expanding medium-sized businesses, SAP Business ByDesign; and for bigger corporate clients, SAP HANA, the company’s flagship product.
Although the fundamental technology is mostly the same across all SAP product lines, each is fully featured and created specifically for its target market. A 10-employee company has different needs than a multinational, and vice versa. SAP has therefore created suitable solutions for each.
The company’s all-inclusive ERP system for small to medium-sized organizations, SAP Business One, manages everything from operations and financials to sales and customer service.
SAP Business One is used by more than 60,000 companies, the majority of which have between 10 and 200 people and $1 million and $50 million in yearly revenue. Larger corporations’ subsidiaries usually employ the solution as well. Manufacturers, technological fields, and business services are three sectors that rely heavily on SAP Business One. Retail, energy and waste management, healthcare, construction, transportation, and telecommunications companies are among the industries that often use SAP Business One.
World leader in cryogenic pelletization, Mini Melts, Inc. is situated in Connecticut. Tens of millions of happy consumers in more than 40 countries can now enjoy cryogenic ice cream thanks to MiniMelts’ industry-leading equipment. They have significantly changed the landscape of upscale frozen desserts.
With an estimated $26 million in annual revenue, Plascore Inc., a Michigan-based OEM producer of metal and plastic honeycomb cores for the automotive, electronic, and pharmaceutical industries, uses SAP Business One to manage its manufacturing operations in real-time and handle supplier and customer relationships.
The main application of SAP Business One for David Leadbetter Golf, a Florida-based golf teaching and product company with an annual revenue of approximately $6.2 million, is real-time insight into what its instructors and 31 workers are doing for better overall utilization. Additionally, Business One is used by the organization to handle inventory more precisely.
On the higher end of the SMB spectrum, QALO, a jewelry firm based in California, utilizes SAP Business One to communicate with its more than 500 retail partners. QALO’s revenue increased from $29.4 million in 2017 to more than $100 million by the end of 2018. It uses the system to consolidate all of its everyday operations and automate more than 1,500 orders each day.
For mid-market firms with rapid expansion, SAP offers SAP Business ByDesign. Contrary to SAP Business One, which is accessible both on-premises and in the cloud, it is a wholly cloud-based ERP solution. More than 255 integrations are also included with SAP Business ByDesign, and it scales well for companies that are quickly expanding from SMB to larger enterprise.
The usage of SAP Business ByDesign by small enterprises is not disproved by this. Businesses with between 50 and 200 people and between $25 million and $250 million in annual sales make up the majority of users, but organizations with between $1 million and $10 million in annual revenue and between 10 and 49 employees are roughly equally represented. The major industries using SAP Business ByDesign are manufacturing, life science, distribution, technical, and business services, but it is also widely used in healthcare, energy, education, telecommunications, finance, and retail.
As an illustration, consider Skullcandy, a manufacturer of audio electronics for the snowboard and skateboard markets with yearly sales of about $266.3 million. The business uses SAP Business ByDesign to handle compliance challenges related to having both publicly and privately funded operations, manage inventories, share data with big box stores, and scale operations quickly without causing system disruptions.
Another illustration is Rothy’s, a manufacturer of eco-friendly, 3D-knit shoes. The startup’s journey from a concept and a modest stand in San Francisco’s Ferry Building to generating $140 million in annual revenue took just three years. They think that a lovely, environmentally friendly look is the way of the future.
CeloNova BioSciences, a medical device company based in Texas that produces cardiology and endovascular products and has an annual sales of around $3 million, is a considerably smaller company that also uses SAP Business ByDesign. The company uses SAP Business ByDesign to streamline operations and financial administration while managing its intricate supply chain and adhering to strict FDA regulations.
With more than $100 million in annual revenue, Virginia-based Aurora Flight Sciences, a developer of autonomous systems for aviation, uses SAP Business ByDesign to manage government contracts and costing, work with different currencies and global suppliers, and monitor operations in a dynamic environment.
Then there is SAP HANA, the company’s premier ERP solution, which runs some of the biggest businesses on the planet. Companies who want to combine on-premises and cloud-based systems can use SAP HANA either on-premises, in the cloud, or as a hybrid option.
Although businesses of all sizes, including thousands of ones with annual revenue of less than $50 million, use SAP HANA, the largest users are those with $1 billion or more in annual revenue. But businesses with more than 1,000 employees make up the majority of SAP HANA clients.
The huge drilling, refining, and distribution network of BP, a global British oil and gas firm with headquarters in London and an estimated annual revenue of $222.8 billion, is run using SAP HANA for everything from logistics management to tracking oil and gas futures.
With an estimated 35.41 billion in yearly revenue and headquarters in Atlanta, Coca-Cola uses SAP HANA to manage production, sales, and distribution throughout a large portion of the globe in addition to managing its workforce and extensive supplier network in real-time.
Then there is 3M, a global manufacturer based in Minneapolis with an estimated $31.66 billion in yearly sales. More than 55,000 different goods are manufactured and distributed by the company across 65 different countries using SAP HANA.
ConAgra, BASF North America, Audi AG, Burger King, and Citrix are just a few of the notable companies that employ SAP HANA.
These are only a small sample of the hundreds of thousands of firms who use SAP enterprise resource planning software to run their operations.
Companies that choose SAP as their ERP foundation partner with a company that helped pioneer the ERP market and continues to dominate it. They are also in excellent company.