Customer Stories

Hyundai

Hyundai replacing legacy systems and implementing Annata Dynamics for future growth.

The Hyundai Motor Corporation started making vehicles in 1967 and is now the largest manufacturer of vehicles in South Korea. SC Motors Sweden AB is a company owned by the Sumitomo Group, Japan and runs the import and distribution network for Hyundai and Mitsubishi in Sweden.

Hyundai Bilar AB (Hyundai Sweden) is the importer for the full line of Hyundai vehicles in the Swedish market. Hyundai was introduced to the Swedish market in 1991. Hyundai runs a dealer network of around 80 independent dealers (monobrand and multibrand) and 100+ independent workshops.

Situation

In 2004, Hyundai Sweden launched a project to select and implement a new ERP system, to completely replace its old legacy systems. The old system map consisted of non-integrated solutions, resulting in reconciliation issues and error tracking between systems. It was only supported by a small local partner. The system was deemed insufficient to support future growth and was considered a risk (what would happen if the small local partner stopped supporting the solution?).

Implementation

They phased it

Hyundai Sweden went for a phased project, leading to three major go-lives, where the Finance department was first to use the new system. The car department followed shortly thereafter and finally, the Service market department (spare parts, accessories etc.).

 

Users bought it

The users had been involved since the early selection part of the project, and in designing the golive solution. They received proper training and post go-live support. The novelty of an integrated-environment did take them out of their comfort zone in the beginning, but adapting was easy when they realized that work in the new system was both more effective and more fun.

 

Leaner process

Hyundai Sweden had a clear picture of what they wanted to achieve in terms of business process improvement. They had documented their as-is and to-be processes. The following list shows some of the processes where benefits have been realized:

  • Vehicle forecast and purchase processes.
  • Vehicle import processes.
  • Vehicle sales processes.
  • Spare parts warehouse stock optimization, process Spare parts purchase process.
  • Spare parts sales process
  • Accessories purchase and sales process.
  • Credit limit control.
  • Financial period close and reconciliation processes.

Solution

Hyundai Sweden undertook a very serious selection project, where the selection criteria included:

Secure, large-scale, standard integrated solution

The ERP system should be widely acknowledged.

Industry specific functionality

The ERP system should already have support for Automotive business (They didn’t want to re-invent the wheel).

Partner experience

Implementation partner should understand the business previous experience within the Automotive Industry was important.

Future proof

The ERP system should have capacity for growth, be it in markets, geography, organization, products or size. Hyundai Sweden evaluated over 100 ERP solutions. A Request For Information (RFI), asking for Automotive functionality and experience, reduced the number  to a short list of five globally respected ERP solutions (you know them all!). Microsoft Dynamics  AX with Annata Dynamics came out as the clear winner.

 

Independant markets

The Annata Dynamics DMS solution and Dynamics AX has also been implemented at various independent Volvo dealers. Amongst the companies using the system are Brimborg in Iceland, Saracakis in Greece and Bulgaria, Robert Aebi in Germany and Switzerland, and Transdiesel in New Zealand.

 

Benefits

Since the availability of business data, direct from the system, -became so much better, the old set of required reports became obsolete. Today, users cater for their own information needs to a much larger extent than before.

For reporting, Hyundai Sweden uses many of the standard reports that come with Microsoft Dynamics AX with Annata Dynamics IMS. These provide extensive drill-down capabilities and the ability to change core reporting requirements as needed. For more powerful data analysis, Hyundai implemented Cognos Business Intelligence cubes and reports.

As testified, dealers and workshops have clearly expressed their satisfaction with the part of the solution that they are using on a day-to-day basis.

Dealers order cars and monitor their status. Workshops order spare parts and track their progress. Paper invoices have been replaced with digital invoices, to the benefit of both economy and environment.

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