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MMPC Taps IBM for SAP Vehicle Management System Project

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In partnership with IBM Consulting, automotive company Mitsubishi Motors Philippines Corporation (MMPC) has implemented SAP Vehicle Management System (SAP VMS) on S/4HANA to help transform its processes across the vehicle supply chain and business operations.

According to the Truck Manufacturers Association (TMA) and Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI), 2021 proved to be a “recovery year” for the automotive industry with an overall vehicle sales growth of 20{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} compared to the same period in 2020. The two groups’ recent report indicated that MMPC sold 4,065 vehicles in December, up 3.8{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} from November’s 3,918 deliveries. During the same month, the country’s second-biggest seller of automobiles accounted for 14.61{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} of total revenues.

To keep up with the company’s rapid business growth, MMPC embarked on a digital transformation journey leveraging the latest SAP technologies combined with IBM Consulting’s expertise. The modernisation project of the Philippine automobile manufacturer — which is one of the manufacturing facilities of Mitsubishi Motors Corporation outside Japan — is centered on implementing SAP VMS on S/4HANA following its migration out of Application System/400 (AS/400), a midrange IBM server computing platform for business computing.

It is understood that the VMS solution deployed by IBM includes capabilities to address financial, vehicle sales, and logistics operations. SAP VMS on S/4HANA provides a central solution to support vehicle importers with business operations such as working with dealers and Original Equipment Manufacturers (OEMs) in new and used vehicle sales.

Moreover, the SAP VMS implementation is aimed at equipping MMPC with a unified view of its operational processes, allowing for faster access to critical information, as well as end-to-end visibility of vehicle data from manufacturing to end-customer and compliance with regulatory reporting requirements. According to IBM, MMPC was also able to lower operational costs and reduce its manual finance tasks as a result of the integrated financial and management accounting platform.

Implementing SAP Vehicle Management System on S/4HANA

MMPC is also embarking on its cloud journey with the deployment of SAP S/4HANA, the German tech giant’s fourth-generation enterprise resource planning (ERP) system. As the 2025 deadline for SAP S/4HANA migration draws closer, more and more enterprises in the APAC region are exploring migration options and strategies. Amidst a highly-competitive industry, SAP S/4HANA adoption entails a significant shift in how organisations leverage technologies and develop applications to translate it into performance and service delivery.

Expounding on the company’s move to the cloud, MMPC President and CEO Takeshi Hara shared that the SAP S/4HANA deployment provided them with a comprehensive roadmap to improve and expand its operations. He said that MMPC continues to modernise processes to support its plans to export to other markets and further the increase of its vehicle sales.

“It has set the stage for us to accelerate our digital transformation journey to enhance client experience with our brand, acquire new customers and drive greater collaboration with the ecosystem and beyond for future growth,” he highlighted.

Meanwhile, IBM Philippines President and Country General Manager Aileen Judan-Jiao noted that the system implementation and migration have given MMPC the ability to analyse data for ERP and production in order to gain economies of scale. She explained:

“MMPC is an industry beacon in executing change management and digital transformation during the pandemic, through the best use of technology that optimises cost and improves efficiency. Transitioning to a new system during enhanced community quarantine was fraught with challenges and IBM was privileged to have the trust and confidence of MMPC that we would get the job done. And we did.”

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