Before implementing SAP applications, we had a number of legacy systems. Our goal was to adopt a single solution, easy to deploy in the new manufacturing units
Carlos Alberto Andreguetto, IT Manager for Brose do Brasil

With a strong presence in the Brazilian automotive manufacturing industry – two out of three vehicles are equipped with Brose components – the German-based automotive component manufacturer has a plant located in the federal state of Paraná since 1999, and was a forerunner regarding a number of innovations also in the Brazilian automotive industry. Brose was one of the first manufacturers to adopt the “just-in time” (JIT) and “just-in-sequence” (JIS) manufacturing models, and lead the way with the adoption of SAP applications to support its business and manufacturing processes.

The Brose plant built in the brazilian city of Curitiba was a major milestone that helped trigger the worldwide expansion of the Brose Group in SAP use. “The pilot project developed for Curitiba set the standards for the whole company”, says Carlos Alberto Andreguetto, IT Manager for Brose do Brasil. Because of the different Just-in-time models, in which the right components and assemblies must always be in the right place at the right time, and in the right sequence, predefined by the plants’ manufacturing schedule, Brose became aware of the need to adopt standard applications on a global basis. That’s why Brose chose SAP ERP applications and the SAP for Automotive with JIS solution and adopted this solution as the standard application for all processes involving its logistics and supply-chain management needs.

	The information system is no more a critical aspect in the deployment of new plants. Today, system integration is a process that has a low impact on our general operations
Carlos Alberto Andreguetto, IT Manager for Brose do Brasil

“The system consolidation into a single application was a crucial prerequisite to Brose’s expansion,” recalls Andreguetto. Because the Brazilian plant was the newest plant to be deployed, among the eleven already existing plants spread throughout the world, this plant was chosen to host the first system rollout. “Before implementing SAP applications, we had a number of legacy systems,” says the IT manager. Andreguetto highlights that the primary goal of this project was to adopt a single solution, easy to implement in new manufacturing units.

The Curitiba plant was installed in 1999, to meet the first Brose client’s demands in Brazil, under the JIS concept. The Brazilian plant soon became a reference to the other Brose Group plants. According to Andreguetto, the application rollout in Brazil was twice as challenging as any other implementation, because in spite of being a pilot (with novice and inexperienced employees to run SAP applications and logistic processes for the automotive industry) the project could not possibly fail, because Brose was already committed with the first client.

“A decisive aspect was SAP’s experience,” states Andreguetto. The project managed by SAP Consulting took as little as ten months to become alive. “We adopted practically all the automotive industry modules available.” He adds that SAP’s experience in this industry, plus the flexibility of its architecture and Brose’s need for global standards were the decisive aspects for choosing SAP. Managed by SAP Consulting, Brose’s project uses a database located in Germany that can be accessed by all plants, worldwide. “By design and infrastructure, SAP ERP can be deployed as a stand-alone application in each manufacturing unit, or it can be used as a single integrated model, where all manufacturing units can access the same central database.

	The information system is no more a critical aspect in the deployment of new plants. Today, system integration is a process that has a low impact on our general operations
Carlos Alberto Andreguetto, IT Manager for Brose do Brasil

Brose adopted the unified model. According to Andreguetto, Brose’s environment facilitates consolidation. Brose and SAP employees jointly developed the prototype under the project management of SAP Consulting. The SAP consultants provided implementation support and process consulting, which also covered technical queries, and carried out end-user training and ongoing support, including some specific projects.

In 2006, SAP applications supported the production of windows regulators (4.1 million components), door modules (200 thousand units) and seat adjusters (500 thousand units) in Brazil. “These three business units manage hundreds of components”, says Andreguetto. Today, with about 27 plants throughout the world, the Brose Group supplies the largest global automotive manufacturers and the leading seat-manufacturers.

Thanks to the expertise of SAP’s specialists on projects of great complexity, Brose’s implementation enabled full integration and consistence with all automotive supply chain processes, making it possible for Brose to schedule the delivery of its components in a more optimized, quick and objective way. Besides, Brose could also integrate all processes to the requirements of all its clients. The result: inventory levels are never overstocked and are totally appropriate to the company’s needs, processes are leaner, and customers enjoy customized configurations.

	A prerequisite for Brose’s expansion was to consolidate all systems under a single application
Carlos Alberto Andreguetto, IT Manager for Brose do Brasil

Next steps include migration of SAP ERP to ECC 6.0, in 2007. Andreguetto states that, since the first application was deployed, back in 1999, Brose also implemented some solutions from other vendors that were eventually integrated to SAP’s solution. One of them was the Import application. It is difficult to say if the strong international growth is a consequence directly related to the adoption of SAP applications, but SAP technology certainly played a crucial role to make this expansion happen. “The system rollout that before took months, can now be planned within weeks. The information system is no more a critical aspect in the deployment of new plants. Today, system integration is a process that has a low impact on our general operations.”