Conversion to SAP Next Generation JIT

- What automotive suppliers need to know before the changeover

The automotive industry is known for its just-in-time (JIT) logistics processes, which enable fast, flexible and precise delivery to production lines. Automotive suppliers that have been working successfully with SAP JIT for years are faced with a crucial question when switching to SAP S/4HANA: how can the switch to the new SAP Next Generation JIT (NJIT or NG-JIT) efficiently, and what are the challenges and benefits of the new solution?

1. the challenges of the changeover

The migration to S/4HANA involves a number of technical and procedural hurdles. The following problems can arise, particularly for companies that rely heavily on SAP JIT:

Data migration and compatibilityThe existing system landscape must be carefully analyzed to ensure that existing JIT processes can be mapped in the new system. Data models and interfaces that were used in the old environment often cannot be transferred without adaptation.
Individual extensions or add-ons: In addition to the ERP system, a changeover also affects your existing extensions. Specialized processes in particular, such as those required for supplying OEMs, cannot be mapped by the SAP standard. This will not change with the switch to NJIT. It is best to clarify which process-related and functional enhancements will still be required after the changeover before the changeover.
New process requirementsNJIT brings extended functionalities that may require adjustments to existing workflows. Employees must be trained in these changes in order to make optimum use of the new possibilities.
Integration of EDI and partner connectionsAutomotive suppliers work closely with OEMs and other partners. The changeover to NJIT requires existing EDI processes to be reviewed and, if necessary, adapted in order to remain compatible with the new standards.
Real-time capable systemsNJIT is based on the in-memory technology of S/4HANA. Companies must ensure that their IT infrastructure supports these real-time capabilities in order to reap the benefits of the new solution.

2. important changes and innovations

One key change has a particular impact on OEM delivery: while IDoc messages were used in traditional SAP systems, S/4HANA increasingly relies on modern SOAP-based web services for the exchange of information. SAP offers the so-called Application Interface Framework (AIF), which can be used to integrate these web services.

Anyone who has previously worked with IDoc formats and aligned their processes accordingly must take into account that the switch to NJIT may also involve setting up AIF and the SOAP protocol. This will have far-reaching effects on processes, IT architecture and communication with business partners.

Communication via SOAP means that interfaces and converters may need to be adapted and replaced. Even if you are used to accessing, adapting, checking and correcting IDocs, these options may no longer be possible with the new technology. According to SAP, users will benefit from Real-time communication and modern security protocols.

Our tip: Before you take a far-reaching step such as switching to NJIT and AIF, you should carefully examine how your processes work today, which functions you urgently need and what your customers' requirements are. Only then can you decide whether it makes sense for you to switch and invest in AIF.

In addition, SAP Next Generation JIT offers many new functions that are optimized for the automotive industry:

Extended planning optionsAccording to SAP, NJIT enables more detailed and flexible planning of supply chain processes. The control of JIT and JIS (just-in-sequence) processes has therefore been expanded and offers more options for adapting to specific requirements.
Real-time data processingSAP S/4HANA's in-memory technology enables data to be processed in real time. This allows companies to react more quickly to changes in the supply chain or production planning.
Improved user interfaceThe Fiori interface of S/4HANA offers a modernized, intuitive operation that facilitates access to JIT processes and increases user productivity.
Increased transparencyNJIT integrates seamlessly with SAP's new analytics tools, such as SAP Analytics Cloud. This gives companies deeper insights into their JIT processes and enables them to identify bottlenecks or risks at an early stage.

3. the advantages of the new system

Switching to NJIT brings many long-term benefits that go beyond the existing possibilities:

Increased efficiencyWith the new planning and control options, companies can align their JIT processes even more precisely, resulting in shorter throughput times and lower stock levels.
Better customer relationshipsThanks to real-time data processing and improved integration options, automotive suppliers can react faster and more flexibly to their customers' requirements.

Future securityNJIT is designed to meet the requirements of modern production systems and supports technologies such as the Internet of Things (IoT) and artificial intelligence (AI). This means that suppliers are better prepared for future developments.

4. conclusion

The switch to SAP Next Generation JIT is more than just a technical update - it is a strategic decision that has far-reaching effects on the entire value chain of an automotive supplier. It is crucial to get to grips with the new processes and functions at an early stage, provide employees with comprehensive training and make the IT infrastructure fit for the requirements of real-time processing.

But it must also be said: Not every automotive supplier necessarily needs Next Generation JIT. Anyone who only supplies German or European OEMs and does not have to deal with RAN numbers, delivery orders or JIS processes can handle their processes as usual using delivery call-offs. If you want to know whether NJIT is the right solution for you, you can find more information here.

Those who actively tackle the challenges of the changeover can benefit from the many advantages of the new system in the long term: greater efficiency, flexibility and transparency in the JIT processes. The switch to SAP S/4HANA and NJIT is therefore not only a necessity, but also an opportunity to position yourself for the future in the highly competitive automotive supplier market.