SAP Goes the Distance With EV Fleet Digitalization

Rhea-AI Summary

Mercedes-Benz and SAP partnership revolutionizes corporate fleet management with digitalized omnichannel experience. SAP Commerce Cloud supports Mercedes-Benz's shift to 100% digital B2B sales by 2025. Benefits include streamlined EV ordering, automated approval processes, and data-driven fleet management. Sustainable business practices focus on CO2 emissions tracking, range anxiety solutions, and EV charging infrastructure. Both companies aim for carbon neutrality by 2030. Omnichannel strategy enhances customer experience and loyalty. The partnership signifies a shift towards direct sales, digital services, and new revenue streams in the automotive industry.

Market Research Analyst

The integration of SAP's technology into Mercedes-Benz's fleet management represents a significant step in the digital transformation of corporate fleet operations. This strategic partnership highlights the growing trend of digitalization and the shift towards electric vehicles (EVs) in the automotive industry, which is likely to influence the competitive landscape and consumer expectations.

From a market research perspective, Mercedes-Benz's commitment to selling 25% of all new cars online by 2025 could disrupt traditional car sales channels, potentially impacting dealerships and altering supply chain dynamics. The adoption of SAP Commerce Cloud to standardize offerings could streamline operations and enhance customer experience, which may translate into increased market share and customer loyalty.

The focus on sustainability, with both companies aiming for carbon neutrality, aligns with consumer and regulatory trends, potentially improving brand image and attracting environmentally conscious consumers. This could lead to increased sales and a stronger market position against competitors slower to adopt green initiatives.

Financial Analyst

The financial implications of the partnership between SAP and Mercedes-Benz are multifaceted. For SAP, the use of its own technology to manage a digitalized fleet could result in cost savings through improved efficiency and reduced time-to-market. The automated tracking of EV data and CO2 emissions supports SAP's sustainability goals, which may have positive implications for investor relations and corporate valuation, as ESG (Environmental, Social and Governance) factors become increasingly important in investment decisions.

Mercedes-Benz's investment in charging infrastructure and its commitment to a digital sales model may require significant capital expenditure. However, if successful, it could lead to long-term cost savings and open up new revenue streams from digital services. The financial health of both companies could be bolstered by the operational efficiencies and potential for increased sales volume driven by the digital and sustainability initiatives.

Sustainability Expert

The partnership's emphasis on sustainability is noteworthy. Mercedes-Benz's goal to become carbon neutral by 2038 and transition to 100% electric vehicles by 2030, along with SAP's commitment to an all-EV fleet by 2025, demonstrates corporate responsibility towards reducing carbon emissions. This move not only aligns with global sustainability goals but also reflects an understanding of the role of corporate fleets in achieving these targets.

The use of digital twins to track CO2 emissions and energy usage is an innovative approach that could set a new standard in sustainable fleet management. This data-driven strategy enables more accurate reporting and better decision-making to minimize environmental impact. The creation of an integrated charging infrastructure ecosystem could serve as a model for other corporations, potentially influencing broader industry practices and contributing to the acceleration of EV adoption.

Feature by Susan Galer

NORTHAMPTON, MA / ACCESSWIRE / February 16, 2024 / Electric vehicles (EVs) are transforming the mobility experience in corporate fleet management. A great example is the partnership between Mercedes-Benz and SAP where the companies are both customers and vendors to each other. Mercedes-Benz is using SAP solutions to digitalize its omnichannel buying experience, and SAP is the first customer using its own technology to manage the company's vehicle fleet in Germany.

As longtime partners, SAP and Mercedes-Benz have a history of shared knowledge for mutual competitive advantage. The fleet management program is grounded in the companies' similar business philosophies and product road maps.

Mercedes-Benz has committed to move the company's B2B business to 100% digital and plans to sell 25% of all new cars online by 2025. The company selected SAP Commerce Cloud to help support this mission. It will create a future-proof composable commerce portfolio designed to reliably power the company's digital strategy, including a standardized offering across different markets. It will also simplify processes and reduce time-to-market.

Benefits of Digitalized Fleet Management

From the SAP employee's perspective, ordering a company EV couldn't be simpler. Instead of time-consuming manual research and back and forth communication with the car dealer, employees can use the guided buying capability in SAP Ariba solutions to order the EV they want directly from the Mercedes-Benz online catalog. They can choose the features they want, such as car make and model, color, and equipment packages, within SAP's pre-set guidelines.

"The car configurator automates the EV selection process end-to-end, eliminating manual steps and saving time while providing the employee with a highly personalized experience," said Steffen Krautwasser, head of SAP's global car fleet. "Automating the approval process assures data consistency and eliminates the need for manual quality checks."

There's a tremendous convenience factor in captured EV data as well. In one pilot program for select EVs in SAP's fleet, the digital twin will automatically track mileage. Drivers will no longer need to manually enter mileage every time they recharge, and SAP can use this data to better manage the fleet.

Connected Data Drives Sustainable Business

Once ordered, EVs are tracked as assets in SAP's financial system. After delivery, SAP Digital Vehicle Suite creates a digital twin that can capture relevant, secure data across the EV's lifetime. SAP's fleet management team can track CO2 emissions based on green energy usage, mileage, and the number of vehicles on the road. Krautwasser envisioned reporting this data to support the company's global sustainability commitments.

"Performance data from the EV digital twin can help corporate fleet managers guide employees in choosing the best vehicle for their driving needs," said Krautwasser. "Over time, drivers can better understand travel ranges between charges." Data is expected to help address so-called range anxiety, alerting EV drivers when their vehicle needs a charge and, most important, where to recharge. Mercedes-Benz is investing in charging infrastructure to create an ecosystem that would be integrated with public and private charge point providers in the U.S., China, and Europe.

The partnership also reflects a shared commitment to sustainability. Mercedes-Benz has committed to become carbon neutral by 2038, and transition to 100% electric vehicles by 2030 wherever possible. SAP is transitioning the company's vehicle fleet for employees in Germany to all EVs by 2025 as part of its corporate commitment to be carbon neutral by 2030.

Omnichannel Is Fastest Path to Customer Love

The digital experience is extremely important for customers who expect convenience and quality. Organizations in many industries have shifted to an omnichannel strategy that offers people their preferred experience, whether online or in-person, building brand loyalty and repeat business.

"We want to provide a seamless journey for employees as they research, select, purchase, and enjoy their vehicle," said Krautwasser. "The most exciting part of our EV fleet management strategy is how we can use our knowledge to enhance the employee experience. Through data and digital services, we can get closer to our employees and act quickly based on their feedback, making improvements and introducing new offerings that keep us on top of trends and support SAP's sustainability commitment."

EVs represent a profound business model shift for the entire automotive supply chain as automakers sell direct to customers, provide digital services from vehicle data, and explore new revenue opportunities. It's clear that Mercedes-Benz and SAP are going the distance for a sustainable and satisfying driving experience.

Susan Galer is a communications director at SAP. Follow her @smgaler.

Photo courtesy of SAP employee Jude Calvin Parong.

View additional multimedia and more ESG storytelling from SAP on 3blmedia.com.

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SOURCE: SAP

View the original press release on accesswire.com

FAQ

How is Mercedes-Benz transforming corporate fleet management with SAP?

Mercedes-Benz and SAP are partnering to digitalize fleet management, offering a seamless omnichannel experience.

What technology is Mercedes-Benz using to support its shift to 100% digital B2B sales by 2025?

Mercedes-Benz selected SAP Commerce Cloud to power its future-proof composable commerce portfolio.

How does SAP simplify the process of ordering company EVs for employees?

SAP Ariba solutions provide guided buying capabilities for employees to order EVs directly from Mercedes-Benz's online catalog.

What benefits does the automated approval process in SAP's fleet management offer?

Automating the approval process ensures data consistency, eliminates manual quality checks, and saves time.

How does SAP track CO2 emissions and manage EV data?

SAP tracks CO2 emissions based on green energy usage, mileage, and the number of vehicles on the road using the Digital Vehicle Suite.

What is the sustainability commitment of Mercedes-Benz and SAP regarding EVs?

Mercedes-Benz aims to be carbon neutral by 2038 and transition to 100% electric vehicles by 2030. SAP is transitioning its vehicle fleet to all EVs by 2025 and aims for carbon neutrality by 2030.

How does the partnership between Mercedes-Benz and SAP enhance the customer experience?

The partnership focuses on providing a seamless journey for employees in researching, selecting, purchasing, and enjoying their vehicles, enhancing brand loyalty and repeat business.

What business model shift do EVs represent for the automotive industry?

EVs signify a shift towards direct sales to customers, digital services from vehicle data, and exploration of new revenue opportunities in the automotive supply chain.