One of the Biggest Transformation Programs in Chinese Auto Industry

| Client story

“Navigator Project” – the largest SAP implementation
ever in China – is helping automaker DFL establish a
management information platform for improved efficiency

 “An SAP implementation across such a large business span, within such a short
period of time is rare in China as well as in the world. Its success will undoubtedly
be written into the DFL history.”

Mr. Atsushi Komatsu, Vice President - Finance and IT, Dongfeng Motor Co., Ltd.

The Situation

Dongfeng Motor Co., Ltd. (DFL) was established in June 2003 through joint investments
from Dongfeng Motor Corporation and Nissan Motor Co., Ltd. DFL is one of the largest
car manufacturers in the People’s Republic of China.

The company had set goals to double its sales and revenues over a four-year period,
increase its operating profit and make the most of its joint venture partnership.
To achieve these objectives, DFL felt the need to transform and streamline its
business operations.

The Solution

The “Navigator Project” was developed to help DFL establish a management information
platform that could obtain timely, consistent, accurate and transparent information.

The program, implemented with the help of Capgemini, consisted of a number of
streams, including Policies and Procedures, Organization Alignment, Close Cycle
Reduction and a large-scale SAP implementation.

 

“The SAP system was successfully implemented in the commercial vehicle companies
and the passenger vehicle companies. Such a big transformation completed within
such a short period of time is a significant achievement.”

Mr. Katsumi Nakamura, CEO, Dongfeng Motor Co., Ltd.

 

The Result

The successful implementation of the Navigator Project, with SAP as the core,
is an important milestone in the implementation of fundamental management improvements
and company transformation at DFL. Along with QCD (Quality Cost Delivery), KPI
(Key Performance Index), CMS (Cash Management System) and CFT (Cross Function
Team), the program has been established as the “Dongfeng management methodology”
and has:

  • Upgraded the mindset and behavior of staff.
  • Improved and standardized business and operational processes.
  • Enhanced basic data maintenance management.
  • Established a consistent business operations platform for 12 plants and eight
    departments.
  • Significantly changed and improved the corporate culture.

 

“Through the implementation of this world-class enterprise management software,
DFL will be able to obtain timely, accurate and transparent information. More
importantly, it promoted positive changes to the mindset and behavior of our 70,000
staff and further improved management in the entire DFL operation.”

Mr. Qiao Yang, Senior General Manager -Finance and Accounting, Dongfeng Motor
Co., Ltd.