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Skoda Makes Clever Production Changes

We love Skoda cars, but what makes them? Skoda has been manufacturing for decades and continues to evolve its processes. In huge industry news, Skoda will be introducing state-of-the-art operations which will brings savings and better logistics.

The transformation of its logistics processes is called Project ONE Log. Representing the largest system changeover in the Vrchlabí plant over the past quarter-century, this Group-wide initiative is set to redefine the automotive manufacturing with the adoption of state-of-the-art SAP solutions.

The roll-out will have positive knock on implications across the entire Skoda network, including here at Eastside Skoda, one of Melbourne’s leading Skoda dealerships.

The Drive Toward Standardisation

Under Project ONE Log, Skoda is streamlining its logistics operations by replacing a myriad of existing systems with a standardised SAP solution.

David Strnad, Head of Brand Logistics at Skoda, emphasises the need for this transformation, stating, “Until now, we have been launching and using a wide range of applications developed over time in response to operational needs and gradually interconnected. That has resulted in a large number of systems and interfaces, and not only within our Company. An ecosystem such as this is highly complex and accordingly difficult to maintain. With ONE Log in place, we now have a uniform, standardised and harmonised system that forms a solid foundation for our logistics management while also saving costs and increasing both flexibility and efficiency across the entire logistics chain.”

SAP S/4 HANA: A Futuristic Foundation

The shift involves adopting the SAP S/4 HANA platform, a robust replacement for legacy systems in logistics. This platform provides a future-oriented, stable, and comprehensive base for Skoda to build on, aligning seamlessly with its broader digitisation strategy.

ONE Log doesn't just impact Skoda; it extends its reach across the entire Volkswagen Group. By standardising logistics processes within individual Group brands, the initiative aims to reduce the number of interfaces in logistics IT, increase data availability, and achieve higher efficiency in production.

As part of the project, employees from Volkswagen Passenger Cars, Volkswagen Commercial Vehicles, Audi, and Skoda Auto collaborate under the leadership of Volkswagen Group Logistics. The implementation of this multi-brand project kicked off in early 2023.

Skoda’s Vrchlabí Plant Takes the Lead

The first wave of implementation, marked by the introduction of the minimum viable product (MVP), has already taken place at the Vrchlabí plant. This plant, Skoda’s testing ground for this groundbreaking technology, focuses on automatic transmission assembly line planning, including stock level monitoring. The primary goal is to enhance the efficiency of material procurement and stock level monitoring processes.

As the project unfolds, the expected outcomes include not only increased flexibility and efficiency but also significant cost savings, transparent data, and the opportunity to leverage the latest business intelligence tools for comprehensive data analyses across the entire supply chain.