Focus on digitalization: BMW Group strengthens production logistics and financial processes with modern SAP architecture

Munich. With the introduction of pioneering SAP applications, the BMW Group is making significant progress in digitalization. The successful projects in production logistics and finance mark important milestones in the Group-wide rollout of a new, cloud-based IT architecture. Developed as greenfield projects, these solutions were created from scratch and are now being gradually rolled out worldwide.

"With the next stage of digitalization in production logistics and finance – enabled by consistent, unified data structures and standard process templates – we have significantly advanced the AI enablement of the BMW Group," explains Alexander Buresch, CIO and Senior Vice President of BMW Group IT. "As part of our partnership with SAP, we have transferred key corporate processes to a service-oriented, cloud-based platform, achieving a new level of efficiency, quality, and automation."

Global Digitalization of Production Logistics

So far, in addition to the MINI plant in Oxford, the high-volume plant in Regensburg has been successfully converted to digital production logistics. By the end of the year, the Munich headquarters and the new plant in Debrecen, Hungary, will follow. The latter will begin producing the fully electric BMW iX3 – the first model of the Neue Klasse – by year-end.

The so-called “Parts Process Chain” enables digital control of all in-house produced components and parts sourced from external suppliers, and is being gradually introduced at all production sites worldwide as part of the BMW iFactory. Optimized collaboration with suppliers, as well as efficient storage and provision, ensures stable operations and flexible control of the entire production process.

"The global digitalization of our production logistics significantly increases transparency and standardization, allowing us to respond more quickly to changes in demand or supply shortages," explains Michael Nikolaides, Head of Production Network and Logistics at the BMW Group. "In addition to vehicle plants, we will also integrate new assembly sites for sixth-generation high-voltage batteries to support the stable ramp-up of electromobility."

New Financial Solution Improves Data Transparency and Process Efficiency

The financial system "Group Finance BackBone" (GFBB) features a completely new data model that standardizes previously heterogeneously structured financial information. This leads to improved data comparability and higher granularity, enabling detailed analyses and real-time business management. "We call it ‘data at your fingertips,’ as time-consuming manual evaluations and complex reconciliations are now a thing of the past," explains Jonathan Townend, Head of Group Reporting and Taxes at the BMW Group.

Moreover, GFBB ensures comprehensive standardization and harmonization of financial processes across the Group. It takes into account both central and local requirements and significantly increases the degree of automation in finance. For the organization, this means easier cross-functional collaboration and a notable reduction in complexity. Following the successful go-live of BMW AG, BMW Bank, and the production plants in Oxford and Debrecen, the global rollout of GFBB is now continuing step by step.

Strategic Partnership with SAP

As part of the “RISE with SAP” initiative, the BMW Group launched a comprehensive transformation process back in 2023. The goal is to migrate existing SAP systems to a modern, cloud-based architecture that also facilitates greater use of AI. The intelligent combination of SAP standards and BMW Cloud Services ensures rapid integration of innovations, maximum flexibility, and global scalability. Additionally, the BMW Group is actively involved in the further development of the SAP S/4HANA standard and drives it forward through co-innovation efforts.