From carbon footprint to conscious choices: 10 reasons sustainability is steering the future of automotive

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The automotive landscape is at a crossroads, where sustainability is no longer a mere option but an imperative. Environmental concerns, shifting consumer preferences, regulatory mandates, and the need for resource conservation are driving the industry’s transformation towards more sustainable practices. 

One report estimated that the 86 million cars that were sold in just one year (2018) accounted for 9% of global greenhouse gas emissions. 

Businesses that proactively integrate sustainability into their operations are better poised to navigate the challenges of the future, satisfy consumer demands, meet regulatory requirements, and contribute to a healthier planet. 

10 reasons sustainability is changing the automotive landscape 

From carbon footprint to conscious choices: 10 reasons sustainability is steering the future of automotive

Environmental responsibility: The automotive industry is a significant contributor to global carbon emissions, air pollution, and resource depletion. Embracing sustainability is vital to mitigate these impacts and preserve the planet. By reducing carbon emissions, improving fuel efficiency, and adopting cleaner manufacturing processes, automotive businesses can play a pivotal role in addressing climate change and environmental degradation. 

Regulatory compliance: Governments worldwide are enacting stricter environmental regulations to curb pollution and promote sustainability. Non-compliance can result in hefty fines, legal challenges, and reputational damage. Embracing sustainable practices ensures that automotive businesses stay ahead of regulatory changes and demonstrate a commitment to responsible operations. 

Consumer demand: Modern consumers are increasingly conscious of the environmental impact of their purchases. They seek eco-friendly alternatives and are more likely to support businesses that prioritize sustainability. Automotive businesses that offer electric vehicles, hybrids, and other fuel-efficient options are well-positioned to capture this growing market segment and build brand loyalty. 

Resource efficiency: Sustainable manufacturing processes optimize resource usage. Efficient energy management, waste reduction, and recycling initiatives not only minimize the industry’s ecological footprint but also lead to cost savings. Energy-efficient production methods, such as lean manufacturing and recycling materials, contribute to improved operational efficiency and reduced expenses. 

Innovation and differentiation: Pursuing sustainability often spurs innovation. Businesses that invest in research and development of greener technologies, such as electric or hydrogen fuel cell vehicles, stand out as pioneers in a competitive market. Such innovation can lead to differentiation, attracting environmentally conscious customers and enhancing market share. 

Long-term resilience: As global concerns about resource scarcity and energy availability increase, automotive businesses need to prepare for the long term. Sustainable practices, such as reducing reliance on fossil fuels and optimizing energy consumption, ensure resilience in the face of potential resource constraints and market volatility. 

Supply chain stability: Sustainable practices extend beyond a company’s operations to its supply chain. Businesses are increasingly evaluating the environmental impact of their suppliers and demanding sustainable practices throughout the value chain. This not only ensures ethical sourcing but also enhances supply chain resilience against disruptions caused by climate-related events. 

Investor confidence: Investors are recognizing the financial risks associated with environmental and social issues. Companies that prioritize sustainability are more likely to attract socially responsible investors who seek to align their investments with their values. Demonstrating a commitment to sustainability enhances investor trust and can lead to increased financial support. 

Employee engagement: Employees are drawn to companies that demonstrate a commitment to social and environmental responsibility. A workplace that values sustainability fosters a sense of purpose among employees, leading to increased engagement, productivity, and job satisfaction. Businesses that promote sustainability can attract and retain top talent. 

Future-proofing: The automotive industry is undergoing a transformative shift with the rise of electric vehicles, autonomous driving, and mobility-as-a-service. Embracing sustainability positions automotive businesses to adapt and thrive in this changing landscape. Companies that proactively invest in sustainable technologies and practices are better equipped to remain relevant and competitive as the industry evolves. 

Achieve sustainability goals with A365 

A365, built on Annata’s vast industry expertise on top of the foundation of Microsoft Dynamics 365 and other technologies within the Microsoft ecosystem, offers a comprehensive solution that empowers automotive businesses to enact sustainable practices. 

By seamlessly integrating data-driven insights, AI, and analytics, A365 enables these businesses to optimize cleaner business practices and drive innovation aligned with environmentally friendly goals. This robust platform not only aids in reducing environmental impact but also positions automotive businesses as frontrunners in sustainable practices within the industry. 

From carbon footprint to conscious choices- 10 reasons sustainability is steering the future of automotive 3

Efficient resource management: A365’s advanced analytics and data-driven insights enable automotive businesses to optimize their resource usage. By analyzing production processes, supply chain operations, and energy consumption patterns, businesses can identify areas of inefficiency and implement strategies to minimize waste, conserve resources, and reduce environmental impact. 

Lifecycle analysis: A365 empowers automotive businesses to conduct comprehensive lifecycle assessments of their vehicles. This involves evaluating the environmental impact of materials, production processes, operational phase, and end-of-life considerations. By gaining insights into the entire product lifecycle, businesses can make informed decisions to design, manufacture, and manage vehicles in a more sustainable manner. 

Electrification and alternative fuels transition: A365 supports automotive businesses in the transition to electric and hybrid vehicles. The platform offers tools for managing electric vehicle fleets, monitoring charging infrastructure, and ensuring optimal battery health. This aids in reducing greenhouse gas emissions and promoting the adoption of cleaner transportation alternatives, thereby contributing to a greener future. 

Supplier collaboration: A365 fosters collaboration between automotive businesses and their suppliers to promote sustainability throughout the supply chain. The platform facilitates communication, transparency, and compliance tracking, ensuring that suppliers adhere to environmental standards and ethical practices. This results in responsible sourcing and the reduction of negative environmental impacts from raw material extraction to component manufacturing. 

Circular economy practices: A365 supports circular economy principles by managing the lifecycle of vehicle components. Automotive businesses can track the recycling, refurbishing, and repurposing of parts, reducing waste and conserving valuable resources. By embracing circular economy practices, businesses contribute to a more sustainable and resource-efficient industry. 

Eco-friendly manufacturing: Through data analytics and process optimization, A365 assists automotive businesses in adopting eco-friendly manufacturing practices. By analyzing production data, energy consumption, and waste generation, businesses can identify opportunities for improvement. This might include energy-efficient technologies, lean manufacturing principles, and reduced emissions, resulting in a greener production process. 

Green logistics and fleet management: A365 optimizes logistics and fleet management for reduced environmental impact. Businesses can use the platform to optimize transportation routes, monitor vehicle performance, and schedule maintenance effectively. This minimizes fuel consumption, lowers emissions, and enhances operational efficiency, contributing to sustainable transportation practices. 

Carbon footprint tracking: A365’s robust data analytics capabilities allow automotive businesses to track and measure their carbon footprint throughout the value chain. This comprehensive tracking supports accurate reporting, progress assessment, and transparency in sustainability efforts. By quantifying their carbon emissions, businesses can set targets, implement strategies for reduction, and report their environmental progress to stakeholders. 

Regulatory compliance: A365 ensures automotive businesses remain compliant with evolving environmental regulations. The platform automates compliance processes, tracks regulatory changes, and generates alerts for businesses to take appropriate actions. Staying compliant not only avoids penalties but also demonstrates the business’s commitment to responsible operations. 

Innovation and research: A365’s integration with advanced technologies, such as artificial intelligence and data analytics, drives innovation in sustainability. By harnessing insights from data, businesses can develop new technologies, materials, and products that align with environmentally friendly goals. This promotes a culture of continuous improvement and positions automotive businesses as leaders in sustainable innovation. 

Dive deeper into how our cutting-edge solution, powered by advanced analytics and insights, can revolutionize your business’s approach to sustainability. Download our comprehensive factsheet today and explore how A365 Analytics can drive efficiency, innovation, and eco-friendly practices across every facet of your automotive operations. 

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Hydrogen-powered commercial vehicle purveyors selects Annata to fulfill global scale ambitions

North America
Manufacturer

In 2020, Annata was chosen by a heavy truck manufacturer to assist in developing their business processes and the systems required to support them. The company has more than 400 employees to support its rapid growth as a leading automotive innovator in zero-emission vehicles and trucks.

After a rapid and intensive validation cycle, Annata was chosen because of Annata’s 20-year automotive industry experience and extensions to the Microsoft Dynamics platform that formed the basis of the manufacturer’s finance and manufacturing systems.

Designed with cloud scalability and agility built in, the solution covered all critical processes. To ensure a complete and compelling customer experience, Annata’s solution will ensure the organization is well connected to customer behaviors, both pre-and post-sale for years to come.

The company decided to engage in a multi-year partnership with Annata after the success of the solution implementation. Annata provided the manufacturer with industry insights and experience to drive more value in all its business processes.

Annata picked for superior material handling performance by Leading North American equipment dealer

North America
Dealer

A prominent material handling equipment dealer, with a network spanning over 60 locations across North America, is committed to delivering a comprehensive range of services, including new and used equipment, rentals, parts, service solutions, and training, with a strong emphasis on exceptional customer service.

The collaboration between Annata and Microsoft that led to the successful partnership with the customer was built on a foundation of team expertise and trust, ensuring a strong working relationship.

In their initiative to replace the current system, the company aspired to migrate to a modern, Azure cloud-based platform to optimize their Microsoft Dynamics investment. The primary goals included achieving business transformation, ensuring scalability, and eliminating system performance constraints.

The decision to upgrade to Dynamics 365 stemmed from challenges such as instability, poor performance, and growth limitations experienced in their previous solution installation. 

The overarching objective was to address these issues and enhance the overall efficiency and stability of their operational environment. Annata’s offering stood out with its comprehensive equipment lifecycle functionality, addressing the customer’s specific needs in a tailored manner. System performance and adherence to Independent Software Vendor (ISV) compliance were pivotal aspects that contributed to the decision, assuring the customer of a robust and reliable solution.

Annata’s commitment to ongoing development, reflected in their ecosystem investment and roadmap, aligned well with the customer’s long-term goals. Microsoft’s Proof of Concept (POC) support played a crucial role in demonstrating the capabilities of the proposed Dynamics 365 solution.

The success of the partnership was further cemented by the strong collaboration and partnership ethos shared between Annata and Microsoft, ensuring a holistic and effective approach to meeting the customer’s requirement.

Automotive powerhouse selects A365 for next-level business optimization

North America
Distributor

A privately-owned enterprise with a significant presence in the automotive industry, operates as a key distributor for a globally recognized automotive brand. As the largest independent distributor for this brand on a global scale, the division serves a network over 150 independent dealerships.

Previously relying on an outdated “Green Screen” system and managing a complex network of around 200 applications, the company recognized the need for a transformative change. The existing system, developed over 25 years, had become inadequate for evolving dealer needs, leading to technical debt rather than delivering value. To address this, the enterprise sought a modern solution to meet the dynamic requirements of the automotive industry and enhance overall operational efficiency. The Microsoft Dynamics 365 and A365 combination were selected to improve forecasting, streamline vehicle ordering processes, and reduce lead times from inspection to final delivery.

The enterprise now leverages the full A365 platform, including warranty management and rental services, to optimize its operations. The pivotal factor in selecting this solution was the ability to offer a platform tailored to the automotive industry, providing comprehensive visibility, management, and controls throughout the entire vehicle lifecycle. This capability formed the cornerstone of a compelling value narrative, resonating strongly with a diverse group of stakeholders.

The decision to choose Microsoft Dynamics and A365 exemplified a strategic approach, wherein technology was prioritized first, aligning subsequently with the market for a systems integrator. This decision underscored the strategic fit of the chosen technology to the specific needs of the enterprise, setting the stage for a successful implementation and business transformation.

Key automotive importer and dealer adopts A365 for comprehensive operational enhancement

Latin America
Importer and dealer

Founded in 1963 in Latin America, this key player in the local automotive industry has solidified its standing among the top groups in the sector. Over six decades, the company has maintained consistent growth, establishing a robust financial foundation.

Central to their success is a commitment to transparent management, enabling them to overcome challenges. The company prioritizes key strategic pillars, including business sustainability, delivering exceptional customer experiences, nurturing a skilled workforce, embracing technology, and forming strategic alliances. These pillars reflect the company’s comprehensive approach to ensuring long-term success and resilience in the dynamic automotive industry.

To enhance their operations, the company opted for Dynamics 365 Finance & Operations combined with A365 and Dynamics 365 Customer Engagement combined with A365. In the evaluation process, various global and regional players were considered, with the chosen combination ultimately selected based on key factors.

The decision to choose this particular combination was influenced by factors such as embracing new technologies for future growth, an abundance of experienced consultants for technology implementation, a holistic solution with cloud hosting and flexible services, and an excellent cost-benefit Total Cost of Ownership (TCO) ratio.

Additionally, the choice of Annata was motivated by their extensive expertise in the automotive sector, a strong market presence, a robust research and development (R&D) plan, and certification capabilities with a cost-effective Total Cost of Ownership (TCO).

This combination of solutions was deemed the optimal choice, aligning with the organization’s strategic goals and ensuring a comprehensive and effective solution for their business needs.

European vehicle manufacturer unlocks competitive edge with Annata

Europe
Manufacturer

The European automotive manufacturer was increasingly challenged with their internal reliance on their existing systems as they felt that they were losing a competitive edge by not having the ability to benchmark functionality, performance, and cost. 
To address this, they started to investigate adding D365 as a second practice. They, however, soon found a need to bring in the Annata extended solution to fully understand the capabilities of the underlying D365 platform with the vertical extension for their specific business. 

Through the roll-out, the manufacturer was able to move from local, siloed solutions to a common enterprise standard solution which drives down costs, mitigates risks, and improves the customer experience with a consequential uptick in sales. 
In essence, the customer views the solution as providing the systems that run their captive fleet dealers in-country, as well as providing the integration from captive and non-captive dealers into the central solution.

Annata expands Dynamics solution for South African arm of major importer and distributor

South Africa
Distributor

A South African arm of a major importer and distributor of cars and spare parts was looking to expand the use of the solution into Dynamics 365 Sales. A365 Sales was selected as the preferred industry solution.

The reputation of Annata working with the Microsoft team in South Africa helped to land the deal. The underlying Common Data Model for Automotive was also an important factor in the decision.

The expansion of the use of Dynamics CE for sales was already planned but the business felt that the Annata Sales app would provide ‘out of the box’ functionality and save them a considerable amount of time and effort. The business estimated that implementing the Annata Sales app would save them up to 3 years compared with developing the functionality themselves.

The Annata Sales app provides functionality to handle vehicle configuration, and sales quotations including financing options, trade-ins, test drives, etc.

The Annata Sales app will hopefully be the first of several products that the business will implement. This includes D365 F&O; A365 for Dealer management; Customer service; Annata Dealer portal and; Annata Field Service. The 5-week implementation of the Annata Sales app was another compelling factor.

Japanese multinational automotive manufacturer arm selects Annata to replace existing vehicle division systems

Northwestern Europe
Importer

A division of a Japanese multinational automotive manufacturer serving developing markets chose Dynamics 365 + A365 to replace all their current systems for their vehicle division across Africa and selected countries in Latam and Asia. 

The implementation was complex as it involved replacing three heavily customized, on-premise solutions with a standard, (based on a global template), cloud-based offering. The complexity was further increased as the connectivity in some African countries can be intermittent, and delivering a project across many countries requires a great deal of experience and planning.

The solution implemented covered importation, dealerships, aftersales, and service, in addition to rental and fleet in specific markets. The device types cover all vehicles; from motorbikes to cars, lorries, tractors, construction machinery, etc. – and in some markets even boats.

D365 + A365 provided the manufacturer with the confidence that  existing processes would all be supported and that moving to the Azure cloud would drive additional benefits.

Annata brings agility to a Chinese electric vehicle manufacturer

East Asia
Manufacturer

The North American arm of a Chinese electric vehicle (EV) manufacturer, with a 450,000-square-foot bus manufacturing and forklift assembly facility, required an agile solution to manage its supply chain, assembly, dealer orders, and post-sales processes for parts, warranty, and dealer management.   

The existing solution was unable to support these business processes cost-effectively with the same flexibility and agility. Annata’s automotive original equipment manufacturer (OEM) experience and track record of successful and agile implementations, particularly in the U.S. market were key to winning against other competitors.  

Key decision makers of the manufacturer were primarily of Chinese descent, with some residing in corporate offices in China. Working with Microsoft China, Annata was able to leverage its insight into Chinese business culture and its relationships with the business’s corporate IT.

Annata’s ability to adjust to an unconventional sales process and accommodation for cultural differences, coupled with an implementation approach and agile solution that could grow with the North American arm, was key to winning the business. 

Swedish commercial vehicle manufacturer partners with Annata to drive the shift towards sustainable transporting

Scandinavia
Manufacturer

A Swedish trucking manufacturer selects Annata and Dynamics 365 to replace their current wholesale and dealer management systems around the globe. By adding A365 to the Dynamics solution, the company is provided with the comfort to cover almost all its operational processes and drive additional benefits by moving to a cloud-based system.

The company’s primary challenge was that it was dealing with large sets of homegrown solutions and legacy vertical solutions with a separate outdated dealer management system that did not communicate with each other. The current on-premise portfolio needed to be replaced with a standard, cloud-based solution, that covers imports, dealerships, aftersales, and service operations, in addition to its rental and fleet-based markets.

Annata, Microsoft, and the manufacturer worked together to build a golden template and blueprint to be used in future rollouts globally. The solution combination adds future capabilities and support for ML, AI, IoT, and more automated business executions, which will have a positive impact on the ROI.

The manufacturer has transformed its dealer management system, replacing its outdated solutions with Annata’s integrated, cloud-based solution using Microsoft’s infrastructure.

RV manufacturer streamlines business processes with Annata

North America
Manufacturer

Annata was chosen as a solutions provider to replace a 20-year-old heavily customized legacy system for an RV manufacturer. The systems in use were not supplying prompt information to the management team and model changes for production were painful to implement. 

The implementation was vital to simplify access to data and increase service levels to its different dealers. The manufacturer selected Annata due to Annata’s global ISV status and strong solution functionalities to manage their critical workload, particularly those that require interaction with their dealer channel.   

Annata’s robust dealer portal solution has improved dealer relationships with a quicker turnaround on warranty claim decisions and processing.

In parallel, the manufacturer can now leverage warranty rules and validations. The dealer portal is a win for the manufacturer in reducing warranty costs while improving dealer and customer relationships.

The manufacturer expects overall improved management reporting for executives and operations. Operational improvements include rationalized bills of materials, costing, and managing production change orders effectively. The manufacturer expects its dealers to have a more efficient process for warranty claims that will result in a reduced payment time, while still preventing fraudulent or duplicate claims.

Swiss agricultural equipment and machinery supplier accelerates cloud migration with Annata

Central Europe
Importer

As an existing customer of AX and Annata IDMS on-premise, the Swiss company decided to start its journey to the cloud in early 2020. Annata’s finance and operations solution was the core of the solution proposed to the company.  

Annata’s full suite of capabilities was implemented and included extensive device management functionalities that support the entire lifecycle of a machine encompassing imports, sales, and lifecycle management with service/work order management, warranty handling, parts management, and rental. 

In addition to a proven solution, Annata was the primary choice due to the strongly committed executive management team which is very much supportive of the strategic project goals.

The project enjoys a high focus at the executive management level and is supported by a strong change management approach aiming to avoid unnecessary customizations. 

The industry competence of the Annata implementation team was well equipped to mitigate challenges typically encountered when setting up new customer solutions in replace of their heavy customized “homegrown” solution.

Annata selected to digitally transform distribution channel of agricultural equipment manufacturer

Central Europe
Manufacturer

With a primary focus on excellent product quality and outstanding customer service, the equipment manufacturer made a company-wide decision to shift their business process to the cloud using Dynamics 365 and Annata’s Finance & Operations solution. 

The solution was rolled out to several major markets within Europe and the Americas in a span of 3-4 years, before offering the industry template to their independent dealer network. Annata was selected as the preferred industry solution partner to move their on-premise solution within their headquarters to the cloud within three months, utilizing its extensive industry and digital competencies in the Annata team. 

As soon as Annata engaged with the equipment manufacturer, it was clear to them that the industry IP was key to their goal to digitally transform their distribution channel.

Coupled with finance and operations implementation expertise, the equipment manufacturer was confident that D365 with Annata was the best to provide industry knowledge to help them make the right process choices and a full set of industry functionalities around the full lifecycle of their equipment.

Mexican subsidiary of an international motor company implements Annata solutions to modernize business processes

Southern North America
Manufacturer

A Mexican subsidiary of an international motor company was utilizing multiple and heavily customized legacy systems which were around 20 years old and did not improve the business. The financial reports generated caused many discrepancies in the business which dampened business decisions. 

The management was looking for an Integrated system that was consistent and easily manageable, in which all users from different departments could manage business processes in a co-dependent and competent manner.  

Annata’s extensive solution provided the Mexican subsidiary with a technology transformation through its transition to digitized workflows.

The new system enabled the company’s dealerships to seamlessly communicate and collaborate with suppliers and service partners, while the company focused on creating an integrated supply chain. 

With Annata’s unified solution, the company benefited from providing accurate, analytical data through the implementation of key functions in cost management, inventory management, warranty management, sales, and service departments. It also provided the company with a range of business data (in real-time) for analysis at a reduced time rate and this provided the organization with major improvements in its management reporting. 

Hydrogen-powered commercial vehicle purveyors selects Annata to fulfill global scale ambitions

North America
Manufacturer

In 2020, Annata was chosen by a heavy truck manufacturer to assist in developing their business processes and the systems required to support them. The company has more than 400 employees to support its rapid growth as a leading automotive innovator in zero-emission vehicles and trucks.

After a rapid and intensive validation cycle, Annata was chosen because of Annata’s 20-year automotive industry experience and extensions to the Microsoft Dynamics platform that formed the basis of the manufacturer’s finance and manufacturing systems.

Designed with cloud scalability and agility built in, the solution covered all critical processes. To ensure a complete and compelling customer experience, Annata’s solution will ensure the organization is well connected to customer behaviors, both pre-and post-sale for years to come.

The company decided to engage in a multi-year partnership with Annata after the success of the solution implementation. Annata provided the manufacturer with industry insights and experience to drive more value in all its business processes.

Forestry equipment global manufacturer selects Annata for company-wide digitization

Europe
Manufacturer

Operating in forestry markets of more than 40 different countries, the manufacturer had an IT landscape that was complex, fragmented, and varied greatly between countries. As part of their future-proofing efforts, they needed a platform to bolster them as they navigated into the future, providing them with the flexibility required to digitize their entire business. 

Annata’s complete set of industry functionalities around the lifecycle of heavy equipment, the strength of the application and platform, as well as in-depth knowledge and vast experience within the industry were reasons why Annata was selected to support them along their transformation journey. 

Annata also displayed strong awareness of future capabilities specific to the manufacturer’s needs aside from proving a strong partnership with Microsoft. 

Annata’s flexibility, scalability, and capabilities to take on the ever-changing environment in the forestry manufacturing industry have since enabled the manufacturer to maintain a competitive edge digitally.