Preh, a subsidiary of Joyson Electronics in Ningbo, China, is a manufacturer of high-quality automotive electronics systems. With more than 100 years of experience in the electronics industry and over 40 years in the automotive sector, the Germany-based company has the perfect combination of access to growth markets, deep technical know-how, and cost efficiency.
Preh is a global growth company with five sales locations, six production plants, and a strong market position in the automotive market for human-machine interface and e-mobility systems.
With constant company growth and ever-changing market requirements, the product lifecycle costing at Preh had reached its limits. “We are on the way to becoming a €2 billion company and doing product costing without the support of a fully integrated data processing system,” says Harald Bayer, department head of Project Calculation at Preh Group. “For our management, it was time to give the calculation of all our new products a new basis.”
The company knew it needed a single source of truth for all product cost information that would also enable analysis and support reporting.
Introducing a Future-Proof Standard Solution
“We looked at several software solutions on the market and our choice was SAP Product Lifecycle Costing. As we are trusting on the strength of SAP, this was a decision for the future,” Bayer says. “An SAP standard solution is a better fit with our system landscape.”
According to Bayer, key objectives for the project were:
- Replace former processes with a standardized process across the company
- Improve quality and accuracy for product costing along the product lifecycle
- Increase cost transparency for reporting and analysis to easily identify cost drivers
- Increase speed and flexibility in the product costing process and the efficiency of the entire organization
SAP Product Lifecycle Costing helps companies gain visibility across teams, calculate and proactively manage costs, and support new product innovations and customer-specific engineered products.
