Digitisation in focus: Škoda Auto launches the largest logistics system changeover in its Vrchlabí plant over the past 25 years

› Škoda is transforming its logistics processes to state-of-the-art SAP solutions
› Project ONE Log standardises logistics processes throughout the Volkswagen Group
› Increased flexibility and reduced costs through digitisation and centralisation
› The system launch in Vrchlabí was the first in the Group outside of Germany

Vrchlabí, 18 December 2023 – Škoda Auto is transforming its logistics processes to a uniform system under a Group-wide project called Project ONE Log. A new, standardised SAP solution will replace a large variety of existing systems. The Company thus consistently uses digitisation and centralisation to leverage potential for cost savings and increased flexibility in production & logistics. The project is the largest system changeover at the Vrchlabí plant over the last 25 years.

“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.”

David Strnad, Head of Brand Logistics at Škoda Auto

“The SAP S/4 HANA platform is a well-suited replacement for our currently deployed legacy systems in logistics. It gives us a future-oriented, stable and comprehensive base to build on and to serve our digitisation strategy. Implementing a new IT solution in a running business is always a challenge, and that is why it is a very strong message that we are able to cope with such complex projects in which all stakeholders and project members have to closely cooperate and work towards accomplishing set goals. A big thanks to all who have made this possible.”

Alexander Eisl, Head of IT at Škoda Auto

More efficiency through Group-wide harmonisation
ONE Log streamlines logistics processes within individual Group brands as well as across the entire Volkswagen Group. Merging existing sub-processes into a standardised, state-of-the-art SAP solution reduces the number of interfaces in logistics IT while also increasing the availability of data. Expected outcomes include increased flexibility and thus higher efficiency in production, significant cost savings, as well as consistent and transparent data. Furthermore, ONE Log also offers the opportunity to utilise the latest business intelligence tools for full-fledged data analyses across the entire supply chain.

As part of the project, employees (primarily) in logistics and IT departments at the participating brands, i.e. Volkswagen Passenger Cars, Volkswagen Commercial Vehicles, Audi and Škoda Auto, work closely together under the management of Volkswagen Group Logistics. The implementation of this multi-brand project started in early 2023.

Largest system change in Vrchlabí over the last 25 years
Škoda Auto has recently introduced the minimum viable product (MVP) for ONE Log as the “first wave” at its plant in Vrchlabí, and the other Czech sites will gradually follow suit. The main focus of this first version is on automatic gearbox assembly line planning, including stock level monitoring, and therefore on increasing the efficiency of material procurement and stock level monitoring processes. Mechanical machining is one of the areas of system-relevant expertise to be planned in the future.