Betting on the future

SCC and AHEAD – an acronym and an abbreviation making up a strong third pillar for the future. To be more precise: the Audi Hungaria Shared Competence Center and AUDI HUNGARIA AHEAD Kft. As part of a roundtable discussion with Andreas Kattendick and János Schäffer, the managing directors of AUDI HUNGARIA AHEAD Kft., and Szilárd Csepeli, director of SCC Governance, we took a look behind the scenes, as well as at a future full of international competence-based services.

What does this all mean, exactly? Something truly impressive. Logistical and production SAP operations for all of the European factories in the Volkswagen Group – 44 production sites in total; numerous IT services for the entire Group, available 24 hours a day, across the world; Purchase2Pay, an optimised  procurement process from orders to payment – the list of new services is endless…

AUDI: Audi Hungaria has 30 years of success behind it, and has also been involved in providing some of the Volkswagen Group’s international services for more than 15 years. Was this ‘virtual business’ created to unite these services?

János Schäffer: Our company has three decades of success in powertrain and vehicle production in its portfolio. We have also been providing services for a long time: more than 15 years – actually closer to 20 – covering all our business areas. At the same time, what we lacked previously was centralised control and a unified approach.

Andreas Kattendick: That’s right. Because of the increasingly competitive climate and also our ambitious plans, in 2021 the Shared Competence Center (SCC) was created under joint direction with Audi Hungaria. It handles all of our services that develop the competencies of our colleagues. Through our “From Győr to the world” strategy, we looked to become even more efficient and focused, and to maximise synergies in providing services for the Volkswagen Group.

AUDI: In the beginning, what areas helped form this virtual division, the Shared Competence Center (SCC)?

János: The portfolio was incredibly varied and wide-reaching from the start. In addition to two areas of  Technical Development – Drive and Vehicle Production – we also have Finance, Auditing, IT, and Procurement, as well as product-related areas such as Logistics and Technical Services. We have also added Legal Services, Quality Assurance and our Training Centre, so they now operate at an international level.

AUDI: The evolution has been continuous. Would you say that this shared virtual space suddenly became too small?

Andreas: You could say that. We outgrew the existing frameworks. With the creation of AUDI HUNGARIA  AHEAD Kft., we have founded a subsidiary that – with the competencies of our colleagues as its foundation – can provide services with superb added value, primarily for clients in the group. This means
we have achieved an excellent position within the Volkswagen Group both in terms of strategy and the future; a single place where we can create true added value.

János: Andreas said it perfectly. We needed a new company primarily to provide a stable structure and efficient workflows. In 2023, with employee representatives from Audi Hungaria, we were able to successfully prepare the foundation of a new business entity and create all the preconditions for successful work in the future. Thanks to an especially productive joint  project, we were able to overcome all of the initial difficulties and uncertainty. We owe a big thanks to everyone involved, whether they contributed to the final success from the employee or employer side.

AUDI: What does the new company’s portfolio consist of?

Andreas: Some services in the SCC portfolio that are not directly related to production, such as Procurement, IT and Financial Services, have been transferred to the new, 100%-owned subsidiary. Our clients primarily come from the Volkswagen Group’s sites, and we are able to offer them genuine added value. Since 2022, in addition to Audi, Volkswagen and Commercial Vehicles, our clients have also included Porsche, Lamborghini and Bentley, so we can definitely say we provide services for the whole group.

AUDI: All of this without any interruptions, while also managing a legal and economic transition….

János: It’s true that we had to focus and work together on every detail to ensure a problem-free start for the new subsidiary, and to complete the transfer of services and orders that were already in progress. We strived to ensure that the transition would be as seamless as possible both in terms of the work itself, and also for our colleagues. One issue that raised several difficulties was that our IT systems were still operating in Audi Hungaria’s virtual world on one day, yet on the very next day they had to ‘wake up’ in the world of Audi Hungaria Ahead and still function perfectly. To make this happen, in July we created a ‘hotline’ so we could migrate all of our colleagues to the new system without anyone being disrupted in their work by the virtual move. There were some minor hitches, of course, but overall we were successfully able to manage the change. At the same time, change always causes some uncertainty in people. I think that’s a general, understandable reaction. So in addition to the infrastructure, it was just as important to reassure our colleagues that everyone was along for the ride, and also to make sure they received transparent information regarding every single step. We created the opportunity for mutualdiscussions, and this gave us the chance to speak openly about any uncertainties.

Andreas: In the end, in addition to ensuring the processes, we were also able to leave almost all the uncertainties behind. Our colleagues simply carried on with their work, with all the required conditions in place.

AUDI: Another expert, Szilárd Csepeli, summarises the virtual division. Szilárd, how has passing the baton worked out? What have you inherited?

Szilárd Csepeli: Since 1 April 2021, SCC activities have led to a closer, united whole in our virtual business. Since then, there have been many forward-thinking initiatives in the  regulatory system. Among other things, committees and support bodies were formed to help unite SCC activities: our organisation has become familiar with the Shared Competence Board and the Shared Competence Committee. But we have made progress with our united brand, too. We have further developed our joint marketing and organised numerous events so that people can get to know us better. I would like to thank the agile team that created all this!

AUDI: Soon, Audi Hungaria Ahead will be able to look back on the first year of its history. What milestones stand out over this period?

Andreas: After the company’s foundation in February, events really sped up, and by March, we were already celebrating the arrival of the thousandth SCC colleague. June saw the launch of the company’s Mynet site, while the daily workflows began in full at Audi Hungaria Ahead in July. This meant that we were present at the open day for the 30th anniversary of Audi Hungaria as an independent subsidiary. In autumn, together with the Hungarian government, we announced funding for training our colleagues, and – as there can never be too many occasions to celebrate – on 7 November, in the fantastic environment of Audi Hungaria’s jubilee celebrations, we also presented the new company to members of the press and invited guests.

AUDI: What services are you most proud of? What is the true USP for Audi Hungaria Ahead in Győr?

Andreas: That’s like asking a father which child he loves the most! Naturally, we are equally proud of all the services we provide. At the same time, there are some examples that make us truly unique in the Volkswagen Group. Currently, we are the only subsidiary that offers procurement services for several group brands, which helps us to create synergies.

János: One significant competitive advantage is that our SAP solutions and logistical services are available for every group site. In recent years, we have constructed the Purchase-toPay (E2E) process for the general procurement of certain parts, which means that we manage the workflows for AUDI AG here in Győr from start to finish – from placing orders to invoicing.

AUDI: Continuous success and development, and there is no question about what comes next…

Andreas: We have an exciting year ahead of us. Our clients are increasingly familiar with our company, and there is more and more interest in our new services. Our competence-based services form the main part of our portfolio. We have a huge amount of experience in this area and are very competitive – this is definitely our biggest strength. What goals have we set ourselves? Clearly, the main goal is the further development of our portfolio, as well as continuous growth with stable procedures.

AUDI: Audi’s international services in Győr are now concentrated in two places. What is cooperation like between the parent company and its subsidiary?

János: We are moving forward hand in hand.

Szilárd: Exactly! Both sides work according to the same standards, planning processes and business logic. We are clear about our strengths, but we try to work out together which services in the future can grow most effectively in which company. We also harmonise our communication activities – we are making each other stronger. You could say that we are pulling each other along through the competitive environment. Our shared mantra is competence development. This forms the basis for creating added value with the services for our clients.  competition is also increasingly intense on the services market, too. We will only reach our goal together, with a well-trained team, which is why the ability to learn and motivation for self-development are crucial to the business.

AUDI: How do the individual areas of expertise work in SCC today?

Szilárd: Our basic assumption is that all of the areas in SCC should enjoy the greatest possible autonomy. This means that for our own business development, every stakeholder operates independently, while we make agreements together about what strategies to take. We analyse our shared metrics, evaluate our progress, monitor client satisfaction and shape our budget structure. To manage this, we have set up a board of management – the production areas of our company, such as engine and vehicle production, have set an excellent example in this regard. This enables us to take action together and also properly represent our interests. We are building superb foundations: working in the network of SCC areas, proactively and focused on the client!

AUDI: What are your further goals?

Szilárd: Our whole world is about competitiveness. We are working on building new business relationships and deepening existing ones, while consolidating our new services and  continuously optimising our portfolio. We are bringing our services to market, and, coming from the world of production, we know that progress and change never stop!