With these changing business dynamics, leading companies are forced to rethink their approach to the service business (after sales business). Service business can be roughly segmented into warranty and non-warranty services, by a proportion of about 1:20.
Innovation at Progressive (A) - Harvard Business School
Answering the following questions:
1. How does Progressive’s performance as an auto insurer compare to that of typical insurance companies? How does its performance changed over time? What explains the difference in performance?
2. Customers of auto insurers are very price sensitive. How problematic is it to Progressive that customers almost always select the insurer that offers the best price?
3. Assess the viability of the Autograph system. What level of consumer acceptance will it take to make Autograph successful? What are the barriers to consumer acceptance? Should Autograph be expanded nationwide?
Made and presented for the course Service Operations Management at the Viadrina University, winter term 2012/2013
Innovation at Progressive (A) - Harvard Business School
Answering the following questions:
1. How does Progressive’s performance as an auto insurer compare to that of typical insurance companies? How does its performance changed over time? What explains the difference in performance?
2. Customers of auto insurers are very price sensitive. How problematic is it to Progressive that customers almost always select the insurer that offers the best price?
3. Assess the viability of the Autograph system. What level of consumer acceptance will it take to make Autograph successful? What are the barriers to consumer acceptance? Should Autograph be expanded nationwide?
Made and presented for the course Service Operations Management at the Viadrina University, winter term 2012/2013
Firm Analysis of Progressive Insurance and how it needs to change its offerings to remain relevant in a driverless car world.
Course Project for BUSI 621 - Strategic and Transformational IT.
Drivers of supply chain transformation (why), characteristics of evolving supply chains as adaptive supply networks (what), and (how) principles to accelerate the transformation.
Barclays U.S - Building the customer experienceMagnolia
Presenter: Sebastian Napoli, Co-founder, NRG Edge
Magnolia CMS and NRG Edge have played significant roles in helping Barclays U.S. online banking build its customer experience. Today, the bank’s marketing site is responsively designed and fully integrated with Magnolia. Not only is the site’s static information content managed, but Magnolia is integrated with the display of dynamic rates and fees and is used to manage helpful “consumer tools” that incorporate calculators and instructional demos. The bank’s journey continues as it now moves to content manage its secure transactional site. We'll share the experience of the journey with conference attendees and talk about the opportunities and challenges ahead.
Firm Analysis of Progressive Insurance and how it needs to change its offerings to remain relevant in a driverless car world.
Course Project for BUSI 621 - Strategic and Transformational IT.
Drivers of supply chain transformation (why), characteristics of evolving supply chains as adaptive supply networks (what), and (how) principles to accelerate the transformation.
Barclays U.S - Building the customer experienceMagnolia
Presenter: Sebastian Napoli, Co-founder, NRG Edge
Magnolia CMS and NRG Edge have played significant roles in helping Barclays U.S. online banking build its customer experience. Today, the bank’s marketing site is responsively designed and fully integrated with Magnolia. Not only is the site’s static information content managed, but Magnolia is integrated with the display of dynamic rates and fees and is used to manage helpful “consumer tools” that incorporate calculators and instructional demos. The bank’s journey continues as it now moves to content manage its secure transactional site. We'll share the experience of the journey with conference attendees and talk about the opportunities and challenges ahead.
Barclays' Multi-Channel Customer Service StrategyMoxie
In this presentation, Barclays, a Moxie customer discusses their multichannel customer service strategy, focused on supporting support clients in channels of their choice. As Barclays is doing this against the backdrop of a financial crisis that constrains investment, undermines confidence and heightens client scrutiny, this presentation also discusses balancing the needs of all stakeholders, while building out a customer focused multichannel strategy and platform.
Matt Smallman, Head of Strategy and Change, Global Client Experience.
Matt Smallman leads the Client Experience Strategy and Change team for Wealth and Investment Management at Barclays. Over the last 4 years his team has engineered and delivered a continuous stream of operating model improvements to the service centre platform which in 2012 won over 10 industry awards for excellence and innovation. Matt previously led Six Sigma process improvement projects at Barclays and before that was an officer in the Corps of Royal Engineers delivering counter improvised explosive device capabilities to deployed operations.
How can you increase profits while your money is literally going out the door? We have identified 10 common service problems companies experience and provided some solutions to those problems, which will help you fix your revenue leakage as well as increase efficiencies and drive more revenues.
Customer Service PowerPoint PPT Content Modern SampleAndrew Schwartz
163 slides include: understanding the basics of effective customer service, knowing customer wants and expectations, the 4 steps to super service, what to say and addressing excuses, implementing a program and examining behaviors, 7 practical steps to customer service, performance standards and quality, looking to the future, Q& A's, increasing customer satisfaction, the top ten customer complaints, the five most common customer requests, 4 steps to super service, how to's and more.
A quick slideshow to enforce some of the basics of giving good customer service in a call center. I made a few modifications to it so I hope this one is better liked. :)
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See the Roland Berger Strategy Consultants (http://www.rolandberger.us/) 2014 study on The Next Challenge Of The US Auto Industry.
http://tinyurl.com/NPAutomotive
http://www.linkedin.com/in/TonyLy
https://www.facebook.com/MechanicalMarketer
Selection from a report written for a Strategy and Competition course in which the assignment was to create a strategy recommendation for MAACO Franchising Inc.
Enterprise Labeling for the Automotive IndustryLoftware
When it comes to the automotive industry, enterprise labeling is particularly important. Because of the intricacies and dependencies of this extended supply chain, it’s easy to see how the right enterprise labeling solution has to assume a more mission-critical, strategic role in supporting several requirements including operational efficiency, cost reduction, globalization, traceanility and proiduct recalls.
Block Exemption Regulation increases competitiveness of automotive industry. Role of open IT standards such as Block Exemption Regulation gains prominence in the white paper
Automotive Parts: The Industry's New Sweet SpotCognizant
For players in the automobile market, aftermarket parts and services is a valuable adjunct to car sales, but this sector is changing rapidly due to market conditions. We offer a schema based on willingness to pay for parts and for service to guide OEMs and other players in their spare parts and secondary market strategies.
Automotive OEM Order to Delivery: A Contrarian View on Global Implementation ...Cognizant
Optimum global order to delivery (OTD) implementation for auto OEMs demands business and IT answer deep questions on the right approach, solution (market-specific or customized), metrics and KPIs, customer readiness, funding sources, functional components, governance structures, etc. We map out in detail the challenges OEMs will face in effecting such a program and a plan for dealing with such OTD hurdles.
DMS Ecosystem – An Edge To Automotive IndustryShingita k.
There are four key business drivers that impact the automotive industry: economic conditions, consumer preferences, government, and technological advances.
There are four key business drivers that impact the automotive industry: economic conditions, consumer preferences, government, and technological advances.
Digital identity of devices and its potential impact in the automotive afterm...Arindam Sen
The presentation is a part of my ongoing research on emerging technologies like IoT, Blockchain, RPA and AI and its potential application across different industries. This particular presentation showcases how Digital Identity of Devices maintained in a Blockchain network can transform the Automotive Aftermarket Industry and address global challenges like counterfeiting and increase customer retention and revenue for OEMs (automobile manufacturers).
Supply Chain & Logistics Basics: The Automotive Supply ChainAngela Carver
Despite the economic downturn, the U.S. automotive supply chain has seen significant growth. Sales volume increased from 10 million to 15.6 million units between 2009 and 2013. These unit increases can be associated not only to improvements in economy, but solid efforts to implement industry best practices to solve supply chain challenges. Some of the top challenges faced by the automotive supply chain include inability to adapt to fluctuations in demand due to capacity constraints, financial constraints due to lack of liquidity, supply chain complexity increases with the globalization of the supply chain, qualified labor shortages and lack of information visibility with legacy technologies. Outdated supplier technology is present most often in tier 2 suppliers such as metal stampers and die casters. Lack of production management systems causes significant delays for OEMs and downstream supply chain partners.
According to the Global Supply Chain Survey 2013 automotive industry leaders plan to focus on both continuous improvement efforts relating to production efficiency and inventory management. Focusing on improving these areas can help to reduce costs and increase supplier collaboration. The top four areas of focus identified in this study were cost minimization, delivery performance, volume flexibility and complexity management. This is where industry best practices come into play. To address these issues automotive supply chain operators are implementing EDI/ASN to more effectively manage inbound shipment schedules and facility staffing. The information gleaned from this change allows these businesses to be proactive rather than reactive. Supply chain managers are also implementing documentation management protocols in order to comply with regulations and improve recall execution. In response to omni-channel retailing the automotive supply chain is also now aggregating orders into once centralized location such as a warehouse management system (WMS). This provides fulfillment centers with a more holistic view of inventory data. With this more accurate view of data, supply chain operations can also reduce on-hand inventory and focus on a just-in-time (JIT) replenishment strategy. This helps to reduce costs creating savings that can be passed on to customers. Transportation routing and other analytics are also being used to make data more accessible to all key supply chain players, including customers. To access more valuable automotive supply chain resources contact Datex experts today at www.datexcorp.com or marketing@datexcorp.com or call 800.933.2839 ext 243.
The vast and crucial auto suppliers industry faces several competitive challenges -- rapid growth in emerging markets, pressure to meet clean air and mileage regulations, and the impact of technology and connectivity. Amid intense competition, suppliers will have to learn how to differentiate themselves and their products to preserve a profitable place in the automobile ecosystem and maintain high entry barriers for rivals. To do so, they must reexamine the profit potential of their products and portfolios, and focus on the innovation potential inherent in each of them.
Similar to Automotive Aftersales - New Agression (20)
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
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The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
Kyiv PMDay 2024 Summer
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Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
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Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
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Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
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Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
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Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
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Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
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1. Automotive After Sales Market
New Aggression
Novoally Software is a Bangalore based company committed to provide innovations into
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2. Introduction
Global market can be broadly divided in three regions America, Europe and
Emerging Markets (Asia, Eastern Europe). Automotive industry has been in slump
for last 4 years after a big sales period of 98-00 years. Today all are facing with
large overcapacity, reduced margins and losing customer confidence except some
Japanese OEM’s. Currently the automotive industry worldwide has excess capac-
ity of some 20 million vehicles, or 45% of current capacity. This overcapacity repre-
sents a huge cost affecting the profitability which is particularly sensitive to levels of
capacity utilization.
With these changing business dynamics, leading companies are forced to rethink
their approach to the service business (after sales business). Service business can
be roughly segmented into warranty and non-warranty services, by a proportion of
about 1:20. Dealer 20% gross profit depends on spare parts and 30% on service la-
bor. For most manufacturers, sales of parts request represent 10-15 % of their annual
revenues as well as 20-30 % of their profits. In addition today manufacturers know
that service covering influences customer brand choice and loyalty. Some automak-
ers in US estimate that they control no more than 20% of total service business for
their cars which is a painful state of affairs, since due to margins on spare parts the
after sales market is a highly profitable.
Any Business usually follows the Path
Growth - Maturity - Processes - Delivery Channels Integration
Today, auto dealers and automakers across developed markets make profits due
to high margins on spare parts and services that have more than compensated for
the auto distribution sales inefficiencies. But, expected market volume stagnates
due to extended service intervals for new vehicles, improved vehicles quality, lower
parts price in new series, and decreasing annual mileage performance per car.
This paper highlights the changing business dynamics of automotive after sales
business across the global market. The changes expected in different business
regions because of new regulations, growth/stagnation, or consolidation among
automakers, with focus on participating stakeholders, their future role and needs in
future.
Stake Holders in After Sales business
The expected transformation in the after sales business will be brought about with
changes in business objective and processes, with the help of information technol-
ogy enhancing the ability to understand, communicate with and evaluate the mar-
kets; to anticipate and respond to the customer needs as never before.
Every stakeholder will have a role to play. By every one today, we can categorize
them as:
• Customer
• Manufactures (OEM’s)
• Components Manufacturers (Parts Supplier)
• Retailers and Distributors: Independent Dealers. Company Owned dealers ,
Independent or Franchised Service center, Mobile service center.
4. Below is the suggested “RPA Grid” for the customer .
Stakeholder Requires System Provides Information Analyzed
• Booking service • Mileage run
• Job card status • Warranty cost • Parts life based on
• Delivery time and • Repair and Maintenance Mileage
status Revenue • Vehicle life: based on
• Vehicle Repair history • Parts and Vehicle Usage mileage and usage
• Cost per Km (running • Condition of usage • Pre warning of failures
expenditure or Main- (driver/driving area, load in vehicles
tenance cost) etc) • Warranty cost projec-
• Residual value of the • Insurance revenue tions
vehicle • Repair type informa- • Supplier status: Quality
• Pre-warning of De- tion (normal, accident, and satisfaction
fects warranty, breakdowns,
• Recall information service agreements)
• Customer complaints:
feedback
• Customer Satisfaction
info
OEM
OEM responsibilities in automobile chain are innovation, design, manufacturing,
sourcing, marketing, logistics, warranty and quality of products and services. OEM’s
makes vehicles and dealers sell them. The excess capacity today represents a
huge cost and affects profitability to all automakers. Continuing effort to save cost
and extent the productivity will lead to further consolidation and merger activities.
It is expected that independent operation OEM’s will remain only 10 by year 2005.
These remaining will each manage a volume of more than $ 80 billion a year.
Changing Trends Business@Future
• Less number of produced cars per • Requiring faster response to markets
model • Faster feedback from markets for
• Increasing customization of cars/ve- new models (to OEMs and Supplier)
hicles • Supply chain Pressure – Under addi-
• Concentration and consolidation tion cost saving
• Competition within/ between models • Improving Inventory visibility
• Maximizing profitability per customer
To improve customer retention and maximize profitability automakers are also look-
ing for another sources of revenues like finance, leasing, insurance etc along with
providing other premium services (as per customer need) for an superior brand
experience . But the problem is access to operational information. The informa-
tion gathered at front end is an ownership of dealer in case of independent dealer-
ships, and most of them dealers do not share the detailed information about sales
with OEM’s but only basic information such as customer name and the sales done
and in case of company owned dealer network, the same information is scattered
across applications and regions. Another daunting challenge for OEM’s is handling
of complexity in models and production. Globalization has resulted into enormous
supply, production and distribution networks.
5. Sales
+
Maintenance / Repairs
Brand Identity
+
New Services
Figure: Revenue divisions in Automotive Business
Ironically as OEM focuses more on after sales business, investors think otherwise.
The top three strategies by investors for automakers are; Improve product develop-
ment, improve control over the cost and close plants, ranks well a head of the high-
est ranked strategy of reducing capital expenditure. A strong message from large
investors for auto vehicle firms to focus only on core operations connected with
selling new vehicles. (As investors are trying to enforce the lessons learned at Ford,
Nissan and Fiat where strategies, operation and cost structure swayed too far from
the core automated market)
Thus current and future strategies of OEM seems to revolve around the following
1. Concentration on core competences
2. Vertical cooperation
3. Customer orientation
4. Customer relationship management
5. Entering new regional markets
6. Full product range
7. Platform – strategy
8. Common parts strategy
9. Niche strategy
10. Product lifecycle management
11. Brand strategy
12. Technological Leadership
13. Flexible production technology
The current transformation along with consolidation requires a new perspective for
the business process. To extent the efficiency and speed to all ends, would involve
a commitment and support of robust IT systems and in some cases new IT solu-
tions. The old traditional solutions will phase out due to their incompatibility to sup-
port new (transforming) business processes.
7. The pressure to reduce cost, maintain margins and retains customer is increasingly
more on the dealer networks. Dealers have approximately 20% margins on Parts
and 30% on Labour and the repair ratio of warranty/non warranty is 1/20. Since
dealer is the window for the service and brand experience for the customer dealer
business has transformed from Product Centric -> Service Centric. The idea today
is to manage the customer lifecycle rather than the product lifecycle, maximiz-
ing profitability per customer and improving customer retention and loyalty. Today it
has become imperative for the dealers to know their customers, based on model,
model age, component types and part numbers rather than just knowing the cus-
tomer by name and size. The customer categorization has changed from just size
to need. The need today is for defining the services offered to customer. These dif-
ferentiated service offered, provides the right opportunity for premium margins and
customer loyalty.
It is this transformation that is forcing dealers to become Digital Dealers to access
and utilize all possible information.
This digital transformation is been brought about by information technology: com-
puters, software and the networks that tie it all together. And the key point is, this
time the transformation is being driven from within the industry, not by outsiders.
How well a Digital Dealer converts data into information and infor-
mation into knowledge -- and then interprets that knowledge to
satisfy the needs and wants of customers -- will define the quality,
strength and growth characteristics of his Service Business.
Despite these high expectations, dealer’s biggest worry is about the increas-
ing technology, complexity and systems delivering inaccurate or incomplete data.
Some responses from dealers are
– Folks who work at car dealerships are not computer-savvy. OEMs keep throw-
ing new technologies at us without providing enough training. We’ll sit through
some goofy Internet class, but no one takes it seriously because the systems are
not user-friendly and they keep changing.
– System integration is not proper. Dealers in some cases publish the wrong
information. This misinformation leaks back to other dealers.
– The only way I can search the inventories of other dealers is if they post their
products and prices on their Web site. We happen to post our entire inventory, but
not all dealers do.
8. Below is the suggested “RPA Grid” for the Dealers
Stakeholder Requires System Provides Information Analyzed
Vehicle related For OEM’s
–User Manual Active -> Proactive
–Technical Manual –Parts Usage
–Repair and Training Text –Vehicle Repair history –Parts Quality /Life
–Warranty Data –Warranty Failure analysis and
Customer related –Customer usage Pattern (com- projection for costs
–Kind/Type/Category plaints/needs /request) –Critical failures /recalls
–Discount/VAT configuration –Tools Management/Life/usage –Profitability per Dealer/Market
–Account receivable/Payable –Critical info –Parts Sales: Usage, Demand and
–Fleet info –Campaign Sales and Statistics Growth patterns
–Promotional Activities and plan- –Labour productivity and effi-
Parts related ning data ciency
–New and Latest Parts info –Sales: Internal and external sales –Tools and Repairing Instruments:
–Inventory Status and Manage- statistics Info / Quality / usage / Life
ment –Cash flow status (invoice lead –Campaign/Promotions: Success
–Pricing info and calculation time) and Failures
tool –Other Financial Data –ROI per Dealer
–Ordering based on Need/Auto- –KPI’s Measurement Reporting
matic replenishment
–Stock transfer and search
within a group of dealers
–Stock adjustment/Stock taking
–Sales Statistics: Need and Pro-
jections (planning)
–Tools Management
–Replacement and refurbished
parts
–Accessories info /data/ stock
Labour related Other Areas of Interest
–Optimization /Utilization
–Time Recording (Productivity –Return Management
and Efficiency) –Insurance Info
–Bay utilization and Planning –Financial systems integration
(scheduling of vehicles, associ- –Accessory Management
ating mechanic to the vehicle) –Logistic Tracking Systems (S-
O-D)
Work order creation related –Used Vehicle Sales
–Vehicle Repair history –Integration with central vehicle
–Warranty and Service contract repair history
info –Market trends
–Diagnostic tools –Residual Value Measurement
–Appropriate delivery time –Sales/Finance/Insurance/Tax
–Discount/VAT (based on work –Competition analysis
and customer) –Sales leakage/ lead and loss time
–Campaign Sales/Management –Inventory status across the dealer
–Stock info group
–Reservation/Quotation options
–Automatic seasonal discounts
–Customer service reminder
9. Supplier
OEM’s no longer has the resources to handle complete development and testing
need for their growing vehicle ranges. Manufacturers are looking for competent
system partners to develop and test larger and more complex systems. In creating
they require supplier to take responsibility for managing interfaces with other com-
ponent suppliers. Automotive manufacturers want to be more focused on brand
management, distribution channels’ management and marketing. This has set in
motion the transformation of auto supplier trade. Tier-1 (direct) suppliers are as-
sumed to bear more risks and responsibilities for manufacturing, technology and
specially cost controls. Also because of the increasing complexity of modules used
in a vehicle assembly (modularity) consolidation and globalization of suppliers is ex-
pected to control and manage costs.
Additional cost saving pressure is also demanding changes in the existing business
process of supplier.
Suppliers are expected to focus more on the following along with transforming and
growing their business.
OEM -----------------Relationship Pressure -------------------- Supplier
• Pressure to interface with all other supplier systems
• To own large and complex systems
• Take ownership
• Merge and Grow (all design and manufacturing activity to be
done by supplier and OEM concentrate on the main task of
selling vehicles)
– Reducing Order time
– Reducing inventory level
– Lowering logistic cost
– Improving inventory visibility
Suppliers are required to undertake heavy investment to acquire and develop these
expanded system capabilities, raising the cost and risk of participation as well as
the opportunities.
As a result
– Some component companies have revived their long term commitment to the
sector (and hence supplier financial strength become increasingly important)
– Smaller players are looking for new partners to acquire breadth of know how
needed.
– Some big players have existed, as stakes have been raised.
The big change underway is, the first tiers are requiring restructuring, the second
tiers companies are having to shift their manufacturing and engineering resources
to support first tier supplier who are assuming an increasing role in sourcing deci-
sions.
10. Below is the “RPA Grid” for the Supplier
Stakeholder Requires System Provides Information Analyzed
• Parts Usage / Failure –
Quality • Inventory and Supply • Parts Usage /Quantity
• Parts Requirement (Pur- visibility • Research and develop-
chase order) • Product Pricing ment data
• Sales: Project growth • Product defect info: Early • New product inputs per
and demand warning market
• Distribution and logistic • Profitability (warranty
info payouts)
• Warranty payouts: Rea-
sons
Conclusion
Raising revenues from after-sales services ought to be at the top of the manage-
ment agenda for companies in maturing industries including Auto industry. The im-
mediate necessity for automakers is to devise a strategy for the Customer life cycle
Management comprising of Sales and After Sales cycle with a holistic viewpoint.
These two parts of the product traditionally have been dealt and thought separately,
but these today need to be integrated with the common objective of building cus-
tomer base, increasing market share, improving after sales margins and maximiz-
ing revenue during the complete life cycle of the product.
In terms of IT investments companies’ have/are generally concentrated in busi-
ness process automation (production side) and sales/ marketing improvement.
Service side of business is underinvested resulting in the imbalance in service been
provided to the customers. It is estimated that 4-5 times of IT spending is made
on delivering product as on delivering services. Today, it has become imperative
for companies to look at their IT spending and balance the investment to improve
competitiveness and customer satisfaction.
Across industries, the service business contributes to 20%-30% of revenue, but
the profit from the same is disproportionately earned at 45%-50%, as compared to
55%-50% from new product. Any increase in service revenue even marginally (10%)
and reduction in service cost (10%) can increase the service profits by approximate-
ly 40%. It is these figures, along with the other competitive benefits that justify the
required investment in service part of business.
The choice is clear-cut – focusing and investing on service business in right way
can dramatically improve profitability and bottom line driving customer loyalty while
gaining competitive advantages.
For other discussions and inquires: automotive@novoally.com
Novoally Software Dev. Pvt. Ltd.
Bangalore | Noida