The supplier and manufacturing elements of the automotive supply chain have had a great deal of focus over the last 20 years in order to reduce cost and improve productivity with initiatives such as Just in Time and Lean Manufacturing. The same focus has not been applied to the Sales and Distribution elements of the value chain, which are estimated to account for between 25-30% of the cost of a new car.
The challenges that are now facing car manufacturers given the economic downturn means that they must consider how to drive out cost and improve efficiency in Sales and Distribution.
Diluted Focus – The core focus for National Sales Companies (NSCs) should be on sales and distribution, but many NSCs also have to manage customer contact centres, systems development and integration, logistics, technical support, dealer support and audit, warranty administration, finance administration, procurement, HR etc.
Volume Challenges – Often NSCs have grown over time as new functions are added and expanded while the volume does not always justify the complexity of the NSC operation.
Process Complexity – for multi-marque manufacturers brand differentiation and brand independence can result in brand specific processes. Process complexity is often increased as each brand undertakes its own process development even where that process adds no value to the brand image or vision.
Systems Complexity – Process differentiation leads to systems complexity as group systems are adapted to support specific brands. In addition with brand independence systems are also purchased to support brand specific point solutions and requirements, leading to a proliferation of systems and systems complexity.
Economies of Scale – With multiple systems and service providers, and solutions supporting multiple brands, economies of scale cannot be realised.
How BearingPoint brings value:
BearingPoint’s lean national sales company approach provides a framework around which the NSC operation can be measured. It recognizes that;