Streamlining Business Operations for a Global Automotive

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Streamlining Business Operations for a Global Automotive

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The Challenge

The client was structured as a strong central entity, with strong, full-fledged subsidiaries in the various countries the company was active in. The country organizations were the ones who dealt with the dealerships for all main processes: vehicle sales, after sales, warranty and finance. The existing organizational set up led to many redundant activities and inefficiencies at a process level. Implementing business innovations and changes across the company took long and overall cost levels were high, too high to be competitive in the long term.

The engagement

A comprehensive program was defined to simplify processes from dealer level to headquarters level. In many cases business processes were re-engineered to allow the direct interaction of dealerships with headquarters. The country organizations were reshaped to pure marketing & sales organizations. The other business functions were set up as common services, run centrally. The processes, organization and supporting IT systems were redesigned to support the new operating model. The new IT platform re-used some of the existing systems in conjunction with new, innovative, web based applications. A comprehensive program was set up to define, realize and manage the transformation.

The value we provided

Our involvement at the start of the program, allowed us to – jointly with the client – define the program (scope, objectives, approach), design its different components (processes, organization and technology) and play a leading role in its implementation. The client made a big leap forward by executing the program. Besides the direct impact the program had on the company’s cost structure, the newly implemented operating model allowed the client to be much more effective in implementing process and technology innovations across the value chain. This resulted in the ability to gain better customer insights, increased supply chain visibility allowing inventory optimization, increased ability to manage financial risks and a consistent approach to the different markets the company serves.

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