Is selling from factory supply sustainable in the German market?

Ben Waller

Publication Number: Executive Briefing 08/17

Author: Ben Waller

Date: September 12, 2017

Tags: New vehicles, Dealers

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ICDP was founded in part to examine and support the move from ‘stock push’ to ‘customer pull’ supply, so from sale of new cars from dealer stock, towards centralised inventory and use of the order pipeline to build to order.  In 2016, we updated our new vehicle supply benchmarking, and asked the question as to where the industry has got to on its journey from push to pull, and more fundamentally, whether the concept of ‘pull-supply’ still remains a valid target today. 

Germany has long been the European market with most sales from the order pipeline, due to customers in the past being more willing to wait for factory orders when compared with other markets.  Customers for premium brands in Germany in particular have benefited from the lower lead times afforded by being located closer to several key sources of production, as shown below.  Only Asian brands building in Europe are included in the survey, but have been treated differently due to the big difference in product variety offering and, in the past, more traditional cycles and lead times for production planning.

To read the full briefing, please follow the link on the right.