ICDP NVS Workshop Presentation Slides January 2018

Ben Waller

Publication Number: Workshop presentation

Author: Ben Waller

Date: January 23, 2018

Tags: New vehicles

Downloads: 20Rating:

The full title of this workshop was "FUTURE CHALLENGES TO NEW VEHICLE SUPPLY STRATEGY".

Sustainable solutions in new vehicle supply have been difficult to deliver and sustain, even within a simple franchised channel framework, where retail customers traditionally bought from franchise dealer outlets. The sales channel has become more complex as:

  • Much of the customer buying journey is moving online
  • Customers are increasingly leasing rather than buying
  • New technology and risk of obsolescence is together increasing the possibilities for additional late configuration – even after delivery
  • Increasingly, cars are being delivered through dealers who may have had no previous part in that customer journey, a situation that was in the past largely restricted to certain fleet sales. 

These changes raise a whole new set of complicating factors around the market and dealer level for forecasting and ordering, inventory planning and deployment. 

We need to consider how the traditional franchise network focused new vehicle supply model will need to adapt to these new circumstances.

  • What can be learnt from retailers in other sectors? How do these retailers manage responsiveness and lead times across the product range? How do these retailers replicate the off-line discussions of possible trade-offs between time and product choice?
  • How can the digital channel be integrated with manufacturer’s legacy ordering systems? How can demand sensing, ordering and configuration experience be improved and merged seamlessly across channels?
  • How will changes already under way change who fills the order pipeline? With what mix? How is the resultant inventory deployed, and who funds it?
  • How will players in different channels allocate specific vehicles to customers, and how they are rewarded for any costs and risks involved in supporting the supply chain?

At this workshop we presented examples of innovation, debated scenarios for evolved best practice in new vehicle stocking and supply, and the implications of the options discussed.

The presentation with speaking notes is now available for members to download by following the link on the right.