BMW's Dealer Communication System- the 'Ultimate Driving Machine' behind Phenomenal Sales in Mexico
BMW needed visibility on its stock and a centralised method of information exchange for locating cars and spare parts and coping with larger volumes.
- Region
- Mexico
- Alliance partner
- SAP
- Solution
- Business Intelligence
- Infrastructure and Security
- IT Transformation - Strategy and Architecture
- Portals
- Supply Chain Management
BMW Group Mexico is the leader in sales within the luxury car segment. Sales in Mexico were increasing at a phenomenal pace (up 68% in 2000, compared to the previous year). BMW Group Mexico was growing very fast and delivery efficiency was in jeopardy. Success was putting a strain on the information systems.
Capgemini created a Dealer Communication System (DCS) Internet web portal linked to SAP® R/3. BMW dealers can now place orders online - configure and purchase cars, motorcycles, check parts and prices and receive a confirmation and follow up on their orders. Three DCS´s were developed at the same time and are now in operation - Mexico, Brazil and Argentina. BMW was one of the first automotive manufacturers in Mexico to use a DCS over the Internet with SAP® R/3 transactions.
Dealers are now able to track order status, from headquarters throughout the rest of the world. Supported by the Dealer Communication System, parts orders have doubled, handled comfortably by the same number of staff. BMW is now better prepared to forecast vehicle sales, inventory is streamlined throughout the supply chain giving full information and clarity to dealers.
Client Profile
In the luxury car segment BMW is the sales leader in Mexico and holds 30% of the luxury market. Operations are housed in Mexico City supported by an 80,000 square meter surface plant (production & parts warehouses) in Toluca, central Mexico. This is also the site of an international Service School used for training employees, post-sales, as well as for special car production.
BMW arrived on the Mexican market at the end of 1994 in the midst of one of the worst financial crisis in the history of Mexico when the peso was devaluated.
Thanks to quality and brand positioning, a phenomenal increase in popularity in only 6 years grew BMW Group Mexico sales at an exceptional rate - by 68% in one year (2000) compared to the previous year.
Business Issues
BMW Group Mexico takes an aggressive approach to growing its business. Continuous investment in the country has been key to producing excellent results such as its programs with domestic suppliers. BMW Group Mexico suppliers increased by 50%, parts exports to other BMW plants worldwide.
BMW Group Mexico had grown so fast from 1994 that demand exceeded efficient delivery
capacity. Success in the market after selling so many cars put an enormous strain
on the information systems.
Authorized BMW dealers operate a 24-hour, after-sales service organisation from
21 cities within the Mexican republic. Methods for locating spare parts needed
streamlining - did the part exist in stockat another dealer? The same needs extended
beyond parts - to locating cars. BMW needed full visibility on its stock and a
centralised method of information exchange.
Back in 1998, BMW Group Mexico faced the need for an upgrade in their SAP R/3 application. Among several major competitors, BMW selected Capgemini since they were the only one with the approach to solving the issue of the SAP upgrade plus add more business benefits. This was one of the fastest SAP R/3 implementations ever carried out by Capgemini. The FI, CO, MM, SD and PP modules were implemented in four months.
BMW AG was running out of time and needed a worldwide solution for small subsidiaries/markets, up and running as soon as possible. The pilot would be Thailand. Upon review of the Mexican implementation, it was decided to take the complete parts module implemented in Mexico for this project.
Solution
The solution provided by Capgemini allows dealers to enter a
web site and see the inventory of spare parts and cars available both through
the dealer network and at the factory. The web portal permits dealers to go on-line
and:
- check parts
- check prices
- configure cars, motorcycles
- purchase cars
- specify quantities and receive a confirmation
- track order status through the pipeline from the moment the vehicle is configured until the dealer receives it.
Back-office systems (SAP R/3) use SAP’s web-integration tools. such as WebStudio for the HTML user interface. An Internet Transaction Server (ITS) was installed to map web pages to SAP transactions. Capgemini developed Internet Application Components (IAC) using ABAP/4™ for seamless integration into SAP pages.
The spare parts model solution developed by Capgemini Mexico
was used as the template for BMW AG worldwide parts management system for small
markets (Asia, Latin America,Russian, and some countries in Europe).
BMW was one of the first automotive brands in Mexico to use a DCS over the Internet. There are three DCSs currently in operation in Mexico, Argentina and Brazil.
Capgemini’s business intelligence strategy is helping BMW to
make the best decisions with future plans to provide applications management
services.
Benefits
Benefits to BMW include:
- full information and clarity to the dealers
- the ability to cope with larger volumes or orders
- parts orders have doubled and increased in volume 100% (using same number of staff)
- BMW benefits from a 50% increase in sales (number of transactions) over the previous year
- this infrastructure permits responding to sales without any problems.
- BMW can forcast vehicle sales allowing streamlining of its inventory throughout the supply chain
BMW management commented that: “Working with Capgemini has given us the proper IT solutions that the business demands to make us the Number One leader in the luxury segment. This level of success beyond a doubt, can be contributed in part to the advantages of the IT projects. Our main partner for all our IT projects is Capgemini.”
Written in co-operation with BMW Group Mexico
No part of this document may be modified, deleted or expanded by any process or means without prior written permission from Capgemini.
SAP, mySAP and other SAP products and services mentioned herein are registered trademarks of SAP AG in Germany and in several other countries
The names, logos and other BMW names of BMW and MINI are registered trademarks and property of BAYERISCHE MOTOREN WERKE AKTIENGESELLSCHAFT, BMW AG, and they are licensed to BMW de México, S.A. de C.V. and Toluca Planta de Automóviles, S.A. de C.V.
No license to any BMW AG intellectual property has been granted by this document.
