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Saab

Saab motor cars have earned a reputation for performance and driver satisfaction that is truly superb.

The Situation
Detailed research on the supply chain for spare parts highlighted a problem. Instant parts availability from its central warehouse in Nykoping, Sweden was running at close to 100% reflecting Saab’s commitment to ensure first-class fulfilment rates for orders. Some of its dealers, however, were only reporting a figure of 65-75%, a result which, in Saab’s view, could be improved upon. An independent investigation, including logistics experts from Gsteborg University, confirmed Saab’s suspicions that the problems stemmed from three root causes at dealers:

• stocking decisions for parts were based on overly simple models
• only local trends were known
• lack of time and expertise to manage an effective parts stocking system.

Saab management decided to explore options to give their dealers greater centralised help in the complete supply chain process for parts. Saab initiated a project to look at a new Dealer Parts Replenishment (DPR) system. After rejecting package-based solutions as lacking the desired functionality, Capgemini was selected as a partner to develop a customised solution.

DPR had to cope reliably and rapidly with significant two-way information flows every minute of every day, on a global basis.

Saab dealers operate in markets of widely varying sophistication. The option of asking dealers to install complex software, running on expensive hardware supported by networking infrastructure, and to train staff in system use, was a complete non-starter.