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Car Trade
Car Trade in the Information Age

Shaping

Business

Networks

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Car Trade

Management Summary

The worldwide liberalization of the markets,

possible of their questions on the subject of

profound political influences and frequent

mobility. The Business Model of the Infor-

new technical developments present car

mation Age allows to react to these chal-

trade businesses with new challenges all the

lenges. Modern information systems and

time. Faced with these challenges, manufac-

communication technology enable the inte-

turers, importers, wholesalers and dealers

gration of the services offered by the part-

are forced to subject their business models

ners involved in the supply chain across

to critical questioning and to adjust them.

company boundaries. This offers individual

businesses the opportunity to concentrate

The disappearance of traditional barriers to

on their respective core competences and at

trade and increasingly customer-friendly

the same time to provide the customer with

legislation are opening the markets to new

a higher level of service.

competitors, but at the same time they are

also enabling businesses in the motor indus-

In order to achieve this integration, the

try to expand into new markets themselves.

internal business processes within the indi-

Thanks to global competition, margins are

vidual companies must be optimized. Only

coming under pressure; concentration in the

then can cross-company collaborative

market is proceeding rapidly. The develop-

processes be set up that will ultimately form

ment of new electronic components and

the basis of a comprehensive supply of

telematics services is shifting the balance in

products and services.

the competitive relationship between manufacturer, importer, wholesaler and customer.

Collaborative processes foster mutual trust

The customers are becoming more demand-

between the partners involved in the supply

ing. They expect to find more than just a

chain a worthwhile challenge: the imple-

contact person from whom they buy a car

mentation of cross-company processes

and who will provide the necessary servic-

guarantees long-term competitive advan-

ing for them. They expect a competent part-

tages for car trade companies and increas-

ner who is able to answer as many as

es their efficiency and profitability.

The Information Management Group

Contents

I. A Changing Industry

Political Trends

Market Specific Trends

Technical Developments

II. Car Trade in the Information Age

Cross-Company Collaboration

9
10

Increases Success
Cross-Company Collaboration

11

in Practice
Three Steps to Success

14

III. There is a lot to be done

17

We Can Meet Your Needs

18

The Information Management Group (IMG)

19

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I. A Changing Industry
Whereas the car trade was able to enjoy a

Euro countries. There are already signs that

boom around the turn of the millennium con-

the Euro is becoming a standard of compari-

trary to expectations at present it is coming

son even in countries like Switzerland or

under increasing pressure. All businesses in

Great Britain. Thus some manufacturers have

the industry are being forced to rethink both

already announced their intention of stan-

by political and market specific trends and by

dardizing prices Europe-wide presumably

new technical developments. All the partici-

not at the lowest level.

pants in the supply chain manufacturers,

dealers, importers and wholesalers are

This liberalization is likewise reflected in the

being challenged to examine their portfolio of

revision of the Block Exemption Regulation

products and services thoroughly and, in some

(BER) No. 1475/95, which was passed by

cases, to make fundamental adjustments.

the European Commission in July 2002, and

These changes bear risks for their businesses

which fundamentally changes the legal con-

especially for those businesses that fail to con-

ditions for brand exclusive car sales. Thus on

front these challenges, or confront them too

the one hand franchise dealers can make use

late or with the wrong strategy. Those which

of the end of the BER to include a second or a

adjust in time to the coming changes, however,

third brand. On the other hand it is now also

can transform the risks into opportunities and

possible for suppliers from outside the indus-

so strengthen their position in the market and

try for example large supermarket chains

make it secure in the long term.

with their millions of customer contacts to

try to penetrate the distribution systems of the

Political Trends

motor manufacturers with multi-franchise

concepts.

The dominant trend in political development

throughout the world is the progressive liber-

Laws are becoming more customer-friendly.

alization of the markets. This applies not only

This starts with the extension of warranty

to the car trade, but to all industries and all

periods, includes the granting of manufactur-

companies that are active across national

ers warranties to the purchase of used cars,

boundaries. For the motor industry, global

and extends to the End-of-Life Vehicles Direc-

liberalization and the opening up of the mar-

tive which has been in force in Germany

kets means that local importers are losing

since 1 July 2002: new vehicles that are reg-

their virtual monopoly position. At the same

istered more than 18 months after the direc-

time it opens up to importers and wholesalers

tive came into force must be accepted back

the opportunity of expanding internationally.

and disposed of at no charge to the owner.

The introduction of the Euro is leading to a

The costs arising from this will be borne

clear leveling out of prices in the car trade

entirely or in large part by the manufacturers,

throughout Europe. This is not only true of the

the importers and the dealers.

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A Changing Industry

Market Specific Trends

Market liberalization, greater price trans-

As in other industries, in the motor industry

parency and more customer friendly laws

too there is a powerful tendency toward con-

however much they may be welcomed from

centration. The reasons for this are not only

the point of view of the market economy

political and economic, but in part also tech-

lead to the weakening of the traditional links

nical in character. For example, the quality of

between customers and their dealers and

vehicles is continually improving. This leads

their brand. In order to counter this devel-

to longer intervals between services, falling

opment, the relationship with the customer

utilization of garages and shrinkage of the

must be cultivated and intensified. The motor

spare parts business. At the same time, the

industry is in the fortunate position of being

different businesses along the supply chain

able to tackle the Relationship Management

attempt to increase their market strength by

from two angles: firstly, directly through the

eliminating stages in the sales route or open-

customer, with the help of Customer Rela-

ing up new paths of distribution.

tionship Management (CRM) and secondly

through the vehicle, with the help of a specif-

Only about twenty per cent of vehicle compo-

ic Vehicle Relationship Management (VRM).

nents are produced by the vehicle manufacturer. Therefore the supply industry is becom-

VRM aims to collect information on the

ing increasingly interesting as a source for

whole life cycle of the vehicle and to make it

the independent car components trade. The

available in the entire sales and service

market for the car components trade has

organization. Knowledge of the complete

shown no significant growth for a number of

life history of a vehicle is the basic condi-

years, in fact sales have stagnated. The con-

tion necessary if you aim to offer worldwide

sequences have been felt throughout the

warranties and effective services, and are

industry: new forms of distribution are com-

prepared to take back vehicles at the end of

ing into being, concentration and cutthroat

their working life. In addition, VRM pro-

competition are leading to a streamlining of

vides information about the customer, which

the market. Furthermore, some components

serve on a database for CRM systems. So

wholesalers are taking a vertical approach to

far, the heterogeneous and often inade-

the market. They are not only acting as

quate IT systems in use by the various part-

wholesalers and spare parts suppliers for

ners in the supply chain have been an

trade customers; they also sell direct to the

obstacle to the creation of an efficient VRM.

retail customer and offer their own garage

Thus it is a regular occurrence that after-

services.

sales vehicle information only comes to

light sporadically, is only collected on a
local basis and is updated only at irregular intervals.

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At the same time, the continuously growing

promotion and advertising, the dealers profit

variety of models is raising the level of

margin. In order to cover a greater part of the

demands on the qualification and flexibility

supply chain, manufacturers are increasingly

of the personnel and the garage. These

taking a vertical approach to the market.

demands can only be met through increased

investment and in many cases only through

With the introduction of performance-oriented

amalgamation.

profit margin systems, a quiet revolution has

taken place in car distribution and in the car

The individual requirements of particular cus-

trade. The reduction of the basic discounts and

tomer segments are coming increasingly to

the premiums paid for individual elements of

the fore. Significant potential is opening up

performance represent an attempt by the man-

through marketing directed toward specific

ufacturers to increase their control over their

customer segments, for example Fleet Manage-

franchise partners in the trade. In this way they

ment and Leasing. The share of fleet and leas-

are seeking not only to achieve greater fairness

ing vehicles is rising annually by ten per cent.

in rewarding performance, but also to optimize

Today some forty per cent of new cars sold are

the implementation of brand strategies for their

registered to companies.

specific make of vehicle.

Further significant developments are evident

Trends among Importers

when we consider the individual stages of the

supply chain:

Independent importers are feeling increased

pressure from manufacturers, who are

Trends among Manufacturers

endeavoring to play the part of the importer

themselves, or at least to exercise a decisive

The integration that has already developed

influence. To strengthen their own market

between the motor manufacturers and the sup-

position, importers are increasingly taking a

pliers is also being sought on the distribution

vertical approach to the market and are buy-

side. Here there are solid economic motives, as

ing out dealers. This often occurs in a situation

cost pressures are forcing the manufacturers in

of generational change in family businesses

the direction of further rationalization. Now

or businesses managed by the proprietor. In

that production has been successfully slimmed

the spare parts trade, importers and whole-

down and the procurement processes have

salers who are tied to brands are experienc-

been optimized, controllers are focusing on

ing powerful competition from the independ-

rationalization of the channels of distribution.

ent wholesale car components trade. Similar-

Today, distribution costs account for about a

ly, suppliers are forcing their way into the

third of the recommended retail price of a new

market with slogans like spare parts in origi-

car. These costs include, in addition to sales

nal manufacturers quality.

The Information Management Group

A Changing Industry

Trends in Trade
The tendencies toward concentration in the

medium-size garages can only accelerate.

motor industry are having a particularly

Garages operate either as service enterprises

marked effect on trade. Manufacturers are

offering everything relating to mobility, or

aiming for a thinning out of the dealer net-

they specialize in individual low-cost servic-

work and pushing for large-scale areas of

es. Here are already plans being discussed

market responsibility, to be run by big all-

for Repair and Maintenance Workshops

inclusive car trade firms. The complete amal-

with low hourly rates.

gamation of several car firms to form one

large joint operation is recommended by

In all this, it should never be forgotten that the

many motor manufacturers, indeed they

dealer has a key role to play in the entire

sometimes even demand this. As a conse-

supply chain. After all, it is the dealer who

quence, both the number of independent

knows the customer, and it is the dealer who

garages and the number of tied garages will

sells the vehicles.

fall even more in the next few years.

Observers anticipate that dealers will concentrate on core functions, e.g. the sale of
new and/or used cars, garage servicing etc.
In this way a reduction in administration costs
can be achieved and ultimately the profit
margin can be maintained. Regional amalgamations will still ensure that the customer
has access to the full range of service.
In addition, the garages are also feeling the
effects of technical progress. Cars are
becoming less likely to need repair, and intervals between customer services are getting
longer. The importance of mechanical repairs
is declining, as cars become ever more complex and demand high investment in technology and the qualification of staff. Only large
garages can afford such investments.
Due to the competition from specialized lowprice garages (e.g. exhaust and brake service), the trend from family business to large

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The End Customer

Developments in the area of e-business per-

customers, with the aid of communication ter-

mit end customers to inform themselves online

minals, services such as traffic information,

at any time about prices, products and ser-

weather forecasts or hotel reservations.

vices of any brand and any dealer. The result

Such services are already efficiently offered

is a customer who is becoming more self-con-

by the telecommunications industry and

fident. He is better informed in the sales dis-

highly specialized content providers. New

cussion, has higher expectations with regard

business models are now under discussion,

to service and wants individual attention. Not

which envisage the purchase of these or

least, he is harder to tie down, as he finds a

other services through amalgamations with

greater and greater choice of suppliers to

telematics service providers from outside

help him meet his needs. For the end cus-

the industry.

tomer, the garage is no longer just the point

of sale, but a place where he finds all the

The acceptance and expansion of telemat-

services necessary to ensure total satisfaction

ics services is, however, very much depend-

of his need for mobility. Accordingly, dealers

ent on the development and quality of

and importers will have to develop into com-

voice-controlled elements, which, unlike

prehensive providers of mobility.

manual operation, do not significantly

interfere with driving. The focus of future

Technical Developments

telematics developments lies increasingly

with car-centered services that offer end

Studies suggest that in future some ninety per

customers, dealers and manufacturers

cent of developments in cars will be in the field

additional advantages and increase cus-

of electronics. The growing proportion of pro-

tomer loyalty: for example, a real-time

grammable components in vehicles will bring

vehicle diagnostic program that informs the

about far-reaching changes to existing pro-

customer and the garage about irregulari-

cesses in after-sales. Here, the motor industry

ties in the cars performance and if nec-

finds itself increasingly confronted with problems

essary can direct the customer to a

that were originally known only to the comput-

garage. The Internet too plays an increas-

er trade. Different components work with dif-

ingly important role in the car trade. It

ferent versions of the software that are not nec-

offers an extremely low-cost infrastructure

essarily compatible with each other. This

with global 24-hour availability, band-

strengthens the influence of the manufacturers,

widths are increasing, communication costs

as they have the knowledge of the relevant

are falling and the end customer can be

components and configurations.

contacted as a business partner. All this

opens up an enormous potential for sales

In the field of telematics some rethinking has

support through the Internet and for Internet

been going on. In the past, the motor indus-

supported distribution in the motor industry,

try has toyed with the idea of offering their

as, for example, shown by the success of

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Car Trade in the Information Age

used car exchanges. In connection with Por-

The Information Management Group (IMG),

tal Technology, the Internet enables compa-

together with the Institute for Information

nies in the motor industry to offer central

Management of the University of St. Gallen.

access to their services. The question of which

partner offers these services is irrelevant. A

In contrast to business models that focus pri-

portal bundles the offerings of all the part-

marily on increasing the value of the compa-

ners involved and offers the user a homoge-

ny (shareholder value), the BMIA simulta-

neous access to these services.

neously considers the customer perspective

(customer value). All the processes along a

Currently, IT infrastructure also presents a

supply chain are looked at from the view-

challenge that may strongly influence the

point of the customer that is, the purchaser

market. The IT systems that are installed by

of the service offered by the company in

manufacturers, importers and dealers have in

the given process. The customer need not

many cases become obsolete and are no

necessarily be the end customer, i.e. the one

longer adequate to handle the trends and

who comes at the end of the supply chain.

developments described above.

II. Car Trade in the Information Age
To be able to continue acting successfully in
the market despite the many challenges, companies in the car industry must critically analyze their previous business models and adapt
them to the demands and opportunities of the
information age. The necessary instruments
for this are offered by the Business Model of
the Information Age (BMIA), developed by

Content &
Community

Manufacturer

Importer
Wholesaler

Dealer
Garage

Car owner

Customer processes

Product &
Life Cycle

Selling used cars

Commerce

Supply
pp y
h
Chain
Maintenance
& Repair
Finance

Booking test drive

Courte
Customer service
Route planning
...

Business Collaboration Infrastructure

Credit scoring

Insurance

Auto-Journal

Nav.services

Banking

Traffic info

Parking systems

Car hire

Fleet
management
providers

Communities
Police

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Cross-Company Collaboration
Increases Success
The BMIA can be applied both to internal

The aim of collaborative processes is to put the

processes (such as the request for a certain

individual partners along the supply chain in a

component) and for cross-company process-

position to concentrate on their core compe-

es (the import of a vehicle) and finally to the

tences. This enables them to offer a product

entire supply chain from the supplier, via pro-

and service portfolio which permits the compa-

duction and distribution, to the return of the

nies concerned to ensure they have a competi-

vehicle at the end of its life.

tive advantage over already existing or potential new competitors also in the long term.

Crucial in all cases is that the customer process takes center stage. To do business suc-

There is nothing trivial about this task, as it

cessfully in the information age, a company

takes place in what has traditionally been an

must understand the customer process and

area of conflict, in which each member of the

address it purposefully. In concrete terms, this

supply chain is striving to increase their influ-

means that a company must recognize and

ence. While the manufacturers in the motor

understand the wishes and needs of its cus-

industry are increasingly trying to get closer to

tomers, and make an effort to answer these

the end customer, the dealers and wholesalers

needs and wishes in its portfolio of services.

have a well-founded interest in holding on to

the customer themselves.

Now, the needs of a customer of the motor

industry are not limited to the purchase of a

Many companies have a tendency to eliminate

technically advanced vehicle. The customer

individual links in the supply chain, in order to

also expects service and support with regis-

serve the customer as directly as possible and

tration, maintenance or ultimate disposal of

take the profit margins saved in this way for

the vehicle. If they are to meet these wishes,

themselves.

the various companies along the supply

chain must work closely together and develop

Cross-company processes, on the other hand,

cross-company collaborative processes.

demand openness on the part of the individual

parties; for example, to guarantee reliable

Only through collaborative processes the cus-

delivery times, warehouse stocks and the

tomer can be offered the services which

progress of production must be disclosed.

retain his loyalty to a brand in the long term.

At the same time they open up a significant

The customer loyalty that all companies aim for

potential for economy along the entire supply

is only possible if a customer is offered the opti-

chain. Modern information and communica-

mal level of service. However, this is only possi-

tion technology enables the realization of col-

ble when the companies involved concentrate

laborative processes.

on their respective core competence.

The Information Management Group

Car Trade in the Information Age

Thus the core competence of dealers is

ture for this. Collaborative processes support

undoubtedly individual customer service on

the flow of goods, services and information

site. Importers and wholesalers have the core

over the entire supply chain. Much in our

competence of supporting the dealers where

example may appear visionary today, and

they are and taking care of the necessary

yet all the processes and functions described

brand marketing. Finally, the core compe-

are available today and can easily be put

tence of manufacturers is production and the

into practice.

product knowledge that goes with it.

The Customers Request...
Concentration on their core competences
enables manufacturers in the motor industry

The example starts with an everyday sce-

to develop, for example, improved products

nario. A customer walks into a dealers

with greater market acceptance and to con-

showroom and has a look around. In discus-

cern themselves with better product informa-

sion with the dealer the customer mentions

tion such as configurators and documenta-

that he would like to have his present vehicle

tion. It permits importers and wholesalers to

valued and trade it in for a new car.

optimize their canvassing of the regional

market. Finally, the dealer can expand and

After a brief inspection of the customers cur-

optimize the service that he offers.

rent vehicle, the dealer is able to give the valuation as requested. He is supported by the

The customer receives optimal product quality

Used Car Calculation Service with which his

and product information. At the same time,

Dealer Portal provides him. This service can

delivery times and customer care can be fur-

be offered by a wholesaler, an importer or a

ther individualized. This will increase his sat-

manufacturer and makes it possible for used

isfaction and therefore also his loyalty to

vehicles to be offered for sale not only in the

his brand and his garage.

premises of the respective dealer, but also

throughout the region and beyond. At the

Cross-Company Collaboration

same time, the dealer enters the data relating

in Practice

to the new customer and his enquiry into his

Dealer Management System. In this way he is

The optimization potential that collaborative

able to call up details of the current status of

processes in the car trade can access, is best

the relationship to his new customer and his

demonstrated by an example. Let us assume

vehicle at any time.

the ideal situation, namely that the participants in the supply chain work together and
have implemented the necessary IT architec-

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The Offer...

Credit Facilities and Purchase...

After the dealer has made the customer an

Subsequently, the customer and the dealer

acceptable offer for his used car, they begin

discuss the available credit facilities for

to configure the car that the customer wishes

financing the purchase of the new car. Here

to have. The dealer checks whether the cho-

too, the Dealer Portal plays a decisive role,

sen configuration can be built. For this pur-

as it also offers interfaces to the leasing

pose, his Portal provides him with a configu-

company or the companys or importers

rator showing the specific characteristics of

bank. In this way a financial package can

different countries, which has been supplied

be agreed there and then and confirmed on

by either the manufacturer or the importer.

the spot. At this point too, the partners in

Subsequently the dealer checks, with the aid

the supply chain must disclose their internal

of his Portal, whether the desired vehicle is

processes. Only in this way is it possible for

already available locally, regionally or within

on-line access to the respective financial

the country. Unfortunately none of the show-

services provider to produce direct approval

rooms have the vehicle requested and it will

of a package.

have to be produced at the factory.

The sales discussion finally ends with the
A direct link to the manufacturers factory

customer ordering the vehicle he has cho-

permits the dealer to give the customer a pos-

sen. The order is placed and before the

sible production date on the spot. At the same

customer leaves, the dealer can inform him

time, the on-line connection gives the dealer

that the manufacturers have already includ-

the chance to offer the customer various

ed his order in their plan.

additional options or perhaps to draw his

attention to the fact that the choice of certain

Delivery...

fittings might affect the delivery date for the

vehicle for instance, if he drops the idea

Naturally, during the waiting period the

of having a sliding roof the delivery time could

customer would like to be kept informed of

be shortened by two weeks.

how the production of his vehicle is progressing. This service too can easily be

In order to guarantee all this, the Dealer

offered. With the aid of a Status Tracking

Portal must, in addition to the direct on-line

Service on the Internet he can check the

connection, have a link to the trade organi-

current status of the vehicle he has ordered

zation through which the dealer can check

at any time.

whether the customers chosen vehicle is

immediately available from another dealer.

In order to ensure that the Status Tracking

On the part of the manufacturer, of course,

Service works efficiently, it may, in some

disclosure of production planning and

cases, be advisable to involve third-party

deadlines is necessary if the customer is to

service providers such as road haulage

receive this service.

contractors or logistics companies.

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At the end of the production and delivery

(General Packed Radio Service) guarantees

period the customer is notified that the new

that all data arrives at its correct destination

car he has ordered has arrived at his deal-

quickly. Various telematics elements ensure

ers today and can be collected tomorrow.

communication between the vehicle and the

This message can be sent to him via his pre-

garage. Optimized logistics systems make it

ferred medium of communication: a Unified

possible to check immediately whether the

Messaging Module establishes contact via

spare parts that may be required are avail-

either SMS, e-mail, fax or telephone.

able. Finally, there must be a regularly updated central data storage system, managed by

A Breakdown...

the manufacturer, to download the vehicle

data and check it against the data that the

After the customer has picked up his car and

manufacturer holds on the respective vehicle.

has driven it for a few months, the first minor

breakdown occurs. The customer is on a

The Repair...

business trip some hundred kilometers from

home when the on-board information system

When the customer arrives at the garage, the

in his car tells him that the battery voltage is

garage mechanic finds that the battery in the

dropping. The on-board information system

customers car has already been exchanged,

suggests a repair garage at a convenient dis-

and concludes that the problem is not with

tance that has the appropriate qualifications

the battery but with a different component of

to repair his vehicle type. The on-board infor-

the car.

mation system also checks that the proposed

garage has a suitable spare battery in stock.

To find this out, the garage mechanic needs

At the same time the system makes sure that

access to a Vehicle Relationship Management

the garage knows that the customer is on his

(VRM) system, which documents the life cycle

way, where he is at the moment and that he

of the vehicle completely.

enjoys the manufacturers First Class Mobility

Status.

After a short inspection the fault is identified:

a software-controlled component with the

To ensure that all this goes smoothly a cer-

wrong version of the software is responsible

tain level of information technology is nec-

for the drop in voltage of the battery. The

essary. Intelligent elements constantly moni-

component is immediately fitted with the cor-

tor the state of the individual units in the

rect version of the software, which is directly

vehicle and make sure that warning mes-

downloaded from the manufacturers data

sages are sent where necessary. The inte-

bank. Once the component has been reini-

gration of the Navigation Service ensures

tialized, the customer can resume his busi-

that the current location of the vehicle is

ness trip; the interruption caused by the

known. A wireless connection via GPRS

breakdown has lasted only one hour.

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Here too, certain demands are made on the

wish-fulfillment can become reality there is still

technical equipment of the vehicle, which

some preliminary work to be done. As a first

must be fitted with the appropriate program-

step, the internal corporate processes of the

mable components. Additionally, the garage

partners in the supply chain must be opti-

must be sure to have facilities for download-

mized and where necessary streamlined. As

ing from the manufacturers data bank.

a second step, cross-company processes can

be set up. The third step is the expansion of

Implementing the Warranty...

services along the supply chain. Of course,

the integration of processes described here is

For the garage too, which was able to repair

not a simple matter. But it offers success

the fault in the customers car so rapidly, the

directly: every intermediate stage achieved

procedure is speedy: after a few days the

increases the efficiency of the participating

manufacturer of the faulty electronic compo-

companies.

nent reimburses the garage for the repair.

The Optimization of
In order to deliver this, there must be a bind-

Internal Processes

ing warranty that is directly accessible on the

garages Portal. For direct reimbursement of

The IT systems that are used in the motor

the costs a suitable interface is required. For

industry are frequently obsolete and do not

the system to be continuously kept up-to-date

meet the requirements of collaborative

over and above the case described, the repair

processes. Practical experience shows that

data must be sent to the manufacturers so

in many cases a thorough streamlining of

that they can continue recording the history

the existing infrastructure is necessary. This

of the vehicle. This also ensures that the qual-

should include a review and, as the case

ity of the product at series level continues to

may be, the revision of business processes,

be improved and that a comprehensive

as well as the optimization of the existing

worldwide availability of information on indi-

ERP system. Over and above this, regard-

vidual vehicles and thus optimal service at

ing the integration of the different process-

all times is guaranteed.

es within a company there is much catching

up to be done.

Three Steps to Success

By means of the revision of processes and
The scenario described above presupposes an

the optimization of systems, costs should be

ideal situation that cannot be assumed to exist

reduced, the level of service raised, access

today. True, all the technologies and processes

to information increased both internally

referred to are available and many have been

and externally and throughput times short-

tried out in practice, but before this motoring

ened.

The Information Management Group

Car Trade in the Information Age

Integration of Partners
Admittedly, in this phase scarcely any new

The integration of different companies along

processes or company services are devel-

the supply chain has a long tradition in the

oped, but the optimization of internal

motor industry in particular. At an early stage,

processes almost inevitably leads to

as part of the system of just-in-time production,

enhanced efficiency, since already existing

manufacturers organize communication with

services can be offered more speedily

their suppliers via EDI systems (Electronic Data

and/or at lower cost. Experience shows that

Interchange). This integration increases the

already in this first phase productivity gains

transparency of the stock-keeping, enables all-

of between 15 and 20 per cent can be

embracing planning and makes for optimiza-

achieved.

tion of delivery times and stocks.

Once the internal corporate foundations have

Now there must be integration of the distribu-

been laid, a start can be made with the inte-

tion processes between the different partners

gration of partners. Only the combination of

in the car trade from the manufacturer and

an integrated set of systems and an equally

the importer and/or wholesaler right through

integrated data storage system will create the

to the dealer. The emphasis must lie firstly on

basic conditions for a strengthening of the ties

the core business: the sale of vehicles and

between partners and for an efficient Supply

spare parts.

Chain Management (SCM).

We are looking for processes without noticeable discontinuities in communication,
whose data can be understood by all those
involved at any time. Previously it was often
only certain specialists in the office or in
the field who could interpret and amplify the
available information when discontinuities
in communication
Manufacturer

Importer
Wh l l

Car owner

Dealer
G

Customer processes
Selling used cars
Booking test drive
Products on offer
Courtesy car
Insurance

Route planning
...

Credit scoring

Insurance

Auto-Journal

Nav.services

Banking

Traffic info

Parking systems

Car hire

Fleet
management
providers

occurred. In conjunction with Enterprise

Application Integration (EAI) and Portal
Technologies, the
Internet, as a low-cost
and universally available infrastructure,

Communities
Police

plays an important
part.

15

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Car Trade

Paper

The application of Portals offers particularly

potential for synergy being utilized. Synergies

interesting prospects. Via a (web) Portal the

can, for example, be developed in the combi-

partners are offered the functions that are most

nation of the spare part trade and the import

important for them. That is, to use the integrat-

of new cars, the implementation of waranties

ed processes the partners no longer need their

with the aid of VRM systems and the support

own systems, but log the data via the Portal on

of CRM measures, or the inclusion in the Cus-

a central system. Thanks to this, problem areas

tomer Portal of offers of accessories from out-

such as coordination of master data simply do

side suppliers.

not arise, since all data is on one system from

the start. When new partners join, they can be

New Services

integrated immediately.
In the information age the car dealer has the
The added value that these restructuring mea-

opportunity to progress from being purely a

sures promise is better information for the cus-

car vendor to becoming a purveyor of mobil-

tomer thanks to on-line access to current prod-

ity. The aim is to offer the customer from a

uct data, such as certain vehicle configurations

single source and in coordination as much as

or catalogues of spare parts. This reduces the

possible of the information and services he

amount of assistance that needs to be given by

requires relating to the car, including, for

the dealer, since the customer is now more

example, vehicle fittings, insurance rates, test

competent. Finally, administrative costs are

drive, multistorey parking garage, repairs

reduced: if the customer orders on-line, he logs

and fuel, as well as the car itself.

the order himself.

Portal technology makes it possible succesAt the same time, processes can be integrated,

sively to expand the range of services on

whereas previously they ran in parallel at the

offer to the customer above and beyond the

manufacturer, importer or dealer, without their

core business. It matters little to the customer

who provides these additional services. All
that matters to him is that his needs are com-

Car owner

Customer processes
Manufacturer

Importer
Wholesaler

Dealer
Garage

Selling used cars

Booking test drive
Products on offer
Courtesy car
Insurance
Route planning
...

Business Collaboration Infrastructure

Credit scoring

Insurance

Auto-Journal

Nav.services

Banking

Traffic info

Parking systems

Car hire

Fleet
management
providers

prehensively and efficiently met. Therefore,

when considering the choice and provision of
such services, the focus should not be on traditional ideas of competition but on the customer alone. Seen from this perspective, it
makes sense to integrate additional, specialist businesses such as suppliers of leasing
and fleet management, and Eurotax or tele-

Communities
Police

matics providers from the telecommunications

industry.

www.img.com

There is a lot to be done

III. There is a lot to be done

The information age offers the motor industry

Psychological factors, too, place obstacles in

very many opportunities to react to the chal-

the way of the practical application of the

lenges of political, economic and technical

Business Model of the Information Age. For

developments. However, this is a complex

example, the idea of competition along the

undertaking. True, the technical requirements

supply chain has traditionally been strongly

are largely in existence, and the strategies

emphasized: manufacturers, importers,

that arise from the Business Model of the

wholesalers and dealers are often in conflict.

Information Age have already proved them-

They have become used to regarding each

selves many times. And yet there are still

other as opponents and are frequently not

obstacles in the way of putting the integration

ready or not yet ready for cross-compa-

idea into practice.

ny collaboration.

The first of these obstacles is the high degree

These obstacles can, however, be overcome.

of complexity of the processes along the sup-

Companies that decide to collaborate along

ply chain. Also, the different levels of devel-

the supply chain not only guarantee them-

opment of the participating companies can

selves long-term competitive advantages,

lead to problems whether it be in IT infra-

they also increase their efficiency and prof-

structure or the three stages of development

itability with every step in this process.

toward integration along the supply chain.

The same applies regarding the absence of
standards for telematics services and electronic components. The need is for uniform
model descriptions that take account of all
process requirements. It is only in this way
that the same data can be used throughout
the whole course of the process.

Car owner

Customer processes
Manufacturer

Importer
Wholesaler

Dealer
Garage

Selling used cars

Produ

Insurance
Route planning
...

Business Collaboration Infrastructure

Credit scoring

Insurance

Auto-Journal

Nav.services

Banking

Traffic info

Parking systems

Car hire

Fleet
management
providers

Communities
Police

17

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Paper

Car Trade

We Can Meet Your Needs

The development and practical application of

Complex integration projects, like those

solutions for the motor industry is one of the

which are typical of the motor industry,

main emphases of the consultancy provided

demand a methods-based procedure.

by The Information Management Group

(IMG). IMG has bundled its know-how in this

In its development of integration projects,

area in a special unit, Car Trade, which

IMG follows the methods suite PROMET . This

specializes in the supply chain of manufac-

set of methods was developed by IMG in col-

turer importer/wholesaler dealer.

laboration with the University of St. Gallen

(HSG) and has proved itself in practice many

The core competences of the Car Trade unit

times over.

are consultancy services in the areas:

IMG has already successfully advised numer Planning, procurement and sale of vehicles
and spare parts
Configuration and management of master

ous national and multinational companies at

all stages of the supply chain within the
motor industry.

data for vehicles

Implementation of warranties
Premiums
Collaborative and integration scenarios for
the individual stages in the supply chain
Process Portals
The range of services offered by the Car
Trade unit includes the following areas:
Feasibility studies, cost benefit analyses
Architecture planning at the level of business administration/organization and
application
Process design
Realization of processes in IT systems
System integration and conversion by
means of EAI tools or classical interface
solutions
Active project and change management

Contact: cartrade@img.com

The Information Management Group

The Information Management Group (IMG)

The Information Management Group (IMG)

As an innovative and reliable consulting

IMG applies its range of services where you

partner, we place our experience and com-

need support in your project. Our services

petence at the disposal of our customers. The

are structured on a modular basis in order to

consultants from IMG possess wide practical

fulfill your specific needs.

know-how and a wealth of experience of the

industry. They are familiar with the structures

As a consulting partner which has received

and challenges of your industry and know

numerous awards, IMG is able to develop

the success-oriented options and solutions.

jointly with you a concept oriented towards the

This allows the time required for analysis and

future requirements of the information age,

the development of strategies to be signifi-

and to support you up to implementation.

cantly reduced and effective goal-oriented

measures to be identified for your company.

A prerequisite for this is intelligent integration

on the levels of strategy, processes, systems

IMG follows an all-inclusive approach in its

and people, and precisely this is the funda-

projects: We support you from the develop-

mental idea behind all our actions. Because

ment of the strategy, through the design or

to us, moving a company means bringing

redesign of the corporate processes up to

about changes simultaneously in all four

organizational and technical implementation.

dimensions.

Our customers benefit from our strong implementation culture new strategies and
processes are only effectively implemented
once integration into the information system
has been completed.
We can summarize our services as follows:
We implement your strategy through goaloriented adaptation of your business
processes and optimum system support.
We bring new life into your business
processes through innovation, a methodical
approach and knowledge of Best Practices.
We realize Business Networking projects
according to the principles of the Old
Economy e-business with Return on
Investment (ROI)!

19

IMG

Polen

IMG Information Management GmbH

IMG Information Management

Mnchen

Polska Sp. z o.o., Wroclaw

Tel.

+49 +89 244 45 2343

Tel.

+48 +71 78 32 100

Fax

+49 +89 244 45 5051

Fax

+48 +71 78 32 200

E-Mail

img.d@img.com

E-Mail

img.pl@img.com

IMG Information Management GmbH

IMG Information Management

Frankfurt am Main

Polska Sp. z o.o., Warschau

Tel.

+49 +69 50 50 44 00

Tel.

+48 +22 874 47 94

Fax

+49 +69 50 50 44 44

Fax

+48 +22 874 47 95

E-Mail

img.d@img.com

E-Mail

img.pl@img.com

IMG Information Management GmbH

Schweiz

Walldorf (Baden)
Tel.

+49 +6227 73 34 60

IMG AG, St. Gallen (Headquarters)

Fax

+49 +6227 73 34 79

Tel.

+41 +71 274 81 11

E-Mail

img.d@img.com

Fax

+41 +71 274 81 81

E-Mail

img.ch@img.com

IMG System Integration GmbH,

Dortmund

IMG AG, Zrich

Tel.

+49 +231 108 762 0

Tel.

+41 +1 305 32 00

Fax

+49 +231 108 762 50

Fax

+41 +1 305 32 32

E-Mail

img.d@img.com

E-Mail

img.ch@img.com

IMG AG, Arlesheim (Basel)

Japan
IMG Japan K.K., Tokyo
Tel.

+81 +3 5796 2823

Fax

+81 +3 3472 5336

E-Mail

img.j@img.com

Tel.

+41 +61 415 66 66

Fax

+41 +61 415 66 77

E-Mail

img.ch@img.com

UK

IMG Japan K.K., Osaka

IMG (UK) Ltd., Egham (London)

Tel.

+81 +6 6221 4990

Tel.

+44 +1784 223 800

Fax

+81 +6 6221 4999

Fax

+44 +1784 439 678

E-Mail

img.j@img.com

E-Mail

img.uk@img.com

sterreich

USA

IMG GmbH, Wien

IMG Americas Inc., Philadelphia

Tel.

+43 +1 512 89 10

Tel.

+1 +610 925 1800

Fax

+43 +1 512 89 10 250

Fax

+1 +610 925 1801

E-Mail

img.a@img.com

E-Mail

img.usa@img.com

www.img.com
www.img.com

5 2005 0502 A4e

Deutschland

PROMET is a registered trademark of The Information Management Group (IMG). All other products are registered or non-registered trademarks of the respective companies.

The Information Management Group