1. Ford of Europe: Successfully Managing Dealer Inventory with SAP® Service Parts Planning
Objectives
Improve customer service through improved parts availability
Reduce inventory value and parts ordering workload for dealers
Increase dealer loyalty, parts penetration, and leveling of order flow into distribution centers
Manage a complex, diverse, and high-volume dealer network
Why SAP
Ford resources for and expertise with SAP® software, helping extend the proven SAP Service Parts Planning application for OEM-managed inventory
Ability to establish optimal inventory profiles for dealers and automatically determine replenishment orders for dealer approval
One central solution for complex supersession, tailored reorder point planning, sporadic parts requirements, and obsolescence
Benefits
Increased profits for dealers and Ford by improving dealer fill to customers, focusing parts management on sell-out activities, and reducing Ford and dealer inventories
Established an integrated, extended supply chain platform that connects more than 170 dealer management systems and helps ensure consistent, correct, and complete data
Leveraged the proven accuracy of the application’s forecasting capabilities and reduced manual intervention for parts managers
Company
Ford of Europe GmbH
Headquarters
Cologne, Germany
Industry
Automotive
Products and Services
Automotive manufacturing
Employees
50,000
Revenue
€25 billion
Web Site
21%
Reduction in total inventory for pilot dealers after 12 months
94%
Fulfillment service level, an increase of six points
<0.4%
Forecast returns value for dealer purchases
100%
Dealer participation with overall positive feedback
“Managing dealer inventories with SAP Service Parts Planning lets us provide the necessary end customer demand visibility to improve the end-to-end supply chain operation. This is a true win- win-win initiative that benefits customers, dealers, and Ford Motor Company.”
Jose Rodriguez, SPRINT Program Manager, Ford of Europe GmbH
38545 (15/05) This content is approved by the customer and may not be altered under any circumstances.