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BMW's Dealer Communication System - the

'Ultimate Driving Machine' behind Phenomenal


Sales in Mexico

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. BMW needed visibility on its stock and a centralized method of
information exchange for locating cars and spare parts and coping with larger volumes.

Cap Gemini Ernst & Young 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 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 comfort-
ably by the same number of staff. BMW is now better prepared to forecast vehicle sales, inven-
tory is streamlined throughout the supply chain giving full information and clarity to dealers.

Client Profile ers. BMW Group Mexico suppliers


In the luxury car segment BMW is the increased by 50%, parts exports to other
sales leader in Mexico and holds 30% of BMW plants worldwide.
the luxury market. Operations are housed
in Mexico City supported by an 80,000 BMW Group Mexico had grown so fast
square meter surface plant (production & from 1994 that demand exceeded efficient
parts warehouses) in Toluca, central delivery capacity. Success in the market
Mexico. This is also the site of an interna- after selling so many cars put an enormous
tional Service School used for training strain on the information systems.
employees, post-sales, as well as for special
car production. Authorized BMW dealers operate a 24-
hour, after-sales service organization from
BMW arrived on the Mexican market at 21 cities within the Mexican republic.
the end of 1994 in the midst of one of the
worst financial crisis in the history of Methods for locating spare parts needed
Mexico when the peso was devaluated. streamlining – did the part exist in stock
at another dealer? The same needs extend-
Thanks to quality and brand positioning, a ed beyond parts – to locating cars. BMW
phenomenal increase in popularity in only needed full visibility on its stock and a
6 years grew BMW Group Mexico sales at centralized method of information
an exceptional rate - by 68% in one year exchange.
(2000) compared to the previous year.
Back in 1998, BMW Group Mexico faced
Business Issues the need for an upgrade in their SAP R/3
BMW Group Mexico takes an aggressive application. Among several major com -
approach to growing its business. petitors, BMW selected Cap Gemini Ernst
Continuous investment in the country has & Young since they were the only one
been key to producing excellent results with the approach to solving the issue of
such as its programs with domestic suppli- the SAP upgrade plus add more business
benefits. This was one of the fastest SAP
R/3 implementations ever carried out by
Cap Gemini Ernst & Young. The FI, CO,
MM, SD and PP modules were implement-
ed 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 Cap Gemini
Ernst & Young allows dealers to enter a
web site and see the inventory of spare BMW was one of the first automotive
parts and cars available both through the brands in Mexico to use a DCS over the BMW management commented that:
dealer network and at the factory. The web Internet. There are three DCSs cur rently in "Working with Cap Gemini Ernst &
portal permits dealers to go on-line and: operation in Mexico, Argentina and Brazil. Young has given us the proper IT solu-
tions that the business demands to
Cap Gemini Ernst & Young's business make us the Number One leader in the
• check parts
luxury segment. This level of success
• check prices intelligence strategy is helping BMW to
beyond a doubt, can be contributed in
• configure cars, motorcycles make the best decisions with future plans part to the advantages of the IT pro-
• purchase cars to provide applications management ser- jects. Our main partner for all our IT
• specify quantities and receive a confir - vices. projects is Cap Gemini Ernst & Young."
mation
• track order status through the pipeline Benefits
from the moment the vehicle is configured Benefits to BMW include:
until the dealer receives it.
• full information and clarity to the deal- Written in co-operation with BMW Group
Back-office systems (SAP R/3) use SAP's ers Mexico
web-integration tools. such as WebStudio • the ability to cope with larger volumes
for the HTML user interface. An Internet or orders 2002/481/VI-Cap Gemini Ernst & Young
Transaction Server (ITS) was installed to • parts orders have doubled and increased Mexico
map web pages to SAP transactions. Cap in volume 100% (using same number of
Gemini Ernst & Young developed Internet staff) Region: Americas
Application Components (IAC) using • BMW benefits from a 50% increase in Sector: Product Industries
EEA/ERP – SAP
ABAP/4™ for seamless integration into sales (number of transactions) over the B2B – SC
SAP pages. previous year
For more information, please visit www.cgey.com
• this infrastructure permits responding to
The spare parts model solution developed sales without any problems
by Cap Gemini Ernst & Young Mexico • BMW can forcast vehicle sales allowing
was used as the template for BMW AG streamlining of its inventory throughout
worldwide parts management system for the supply chain.
small markets (Asia, Latin America,
Russian, and some countries in Europe). SAP, mySAP and other SAP products and services mentioned herein are registered trademarks of SAP AG in Germany and in several
other countries
No part of this document may be modified, deleted or expanded by any process or means without prior written permission
from Cap Gemini Ernst & Young.
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.