Appendices for Research Paper

Downstream Distribution Big Picture Mapping:

An analysis of the generic current customer order-fulfilment system
Appendix I
Chart 1: Current Process Map
Chart 2: Problems and Barriers
Chart 3: Key Issues for Change
Chart 4: Potential Solutions
Appendix II
Chart 5: Draft Future Process
Chart 6: Key Customer Booking Process for Build to Order

Page 1 of 7
Downstream Distribution Big Picture Map Appendices

Chart 1: Current Process Map

0 to 7 days 0 to 30 days 2hours 1 hour to 9 months (Average - 3 months)

Annual budget
Constraints reviewed monthly Forecast/target/allocation/annual
quarterly/monthly review
Production National Dealership
Central
Control Sales
Planning 80% less
Company 11% 20% >30% constrained
Orders Broker <10% list
20% (eg Autobytel, Private
Motability) purchase
1 to 60 days Central 19% c 40% Market
Control 1% Research Customer
Direct
seller options list
Daily release (destination) Logistics (eg leasing Fleet/company
company co) 39% purchase
‘Dealer tag’ and forecast • telephone dealer
c 60%
for resource requirement •
Vehicle visit dealer internet site
assembly & • visit manufacturer web site
Daily release and Delivery • visit provider web site
test magazines etc
forecast? date? •
• visit direct sales web site
• personal recommendation

Chart 1: Current Process Map

Unfinished
stock 2nd
Dealer
1 day
delivery to
25%
end user
1%
transport
transport 49% RDC 10% transport
Distribution
Car Despatch centre
50% NDC Leasing 1 day
one third 99% 99% Dealer
(national or transport company
customer tag transport regional) transport
100% 65% Customer
0.5 day PDI PDI pick up
1 day
100% 45 days 1 day 1 day 2 days
0%+
15 days
3.5 days (1 day transit)
Page 2 of 7
Downstream Distribution Big Picture Map Appendices

Chart 2: Problems and Barriers

0 to 7 days 0 to 30 days 2hours 1 hour to 9 months (Average - 3 months)

Annual budget
Constraints reviewed monthly Forecast/target/allocation/annual Customer Driven Order 1
quarterly/monthly review
Production National Dealership
Central
Control Sales
Planning 80% Dealers get no commission
less for
Company 11% >30%
20% demonstration without sale 2
constrained
Lack of IT flow through system 6
Ordersrange price different 7
Up stream, Broker <10% - losing sales to other channels?
list
20% (eg Autobytel, Private
Motability) purchase
No customer data from VM 3
1 to 60 days Central 19% c 40% Market
Control 1% Research Customer
No capture customer orders v lost
Direct sales 4
Excessive organisation - too many seller options list
Daily release
depts or(destination)
functions
Logistics
8 (eg leasing Fleet/company
Conflict between leasing co direct
company co) sales39% purchase 5
‘Dealer tag’ and forecast and dealer network • telephone dealer
c 60%
problem of poorrequirement
for resource volume of data and • visit dealer internet site
Vehicle resource planning for logistics
assembly & • visit manufacturer web site
company 9
• visit provider web site
Daily release and Delivery
test • magazines etc
forecast? date?
No real time delivery dates- 10 • visit direct sales web site
shiploads • personal recommendation

Lack of trust between logistics

Chart 2: Problems and Barriers
Unfinished company and VM 11
Ownership of product & liability v
stock benefit 15 2nd time to PDI to check quality at
Lack of data/communication 12
dealer before handover to customer
Dealer
1 day - legal roadworthy 18delivery
Load consolidation and planning 13 role of RDC to allow reduced lead to
25%
time for market 16 end user
1% rt
spo
ort 49% RDC tran po
rt
transp Distribution 10% tra
ns
Car Despatch centre 50% NDC Leasing 1 day
one third 99% 99% Dealer
(national or transport company
customer tag transport regional) transport
100% 65% Customer
0.5 day PDI PDI pick up
1 day
100% 45 days 1 day 1 day 2 days
0%+
costs of physical inspection/picking if newspaper style delivery, 35%+ 15 days Why have compounds at leasing
up VM faults 14 cost penalty 17 19 companies?
3.5 days (1 day transit)

Page 3 of 7
Downstream Distribution Big Picture Map Appendices

Chart 3: Key Issues for Change

0 to 7 days 0 to 30 days 2hours 1 hour to 9 months (Average - 3 months)

6 - Central function
budget for 6
Annual
6 - Central function for
Constraints dealerships & marketing
reviewed & marketing Forecast/target/allocation/annual
monthly
dealerships 3 - No sharing of market data3
3 - No sharing of market 1 - Late configuration
quarterly/monthly review data 1 1 - Late configuration
requirement
National requirement
Production Central Dealership
Control Sales 2 - Marketless
difference and
Planning 4 -80%
Sold order
7 - Need for real time
7 - Need for realCompany
time 7 11%only
4 - Sold order only
4
20% >30%2
2 - Market difference and
UK restrictions
9 - Flexible manufacturing exchange of data constrained
UK restrictions
9 - Flexible manufacturing
Orders exchange of data Broker <10% list
capacity to meet market 20% (eg Autobytel,
capacity to meet market 9 Private
variations 5 - Dealer direct
variations Motability)
5 - Dealer direct purchase
1 to 60 days Central production orders 5
19% c 40% Market
8Control
- Need for real time production orders
8 - Need for real time
8
1% Research Customer
exchange of marketing
exchange of marketing Direct
decisions
decisions seller options list
Daily release (destination) Logistics (eg leasing Fleet/company
company co) 39% purchase
‘Dealer tag’ and forecast • telephone dealer
c 60%
for resource requirement • visit dealer internet site
Vehicle
assembly & • visit manufacturer web site
Daily release and Delivery • visit provider web site
test • magazines etc
forecast? date?
10 - Postponement strategy
10
10 - Postponement strategy • visit direct sales web site
• personal recommendation

Chart 3: Key Issues for Change

Unfinished
11
11 - Modularity - limited range
stock
11 - Modularity - limited range 2nd 16 - Handover of car by different player
16 - Handover of car by different player
Dealer to service relationship 16
1 day to service relationship
delivery to
25%
12 - Inventory currently 13 - visibility of cost - who
end user
12 - Inventory currently
1% built for VM market share?12
13 - visibility of cost - who
gets the profit compared 17 - sport – between
Trust
built for VM market share?
ort 49% RDCtogets the profit compared an - Trust – betweensport 17
r17
tleasing
transp
who gets the cost? 13 comps
10% andtradealers
n
Distribution to who gets the cost? leasing comps and dealers
Car Despatch centre 50% NDC Leasing 1 day
one third 99% 99% Dealer
(national or transport company
customer tag transport regional) transport
14 - sign over, security and
100%
14 - sign over,PDI
security and 65% Customer
0.5 day PDI quality check 14
pick up
1 day quality check
100% 45 days 1 day 1 day 2 days
0%+ 15 - 24 hour handover to
15 days
15 - 24 hour handover 15to
dealer
3.5 days (1 day transit) dealer

Page 4 of 7
Downstream Distribution Big Picture Map Appendices

Chart 4: Potential Solutions

0 to 7 days 0 to 30 days 2hours 1 hour todownstream;

2 - Simultaneous data exchange 1 months)
9 months (Average - 3 - freedom of dealer to
3 - Central function for 3 2 - Simultaneous data exchange downstream; 1 - freedom of dealer to
Annual budget
3 - Central function for marketing & promotion plans 2 choose range? 1
dealerships marketing & promotion plans
& marketing Forecast/target/allocation/annual choose range?
Constraints reviewed monthly
dealerships & marketing
quarterly/monthly review
6 - Balance capacity against
Production National Dealership
6 - Balance capacity against Central
market variations
Control through Sales
market variations through6 Planning 80% less
differential pricing?
differential pricing? Company 11% 20% >30% constrained
Orders Broker <10% list
20% (eg Autobytel, Private
4 - Dealer direct
Motability) purchase
4 - Dealer direct
1 to 60 days Central production orders 19% 4
c 40% Market
production orders
Control 1% Research Customer
7 - Central Planning Direct 5 - Direct order from
7 - Central Planning7 5 - Direct order from
Transparent seller customer
options list to production
Transparent customer to production5
Daily release (destination) Logistics (eg leasing Fleet/company control ?
control ?
company co) 39% purchase
‘Dealer tag’ and forecast • telephone dealer
c 60%
for resource requirement 10 - Logistics company • visit dealer internet site
Vehicle 10 - Logistics company
replace Central Control ?10 • visit manufacturer web site
assembly8-& Simultaneous data 8 replace Central Control ?
8 - Simultaneous data Daily release and Delivery • visit provider web site
test exchange upstream
exchange upstream • magazines etc
11 - Simultaneous
forecast? data date?
15 - improved connectivity
11 - Simultaneous data 15 - improved connectivity •
exchange of information to and communication of visit direct sales web site
9 - reduce market range exchange of information to and communication of • personal recommendation
9 - reduce market range9 supply stream of future information added to
choice – use pricing supply stream of future information added to
choice – use pricing work 11 increased freedom of
differential mechanisms ? work increased freedom of 15
differential mechanisms ? logistics carrier to do
logistics carrier to do
Chart 4: Potential Solutions
Unfinished 12 - Improved trust in multi-brand milkrounding?
12 - Improved trust in multi-brand milkrounding?
stock business relationship
business relationship
12
2nd 18 - web purchase &
18 - web purchase &
Dealer deliver to customer home18
1 day deliver to customer home
14 - Integrated long term
14 - Integrated long term
delivery to
open book contracts ? 14 25%
open book contracts ? 16 - multi brand loads - end user
16 - multi brand loads -
1% reduce costs considerably16
reduce costs considerably sp ort
ort 49% RDC tran o rt
transp Distribution 10% tra
n sp
Car Despatch centre 50% NDC Leasing 1 day
one third 99% 99% Dealer
(national or transport company
customer tag transport regional) transport
100% 65% Customer
0.5 day PDI PDI
1 day pick up
100% 45 days 1 day17 - Improved quality1 day 2 days
0%+ 17
13 - trust – sample based 17 - Improved
15 days quality
13 - trust – sample based chain/rapid PDI from VM to
quality checking? 13 chain/rapid PDI from VM to
quality checking? 3.5 days (1 day transit) carrier to dealer/delivery
carrier to dealer/delivery

Page 5 of 7
Downstream Distribution Big Picture Map Appendices

Chart 5: Draft Future Process

Order to build given real time

TO: Data transfer Data transfer rate
‘Big
Picture’ Constraints Customer consultation
Process 1 hour to 9 months (Average - 3 months)
inbound Logistics
sequence Production Central
etc Control company/ Leasing Franchised
Control
(pl) Retailer Dealership
Orders
Multi
National Multi Franchise Franchise
Central Sales Fleet Web channel Retailer
Planning Company negotiation
Marketing data and
Direct Web VM
Marketing and access to central dealership
Stored channel
datastream
banked promotional varying degrees of
Vehicle1 day Orders by≤1 day data/mechanisms access
Order and
assembly & dispatch Central datastream Pricing Pool
test date (varying degrees of Booking
web access) confirm Build to delivery date
100% orders
Delivery bank ahead
Customer Customer
schedule and open access
Car to multi franchise logistics access
Despatch companies
Customer pick up point
100%
customer tag (any channel as above)
Logistics company/ Load cross dock or hub
(pl) Milkrun
transport
100% 1 day Chart 5: First draft
Future Process ‘Wheel’ Map

System assumes real time data exchange - via web 1) Annual budget reviewed monthly through 2) Real time constraints
Notes: and assembly planning based on dispatch date and central channel updated order bank
time
Manufacturer process Outbound logistics process Shared access data pool

Instantaneous Data exchange for confirmation at moment of order of all functions

Page 6 of 7
Downstream Distribution Big Picture Map Appendices

Chart 6: Key Customer Booking Process for Build to Order

Chart 6 : Proposed Customer Booking Access ‘Data Pool’

1 Customer 2 3 4
Reserve delivery slot
availability request Customer Customer
T-3 - X days Order and delivery Delivery T +3
min T-3 to - X days
plus1hr confirmed T-O (including advance orders)
(-X days = advance orders)
(-X days = advance orders)

Check Reserve Confirm/Cancel

5
Customer
Order BOOKING SLOTS
at 01.02.00
Management,
Gateway and forecasting
Slot A 08/06/00
Slot B reserved 01/06/00
Slot C empty
Slot D 01/06/00
Central access
build to delivery date
Product availability Outbound delivery slot
check

To all outbound tiers

To all production & supply tiers
Production Slot

To all assembly, modular inbound, parallel sub-assembly

Page 7 of 7