The Right Components at the Right Time – Formel D Optimizes Dealers’ Stock Management Processes
As an established global quality service provider in the automotive industry, Formel D offers numerous solutions not only in product development and production, but also in the aftersales segment. One focus of aftersales business is dealer enabling. In the summer of 2018, Formel D joined the “Retail Enabling Parts Management” (REPAM) project as a strategic partner, supporting dealers of a premium German manufacturer in optimizing their stock management processes. In the end, both the dealers and the customer benefit.
Successful, efficient stock management is a major challenge for dealers in the highly competitive automobile industry. In many cases, storage and procurement costs are too expensive, parts cannot be found fast enough or frequently used components are out – all which have a negative impact on efficiency. As part of the REPAM project, the Group will help streamline stock management end-to-end for global dealer operations, from start to finish in 2025. Formel D relies on its extensive OEM-specific process expertise in the area of aftersales – a major benefit for dealers.
Project implementation will be realized in two phases: The first phase consists of several fine-tuned coaching days, which specially qualified and experienced Formel D trainers will carry out on site at intervals of six to eight weeks. On the training days, experts will work with the dealers to analyze the current situation and train them on using the warehouse management and planning system properly and professionally. This electronic system helps dealers optimize stocking of frequently used parts while minimizing storage and procurement costs. Additional key components include creating a measure plan, analyzing the stock and warehouse structure and exchanging experiences.
In the second phase, Formel D will assist customers with continuous, long-term material management support. Dealers have telephone or e-mail access to a Formel D material manager at all times, who offers not only individual support, but also creates monthly reports for optimal stock management.
Native Speakers in Action
Formel D best prepares both coaches and material managers for their tasks at the customer premises, training them with specially developed, market-specific concepts over the course of several weeks. For this, the Group relies on native speakers in the respective markets. Plus, the service provider makes sure the trainers not only have coaching skills, but also have experience working with the OEM. Formel D expects top knowledge in the areas of logistics and retail/sales. When it comes to material managers, analytic thinking and communication skills are a must.
Many Benefits for Dealers
Dealers benefit from professional project implementation by Formel D, saving them time, resources and money. They profit from optimized part availability at the point of sale, meaning they have access to the right components in the right location at the right time. As obsolete stocks are returned as part of the project, Formel D experts also manage to reduce dealer capital commitments. Order recommendations from the warehouse management and planning system and labeling support for returned parts also help dealers cut administrative costs. Last but not least, the customer can improve profitability by sustainably increasing part sales with dealers. A study carried out by the manufacturer reveals just how successful the project really is: The analysis is proof that the REPAM project has positive effects on part availability and the sales ratio, while reducing obsolete stocks, return rates and the number of rush orders. Ultimately, the end customer also benefits from improved dealer service levels.
For the REPAM project, Formel D can draw on its comprehensive experience from a successful ongoing material management project that the Group has successfully implemented for the aftersales department of the same manufacturer for years. As part of this project, Formel D material managers look after more than 60,000 spare parts in the passenger car, motorcycle, trade equipment and life style sectors. The service provider ensures that the spare parts it manages in the customer’s central warehouse are available at all times. Formel D has harnessed insights, using experienced employees from this project to set REPAM on its way.
Comprehensive Range of Aftersales Services
In the area of aftersales, Formel D also supports its customers in service management, vehicle management and warranty management. With service management, the Group provides comprehensive solutions for service readiness when launching new vehicle models, new drive technologies or new materials on the market. Besides creating operating instructions or parts catalogs, the portfolio also includes vehicle programming, type classification, packaging management and maintaining a service hotline. Formel D’s global presence enables fast realization cycles as well as uniform process and quality standards for efficient solutions worldwide.
Services in the area of vehicle management range from retrofitting and converting new vehicles based on country-specific specifications to preparing new and used vehicles for delivery to the end customer. The Formel D range of services also involves preparing trade show and press vehicles, as well as fleet management, for example.
Customers receiving support in warranty management can request a full service package, which includes preparing and performing warranty audits on dealer premises as well as analyzing and storing damaged parts. Formel D has years of experience in problem management processes to draw on.
More than 10,000 employees in 20 countries