Renault Speeds Up Delivery with a New DSS
The assumption was that if a client can get exactly the right model with the right olor and all the options he or she wishes in a “reasonably short” delay (i. e. three weeks), Renault will gain benefits simultaneously on three levels: * Reduction of car inventory level. (Thanks to short delivery times, customers can wait for their cars, so that dealerships can lower their stock levels. ) * Reduction of the price discounts designed to sell cars that do not match exactly clients’ desires. * Since all the options are available to customers with short delivery times, expectation of selling a more profitable product mix.
In other words, Renault decided to switch its supply chain from a built-to-inventory to a built-to-order perspective, while offering a more diverse product range with shorter delivery times! Such an ambitious strategy required a tremendous speed-up of the entire planning process, ranging from the national sales companies (NSC) to the assembly plants via the headquarters. Let us examine this planning process. At the start of each month, NSCs all over Europe define monthly sales forecasts for every model for years Y and Y+l .
Renault Speeds Up Delivery with a New DSS Essay Example
Then the headquartered sales epartment reviews the fgures with industrial planners so as to ensure that resulting productions comply with plants’ capacities, those of Renault and of its suppliers. The discussion between sales and industrial departments may lead to the upgrading of industrial capabilities or to the lowering of sales targets, due to industrial bottlenecks. This planning process took nearly a month each month! The New Delivery Project required the planning process to be shortened to three weeks. Alongside the planning process, customer orders taken in