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					           Mopar
          overview


          Pietro Gorlier

Chrysler Group LLC 2010‐14 Business Plan
           November 4, 2009
  72 years of Mopar history




         1937                   1964              1966              1970/71                1973               2002                  2007


        Chrysler               Mopar              Mopar          Mopar vehicles           Mopar            Mopar brand          New state‐of‐
     trademarked             parts depot      performance           dominate           establishes         relaunched,         the‐art  dealer 
        MOPAR                 network        parts launched        NHRA’s Pro        dedicated parts        integrating       daily parts stock 
    (MOtor PARts)            established           Folks           Stock class,      delivery service,    Mopar & dealer       replenishment  
                                             everywhere  are     winning 5 of 7       becoming the        inventory and            service
                                               proud to call     races that year         industry            top level 
                                                 their cars                              standard          motorsports 
                                                “Mopars!”                                                  participation




4 independent enthusiast publications 
4i d     d t th i t bli ti                                                                                                  340 enthusiast clubs 
                                                                                                                            340 enthusiast clubs




                                                      280,000 parts offerings
       Allen Johnson Mopar
        Pro Stock Drag Car
                                       200,000 order lines and 800 trucks shipped daily                                     Large web presence



                                                          Chrysler Group LLC 2010‐14 Business Plan        November 4, 2009                          2
Mopar brand




             What Mopar stands for today                                                 The opportunity


 • Pure performance image: quality, 
  speed, power & passion
                                                                                 S E R V I C E     &   P A R T S


 • Accessories leadership links                                   • Vehicle owners primarily seek Original Equipment Parts
                                                                    Vehicle owners primarily seek Original Equipment Parts

  enthusiast world with regular parts                             • Service specialists are key decision makers in  parts‐
                                                                     buying process; they seek quality of service, parts, tools 
                                                                     and support
 • After‐sales specialists recognize value 
                p              g
  of Mopar as a brand                                             • Quality of service is a key driver in customer retention 
                                                                     for both parts and vehicles


                         y         p     g                        p           p
     To add value for Chrysler, Jeep, Dodge and Ram brands, Mopar must expand its historical 
      strengths as a brand and as a parts provider into areas of service and service excellence




 Parts                             Tools                                     Process                       Service

                                              Chrysler Group LLC 2010‐14 Business Plan        November 4, 2009                     3
Mopar brand expansion




            Expansion of brand will be driven by radical improvements in all areas



             Sales &                              Service                           Parts logistics
            Marketing

                                          Benchmarking
                                          B h     ki


      • Continuous and obsessive benchmarking against best in class competitors to
        Continuous and obsessive benchmarking against best‐in‐class competitors to 
        drive change, preserve vehicle brand positioning and Mopar business
         OEMs, because quality of service and parts delivery is a key factor in buying decisions
         Aftermarket specialists, real competitors for OEMs and dealers
      • Leveraging all Fiat Group best practices to accelerate change

                                         Chrysler Group LLC 2010‐14 Business Plan      November 4, 2009   4
Mopar sales share of market



                 Mopar market share




                    ~30%                                                                                                    • Parts demand is 
                                                                                                                               expected to 
                                                                                                                               stabilize in 2010
                                                                                                                               and start 
                                                                                                                               rebounding in 2012
                                                                                                                               as vehicle volume 
                                                                                                                               as vehicle volume
    Sources: 2009 AAIA Fact Book (excludes tires), and 2009 NASPC data book
                                                                                                                               and age improves
                                                                                                                            • Target volume 
                                                                                                                                       based on 
                                                                                                                               growth based on
          Parts market share benchmark                                                                                         market share gains 
  Industry average                                             25 ‐ 35%
  Best‐in‐class                                                   >40%
        Source: 2008 Carlisle, RL Polk and Chrysler data (include warranty)




                                                                              Chrysler Group LLC 2010‐14 Business Plan   November 4, 2009        5
Launching initiatives to drive revenue and market share



   • Customer Retention
           First year loyalty programs
           Expanding availability and content of service contracts


   • Product portfolio management
          Shorten time‐to‐market for accessory and remanufactured 
          parts and expand portfolio
           Market driven “smart pricing” program


   • Channel
           Wholesale retailers
           Independent repairers
           Collision parts price match program


   • Network capacity
           Number of technicians & service advisors
           Weekends & extended hours
           “Express lane” development
           “Express lane” development



                                              Chrysler Group LLC 2010‐14 Business Plan   November 4, 2009   6
“Moparized” vehicles – Support vehicle lifecycle




             First‐to‐the‐
             First‐to‐the‐US Market Flo TV                  Live On‐
                                                            Live On‐Board TV




                                                              Leveraging accessories
                                                              • Designed during vehicle development
                                                              • Engineered to guarantee easy installation
                                                              • Full availability at vehicle launch
                                                                Full availability at vehicle launch
                                                              • Packages that answer specific customer needs

                                             Chrysler Group LLC 2010‐14 Business Plan    November 4, 2009      7
Mopar eStore




 Introducing Mopar eStore…
               Authentic Mopar parts and accessories at your fingertips 
               Authentic Mopar parts and accessories at your fingertips
                    and delivered right to your door via Mopar.com

                          35%+ of internet users shop on‐line for auto parts or accessories                  Source: Google


               Want it.



  Fi d it
  Find it.                          Own it.
                                    O it




                Buy it.




                                            Chrysler Group LLC 2010‐14 Business Plan      November 4, 2009                    8
Service quality and capacity increase


                                                                                                   + 4,500  Service bays
     Initiatives to drive change                                                                   + 10,000  Technicians
                                                                                                   + 3,200  Service advisors
 Service quality                                                        Service bays, technicians & service advisors
     f
 • Enforce dealership standards 
 • Increase qualified technicians
  through dedicated training to 
  improve quality and time of repairs 
    p     q     y               p
 • Leverage quality of service tools
 • Increase company technical 
  advisors to better support dealer 
  network
                                         Saturday service hours competitive comparison
 Service capacity
  Increase number of technicians, 
 •I           b    f h i i
  service bays and service advisors
 • Extended hours & weekend 
  openings
   p    g
 • Expand express service concept
                                         Source: IMR, Service Policy Monitor



                                         Chrysler Group LLC 2010‐14 Business Plan                  November 4, 2009            9
 Dealer network after‐sales business improving and gaining 
 relevance

                                      Dealer parts & service net profit change
                                         Aug 2009 YTD (vs. Aug 2008 YTD)


                                                                                                                                                                                        g
                                                                                                                                                                             • Increasing after‐sales
                                                 +9%                                                                  +7%                                                      contribution to dealer profit

                                                Parts                                                           Service                                                      • Network consolidation improves 
                   Aft
                   After‐sales contribution to dealer results:
                           l      t ib ti t d l           lt                                                                                                                   dealer sustainability, but requires
                                                                                                                                                                               dealer sustainability, but requires 
                         from 44% in ’05 to 54% in ’09                                                                                                                         investment to exploit potential
                                                                                                                                                                               and to improve quality

                                                                                                                                • Daily stock deliveries and
                                             Average dealer parts inventory trend                                                     Daily stock deliveries and 
                                             Average dealer parts inventory trend
                                                    (Adjusted for pricing)
                                                                                                                                                                               automatic replenishment reduces 
                                      Launch of daily stock 
                                                                                                                                                                               inventory
                                                                                                    ~20% reduction since Sep 2006
                                            orders

                                                                                                                                                                               Lower inventory investment 
                                                                                                                                                                             • Lower inventory investment
                                                                                                                                                                               provides opportunity to invest in 
                                                                                                                                                                               service initiatives
Sep‐06
         Nov‐06
                  Jan‐07
                           Mar‐07
                                    May‐07


                                                       Sep‐07
                                                                Nov‐07
                                                                         Jan‐08
                                                                                  Mar‐08
                                                                                           May‐08


                                                                                                             Sep‐08
                                                                                                                      Nov‐08
                                                                                                                               Jan‐09
                                                                                                                                         Mar‐09
                                                                                                                                                  May‐09


                                                                                                                                                                    Sep‐09
                                              Jul‐07




                                                                                                    Jul‐08




                                                                                                                                                           Jul‐09




                                                                                                                                        Chrysler Group LLC 2010‐14 Business Plan            November 4, 2009          10
Leveraging state‐of‐the‐art service tools




 wiTECH diagnostic system
 • Supports diagnosis and software updates through direct
   Supports diagnosis and software updates through direct 
    communication with vehicle computer 
 • Improves dealer efficiency, productivity & profitability


 New wiring diagram application
 • Industry’s first dynamic wiring information system
 • Technician driven design
   Technician‐driven design
 • Vehicle‐specific on‐demand information

 Owners manual DVD
 Owners’ manual DVD
 • Industry first for this application
 • Quick easy access to vehicle features along with instructional videos
 • Environmentally friendly, reduced annual paper usage
      Saves 930 tons of paper or 20,000 trees


                                             Chrysler Group LLC 2010‐14 Business Plan   November 4, 2009   11
North American parts distribution network


                                                                                      2009‐10 network optimization
• 20 facilities                                    • Parts distribution centers footprint & routes 
           5 National PDCs
                                                      reviewed and optimized                                                                              Savings
           15 Field PDCs
           15 Field PDCs                           • Delivery schedule improved for 10% of dealers 
                                                            y            p                                                                        •    4.7M miles (13%)
                                                                                                                                                                  (     )
                                                   • Parts availability restored (in October at 96%) now                                          •    720k gallons of fuel
• Space: 9.0 million sq ft                            targeting best practices


• 175,000+ order lines                                                 Red Deer
                                                                                                        Center Line

    daily                                                                                                      Warren Complex
                                                                                                                                       Marysville
                                                                                               Milwaukee
                                                       Portland                                                                         Mississauga
• 3,000+ shipping                                                                              Minneapolis                                                 Montreal

    addresses                                                                                                                                                  Boston
                                                                                      Denver
                                                                                      D
                                                                                                                      Chicago
                                                                                                                                     Cleveland         New York
• Dealer delivery times                                                                                        St Louis
                                                                  Los Angeles
           70% before 7:00 AM
           90% before 10:00 AM                                                                                             Atlanta
                                                                                                     Dallas


                                                                                                                                      Orlando



                                                        Alaska and Hawaii Serviced 
                                                                by Portland                    Toluca

                                                                                                                                                 National Parts Distribution Centers
                                                                                                                                                    Field Parts Distribution Centers
RoW parts distribution transitions to Fiat Group
from 2010 (25,000+ order lines daily)


                                                                  Chrysler Group LLC 2010‐14 Business Plan                            November 4, 2009                                 12   12
Supply chain improvement



                                                                    Quality

                                                                   Purchasing

                                                               Network Redesign




                                                                                                                                     Customers
     Suppliers




                                                          Supplier & Dealer Integration



                              Inventory     
                              Inventory
                 Advance                                                                                 Order         Phase 
                                Mgt &          Planning     Warehouse     Expediting      Distribution
                 Logistics                                                                               Mgt.           Out
                             deployment




• Parts distribution logistics is a key factor
  for competitiveness and represents 
  leverage to grow business and to increase 
  customer satisfaction 
• From June 2009, a wave of actions were 
  launched to improve performance
• To structurally raise efficiency and 
  effectiveness of system we will leverage
  Fiat Group World Class Logistics model 

                                                           Chrysler Group LLC 2010‐14 Business Plan               November 4, 2009               13
Conclusions and milestones – Building our future



           2009                              2010                                         2012

   Focus on the basics             Target benchmarks                                  Best‐in‐class

• Launch short‐term actions    • Structural actions to                       • Dealer standards fully 
  to start growing
           g     g               reposition the brand and                      enforced 
                                 to increase sales and profit
• Restore parts availability                                                 • Best‐in‐class dealer parts 
                               • Enforce dealer standards                      availability 
• Review supply chain cost       & increase technical 
  and kick off World‐Class       support                                     • WCL i l       d i ll
                                                                               WCL implemented in all 
  Logistics (WCL)                                                              depots
                               • Mopar parts availability at 
                                 industry benchmark and 
                                      roll out
                                 WCL roll out


 Revamp Service & Parts             Service matching                            Mopar perceived as 
       Business                  customer expectations
                                 customer expectations                          added value to the 
                                                                                     brands

                                  Chrysler Group LLC 2010‐14 Business Plan     November 4, 2009          14
Our ambition…




                 Buying Chrysler, Jeep, Dodge 
                “Buying Chrysler Jeep Dodge
                or Ram vehicles, you also get 
                         service and parts”
                  Mopar service and parts




                         Chrysler Group LLC 2010‐14 Business Plan   November 4, 2009   15
     Customer Care
     Customer Care
          Pietro Gorlier

Chrysler Group LLC 2010‐14 Business Plan
           November 4, 2009
           November 4 2009
Customer Care




• Quality of customer care drivers
       Brand – Customer interface
       Brand  Customer interface                             Customer Care 
                                                           improvement plan 
         • Product experience                               combines actions 
         • Customer Care Centers                           along all processes 
                                                           between customer 
                                                           between customer
       Dealer – Customer interface
                                                               and brand
         • Sales experience
         • Service experience
         • Parts & accessory experience
• Excellence can be achieved when 
                  g
  all are exceeding customer 
  expectations
• Rigorous KPI process is required 
  to drive success


                                     Chrysler Group LLC 2010‐14 Business Plan   November 4, 2009   17
A global customer care network 



                     Windsor, Ontario                                         Transition in Q1 ’10 to Fiat Group Customer Service 
                Customer & Dealer Contacts                                    Center in Italy
                                                                                 • 15 countries & 13 languages
                                                                                 • 3.5M contacts a year



  Salt Lake City, Utah
  Customer Contacts
                                                Auburn Hills, Michigan
                                                   Dealer Contacts
Mail & Email processed at 
       Pune, India 



       Mexico City
       Mexico City
Customer & Dealer Contacts




                    Transition to Fiat Group                       Global monthly contacts
                   Customer Service Centers 
                             Q1 ’10
                      Belo Horizonte, BRA                          • 75k+ phone calls
                       Buenos Aires, ARG
                  Customer & Dealer Contacts                       • 10k+ postal mails & e‐mails

                                                         Chrysler Group LLC 2010‐14 Business Plan             November 4, 2009       18
Launching best practice customer care initiatives




Proactive customer contact                                                           Pilot program started Q3 ’09
• Monitor service events on a daily basis throughout our
  Monitor service events on a daily basis throughout our                                     Roll out Q1  10
                                                                                             Roll out Q1 ‘10
  network to identify potential customer issues
• Proactively reach out to customers to improve service quality
• Follow up with customers to ensure their satisfaction




Closed loop
Closed loop                                                                            Process & organization 
                                                                                       alignment in progress
• Track resolution in every step of customer handling process 
                                                                                           Roll out Q1 ’10
  to guarantee a successful outcome for customer
• Monitor process KPI to drive permanent improvement
• Survey customer feedback to identify corrective actions




Timing to launch these initiatives has been shortened leveraging Fiat Group processes
                                          Chrysler Group LLC 2010‐14 Business Plan       November 4, 2009           19
A dedicated US toll‐free number for each brand




          800‐247‐9753




                                Chrysler Group LLC 2010‐14 Business Plan   November 4, 2009   20
Our daily mission…




                                                                      g
                                                                Turning the 
                                                                company 
                                                                towards the 
                                                                customer




                     Chrysler Group LLC 2010‐14 Business Plan    November 4, 2009   21

				
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