Download - Leith Inc
By: Christopher Donaldson, Tyler Hagan, Jin Kang, Theodore Prime, Nathan Samiec, &
Michael Rhine
Agenda
Becoming a Winner
• Location, Location, Location• Autopark: 1 stop shop• Capitalizing on Market• Competitors
Strategy Overview
Employee Growth and Development
Employee Growth and Development
• Rarely fire• One recruiter• New employee orientation every Monday (10-30 new employees each week across franchises)
Customer Experience
• Transparency• No waiting time• Autopark format – added
convenience • Salespeople maintain
relationships
Profitability
• Last priority• Marketing strategy
• Car displays• Online marketing – cars.com, Autotrader• Internal marketing company
Forecasting
• Seasonality• Yearly• Monthly• Weekly
• Trends• 10 avg. customers per day• 1% net profit
Forecasting Methods
• Past sales data• Economic factors• 90-day Rolling Average
Inventory Management
• Allotments from Producer• Lead Time
• 5 months for Rolls Royce• 8-10 weeks• 8 cars per truck
Inventory Management
• ABC Classification• Used, New, Certified
• Inventory Policy• Periodic review: once a week• 60 days to sell used cars
• Auctions, other dealerships• 50/50 new/used split
Throughput and Capacity
• Customer Arrival Rate• 10 customers willing to buy a car per day• ~15% of walk-ins are willing to buy a car• Mercedes garage: 210 working hours per day
• Service Rate• Service department busier than sales department
• 9 salespeople• 23 technicians
Throughput and Capacity
• Staffing efforts so a salesperson is always available
• Accommodates buyers• Augments customer satisfaction• Goal- arrival rate<service rate
• Service- 40 bays per building• Poses problems for popular
dealerships
• Increased capacity in both sales and services during recession
• Increased demand/throughput since 2010
Utilization• Paperwork process holds highest
utilization in sales process• Red tape
• Bay areas possess highest utilization for services
•Service Sector Improvements• Service reports to compare actual
and objective hours worked• Electronic communication,
decreasing service time
Bottlenecks
Suggestions
Summary