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