Tag: product inventory
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Q&A with John Sloan, former director, Jeep Brand Global Product Marketing
In today’s post, John Sloan talks about challenges dealers face in ordering inventory that best matches customer demand.
Emcien: Describe the Chrysler-Emcien initiative that examined dealers’ struggles with complexity in the ordering process.
JS: In a soft “push” market where volume is driven by heavy incentives versus the merits of the brand / model, managing cost is paramount. A key piece to focus on is product inventory. Dealers get roughly 60 days of no-interest floor plan. In a soft market, vehicles can easily sit for longer than two months before being sold, so it’s critical that vehicles be easy to order, stock and sell. Simple is better.
Emcien worked on a model to simplify the Chrysler PT Cruiser product mix. There were thousands of possible build configurations for the PT Cruiser, creating significant complexity for engineering and the assembly plant, as well as the supplier extended enterprise. Emcien’s ability to accurately forecast demand is invaluable for a complicated product line because it can assist with reducing the build configurations to those that best match demand. The PT Cruiser initiative validated the power of the Emcien inventory model.
