An Automotive Co-operative

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Dates May 2001-Jan 2002

Length of Assignment

9 months

Project Budget

$5m

Project Organisation structure

HCL established a Project Board of 5 Board Members, each with responsibility for a Project module.

 

Description of assignment:

This project was conceived by a group of experienced automotive industry executives who realised that the industry model had broken down. Dealerships are struggling to survive in a competitive environment, with increasingly demanding customers and manufacturers who appear to work on a 'divide and rule' principle.

 

Currently, dealerships must buy vehicles from the manufacturers and hold the spare parts necessary to service those vehicles. If they run short they order from the manufacturer but if they have surpluses they simply hold them with the attendant inventory costs. Dealers are not allowed to trade amongst themselves to optimise inventory holdings or source vehicles already in the dealerships.

 

This project aims to link the dealerships and optimise stocks of vehicles and parts. McKinsey&Co have estimated that the value of vehicles unsold each year because dealers cannot see each other's stocks amounts to $65-80bn.

 

HCL provided generic project management skills to this project. We introduced project plans, regular tracking of progress and reporting. A project organisation structure was devised giving ownership of all modules of the project to specific sponsors. The key areas of development were:

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a web portal

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a marketing campaign involving press launches and motor shows [see photo below of Dubai Motorshow}

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development of HR policies and procedures

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funding and company formation

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sourcing of a trading platform

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successful partnership discussions with IBM

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Last modified: 06/04/08