Business Transformation

The Evolution of MG Rover Situation: A whirlwind of business circumstances engulfs the UK automotive marketplace. Imagine your company is broken up and sold. You no longer own your service parts supply chain. Your access to financial resources is limited. Competitors are poised to take your customers away. Vehicle owners and suppliers are nervous about your ability to survive. Challenge: How do you serve the aftermarket needs of your customers in the face of such turmoil? Solution: Select and empower a supply chain partner with responsibilities far beyond the traditional to operate your entire aftermarket parts business from end-to-end.

Business Transformare
Evoluia MG Rover Situaia: O furtuna de circumstane de afaceri nghite piaa de automobile din Regatul Unit. Imagineaz-i compania falimentat i vndut. Acum nu mai detii propriul lan de aprovizionare cu piese auto. Accesul la resursele financiare este limitat. Concurentii sunt focalizati s v ia clienii. Proprietarii de vehicule si furnizorii sunt agitati in legatura cu capacitatea ta de a supravieui. Challenge: Cum vei servi nevoile Aftermarket ale clienilor tai n faa unor astfel de tensiuni? Soluie: A selectat i mputernicit un partener care sa asigure managementul retelelor de distributie end-to-end dar si activitatile afremarket.

In 1975 British Leyland (then parent of the Rover Group) encountered financial difficulties that essentially led to nationalization of the company. The British government proceeded to buy out British Leyland in one of the first transactions of its kind. The business profitable parts segment was privatized, creating a company named Unipart. Fast forward to 1988 when British Aerospace purchased the Rover Group. Then, after six years, the Rover Group was taken over by German automotive giant BMW. The Rover Group received only a meager commission on parts sales from Unipart. Though service from Unipart was good, BMW sought to regain control of the lucrative parts segment of the Rover business. BMW had always been very successful operating their own in-house parts business and considered a 3PL foreign to their way of doing business.

n 1975 British Leyland (parinte al Rover Group) a ntmpinat dificulti financiare, care n esen, au condus la naionalizare a companiei, care a fost cumparata de Guvernul britanic. Segmentul profitabil a fost privatizat creand o companie numita Unipart.

n 1988 British Aerospace a cumprat Rover Group. Apoi, dup ase ani, Rover Group a fost preluata de gigantul german de automobile BMW. Rover Group a primit doar un comision de pe piesele vndute de Unipart. Dei serviciul de la Unipart a fost bun, BMW a ncercat s rectige controlul asupra lucrativ pri segment al Rover de afaceri. BMW a fost ntotdeauna foarte mare succes de operare propriile lor in-house i piese de afaceri considerat un 3PL strine la modul lor de a face afaceri.

Changes create opportunity with Cat Logistics Before returning to an in-house parts operation, the Rover Group prevailed upon BMW to study a different business model and review the success that Land Rover was achieving throughout Europe and the U.S. using Caterpillar Logistics Services. Initially, their national operations had been concerned about losing control of their own warehouses in their own markets, but Cat Logistics performance removed those doubts by delivering higher service levels than ever before, proving the decision to be a sensible strategic change. After considerable review, BMW elected to go with Caterpillar Logistics for all of the Rover business, following the precedent established by the Cat Logistics Land Rover relationship. At that time, BMW committed to an enormous new Rover parts distribution warehouse near Desford in Leicestershire, England, that would become one of the largest in Europe, serving both Rover cars and Land Rover. As fate would have it, BMW then abruptly sold the Rover Group in March 2000 to Phoenix Venture Holdings Ltd., initiating a chain of events that ultimately resulted in the company being split apart and Ford Motor Company acquiring the Land Rover business. As the new company was formed in September 2000, their name was changed from Rover Group to MG Rover Group Ltd. Now much smaller and privately held, MG Rover immediately realized it would be difficult to manage the parts business on its own. MG Rover was seeking something quite different than their relationship with Unipart. They wanted a 3PL that could manage their entire parts operation. Because Caterpillar Logistics was already performing so well managing operations for Land Rover throughout the world, it was one of the three 3PLs considered. A thorough review process was conducted and ultimately Cat Logistics was chosen as the supply chain manager for MG Rover. Significantly, the business was awarded with an unprecedented responsibility take over MG Rovers complete parts business, from basic purchasing through distribution, sales, marketing and invoicing.

Modificri cu posibilitatea Cat Logistica nainte de a reveni la o in-house pri operaie, Rover Group prevalat la BMW de a studia un alt model de afacere i de revizuire a succesului pe care Land Rover a fost realizarea n toat Europa i SUA, folosind Caterpillar servicii logistice. Iniial, lor naionale de operaiuni au fost preocupai de a pierde controlul propriilor depozite n propriile piee, dar Cat Logistica "performan eliminate aceste ndoieli prin livrarea de servicii niveluri mai mari dect oricnd nainte, dovedind a deciziei de a fi un bunsim strategic schimba. Dup o revizuire, BMW ales sa merg cu Caterpillar Logistica pentru tot de la Rover de afaceri, ca urmare a stabilit un precedent de ctre Cat Logistica - Land Rover relaie. n acel moment, BMW a comis o enorm Rover nou depozit de piese de distribuie n apropierea Desford n Leicestershire, Anglia, care s devin una dintre cele mai mari din Europa, care deservesc att Rover autoturisme i Land Rover. Ca soarta ar avea-o, BMW apoi brusc a vndut Rover Group n luna martie 2000 la Phoenix Venture Holdings Ltd., a iniia un lan de evenimente care a dus n cele din urm, n cadrul companiei fiind mprite n afar i Ford Motor Company achizitionarea de Land Rover de afaceri. Avnd n vedere c noua companie a fost nfiinat n septembrie 2000, numele lor a fost schimbat de la Grupul de la MG Rover Rover Group Ltd. Acum mult mai mic i privat a avut loc, MG Rover dat seama imediat c ar fi dificil de a gestiona piese de afaceri pe cont propriu. MG Rover a fost ncercarea de ceva cu totul diferit fa de relaia lor cu Unipart. Au vrut o 3PL, care ar putea gestiona ntregul lor pri operaiune. Pentru c a fost deja Caterpillar Logistica performante att de bine pentru operaiunile de gestionare a Land Rover din ntreaga lume, a fost unul din cele trei 3PLs luate n considerare. Un proces de revizuire aprofundat a fost efectuat i n cele din urm Cat Logistica a fost ales ca a lanului de aprovizionare, manager pentru MG Rover. n mod semnificativ, de afaceri a fost premiat cu o responsabilitate fr precedent - preia MG Rover-ul complet al pieselor de afaceri, de la baz, prin achiziionarea de distribuie, vnzri, marketing i de facturare.

Why Cat Logistics was chosen John Parkinson, managing director of the new XPart Limited, the company formed by MG Rover parent Phoenix Venture Holdings to handle MG Rover parts, cites the main reasons for selecting Caterpillar Logistics Services, Inc.: First, says Parkinson, the strength of Caterpillar Inc. A 22 billion-dollar company, Caterpillar pioneered the field of logistics with its extensive global logistics infrastructure and helped build the field of supply chain management, using proven processes and systems designed to maximize business performance. With a parts distribution network of more than 95 facilities and operations in 25 countries on six continents, Caterpillar Logistics Services, Inc. has the widest global reach of any contract logistics provider.

De ce a fost ales Cat Logistica John Parkinson, director general al noii XPart Limited, companie formata din MG Rover-mam Phoenix Venture Holdings pentru a manipula MG Rover pri, citeaz principalele motive pentru selectarea Caterpillar servicii logistice, Inc: "n primul rnd," spune Parkinson, "puterea de Caterpillar Inc" A 22 miliarde de dolari companiei, Caterpillar pioneered domeniul logisticii, cu sale extinse la nivel global de logistic a infrastructurii i a ajutat la construirea domeniul supply chain management, utiliznd dovedit procesele i sistemele proiectate pentru a maximiza performanele afacerii. Cu o retea de distributie piese de peste 95 de faciliti i operaiuni n 25 de ri de pe ase continente, Caterpillar servicii logistice, Inc a ajunge la cel mai larg la nivel global de orice contract cu furnizorul de logistica. n al doilea rnd, n funcie de Parkinson, "MG Rover pri manageri operaiuni n toat Europa s-au familiarizat cu Cat Logistica munca lor solide i de performan." n al treilea rnd, Parkinson crede c un acord a fost extins i fezabil din punct de vedere eminamente manevrabil. Astfel, a fost semnat un acord formal pe 10 ani, ntre MG Rover Caterpillar i Logistic din decembrie 2000. MG Rover a cumprat intregul pachet de servicii logistice, apoi s-a angajat intr-un plan de tranziie agresiv si complex, care a culminat, n martie 2002, cand contractul cu 3PL Unipart urma s expire.

Second, according to Parkinson, MG Rover parts operations managers throughout Europe were familiar with Cat Logistics work and their solid performance. Third, Parkinson believed that an expanded agreement was feasible and eminently workable. Thus, a formal 10-year agreement was signed between MG Rover and Caterpillar Logistics in December 2000. MG Rover purchased the total package of logistics services at the outset, then embarked on an aggressive and complex transition plan which culminated in March 2002, when the contract with existing 3PL Unipart was due to expire.

Relationships built through adversity are the strongest ones When the Go Live date was established, few could have foreseen the enormous complexities and obstacles that lay ahead. Unipart, as the departing 3PL, had lost many highly skilled and knowledgeable people when the news was announced, and there was an understandable reluctance at Unipart to invest in replacing them. New people lacked the detailed knowledge and experience to be effective in the short term. Unfortunately, market forces struck at precisely the same time vendor consolidations, supplier bankruptcies and industry rationalization with the cumulative impact of shrinking the UK supply base. Much like a high performance MG Rover automobile, Caterpillar Logistics kicked into high gear to resolve the problems. A massive array of resources was committed people, hardware, and dollars. A highly skilled Caterpillar Logistics bridging team was rapidly deployed, bringing in specialists from around the globe. Caterpillar Logistics systems were swiftly emplaced and an interface was established with SAP, its IT provider, and Unipart to restore service levels. According to Parkinson, Things that normally would have taken months to fix were completed overnight. Unprecedented Parts Pledge MG Rover and Cat Logistics moved quickly and powerfully to address the temporary hiccup. To boost owner confidence and enhance dealer support, they embarked on a bold parts program for all new MG Rover purchasers in 2003. Fr precedent "prile gaj" If a customers car was out of service and required parts, the MG Rover dealer or authorized repair source quoted a completion time. If the deadline was not met due to late arrival of parts, a special Parts Pledge was invoked and a free courtesy car was provided. During the course of 2003, Cat Logistics paid less than US$1,782 (1,000) on claims for the Parts Pledge, clearly indicating dramatically improved parts availability. Summing up the underlying rationale for the program, Parkinson stated, A key business objective is to offer exceptional aftermarket service to our customers. This program provided our customers with added confidence and signaled a much improved parts situation with excellent availability on the current range of MG and Rover cars.

Relatiile construit prin adversitii sunt cele mai puternice Cand s-a stabilit termenul nu s-au prevazut enormele obstacole posibile. Unipart, ca terti furnizori de logistica au pierdut multi specialisti cand aceasta veste a fost facuta publica, i a existat o reticenta evidenta la Unipart de a investi n nlocuirea lor. Le lipseseau cunotinele i experien pentru a fi eficienti pe termen scurt. Din pcate, forele pieei au lovit exact n acelai timp.

Caterpillar Logistics a ales un plan specializat pentru a rezolva problemele. A fost stabilita o retea masiva de resurse si s-a dezvoltat rapid o echipa foarte competenta cu specialisti din intreaga lume. Astfel s-a restabilit nivelul serviciilor intr-un timp foarte scurt.

MG Rover i Logistic Cat mutat rapid i puternic pentru a rezolva temporar sughit. Pentru a stimula i de a spori ncrederea proprietarul dealer de sprijin, au angajat pe un bold pri program pentru toate noile MG Rover cumprtorilor din 2003. S-a creat un nou program pt cumparatorii de MG Rover din 2003. n cazul n care masina unui client este indisponibila sau daca termenul limit este depasit datorit ntrzierilor de piese, acestuia ii este asigurata o alta masina gratuit.

Pe parcursul anului 2003, se observa o imbunatatire dramatica privind disponibilitatea pieselor. In legatura cu acest program, Parkinson a declarat, "Un obiectiv cheie al afacerii este de a oferi servicii excepionale post vanzare clienilor notri. Acest program a oferit clientilor nostri ncredere i a semnalat o mbuntire cu privire la disponibilitatea excelenta a gamei MG Rover ."

arrangement has become a model for logistics operations of the future. Extraordinarily complete logistics services Cat Logistics involvement with the former Rover Group dates back more than 15 years. Land Rover, formerly part of the Rover Group, became Cat Logistics first external logistics client in 1987. Representing a quantum leap, the present arrangement between MG Rover and Cat Logistics is much more than simple third party logistics it represents a revolutionary method for a company to operate its entire aftermarket parts business. The business Today, Cat Logistics is responsible for every element of MG Rovers parts business. Parts availability for MG and Rover now surpasses 95% and continues to improve. Cat Logistics owns the warehouse and the IT system that drives the business. Cat Logistics personnel buy the parts, stock the parts, schedule the number of parts MG Rover needs; negotiate with suppliers; manage forecasting, product pricing, marketing and promotions; handle new product introductions; prepare new electronic parts catalogs; manage a 24/7 customer help desk; and manage distribution and invoicing. Clearly, this total program goes far beyond traditional 3PL supply chain services. Extraordinar de servicii logistice complete implicarea Cat Logistica cu fostul Rover Group dateaza de mai mult de 15 de ani. Land Rover, fost parte a Rover Group, a devenit primul client extern al Cat Logistics n 1987. Prezentul acord ntre MG Rover i Cat Logistics reprezinta o metoda revolutionara prin care asigura intreaga parte aftermarket din afacere. Acest acord a devenit un model pt operatiunile logistice de viitor. Cat Logistics este responsabil de afacerea MG Rover. Disponibilitatea pieselor de schimb pentru MG Rover depete 95% i continu s se mbunteasc. Cat Logistica detine depozitul i sistemul IT care conduce afacerea. Personalul Cat Logistica cumpara piesele, le stocheaza, asigura de numrul de piese pt MG Rover negociaza cu furnizorii; stabileste preturile produselor, activitatile de marketing si promotiile se ocupa cu introducerea de noi produse; pregteste cataloage piese electronice noi; gestioneaza timp de 24 / 7 un Help Desk pt clienti; precum si distribuia i facturarea . n mod cert, acesta este mai mult decat un tert furnizor de servicii logistice.

Cat Logistics proven, world-class business processes and systems have improved performance in the MG Rover aftermarket supply chain to unprecedented levels. Caterpillars established global logistics network is helping MG Rover strengthen export markets particularly areas such as Eastern Europe and China where logistics are notoriously difficult to organize to quickly and effectively meet the customers needs. When we took over the MG Rover parts business, service levels were falling, says Mary Bell, chairman and president of Caterpillar Logistics Services. Turning that situation around was a huge challenge, but we put all of our resources into the task and now the results speak for themselves. MG Rover dealers are pleased with the marketing support we offer them, as they are experiencing levels of service that are among the best in the industry. And, were still making improvements.

reteaua de Logistica globala stabilita de Cat Logistics ajuta firma sa consolideze pietele de export din zonele Europa de Est i China unde logistica este dificil de organizat pt a intampina nevoile clientilor. "Cnd am luat peste MG Rover pri de afaceri, servicii care se ncadreaz niveluri au fost", spune Mary Bell, preedinte i preedinte al Caterpillar servicii logistice. "Transformarea aceast situaie a fost n jur de o provocare uria, dar am pus toate resursele noastre n sarcin, iar acum rezultatele vorbesc de la sine. MG Rover dealerii sunt mulumit cu suport de marketing care le oferim acestora, aa cum sunt ele au niveluri de servicii, care sunt printre cele mai bune din industrie. i, noi suntem nc de luare mbuntiri."

Looking to the future, Parkinson states, We want to grow the business. Our historic parc (the number of cars in the aftermarket) is declining, but as we introduce new models, parts sales will begin to climb again. So to maintain and grow the business from the US$300 million-plus (168 million-plus) current level to well beyond that, were looking at non-conflicting, third party business. Our full service capability here in Desford provides a USP (Unique Selling Proposition) that no other parts organization possesses. Privind spre viitor, Parkinson state, "Ne dorim s creasc de afaceri. Noastre istorice parc (a numrului de maini n Aftermarket) este n scdere, dar dup cum am introducerea de noi modele, piese de vnzare va ncepe s urce din nou. Deci, s menin i s creasc de afaceri de 300 milioane dolari SUA-plus ( 168 milioane-plus) la nivelul actual i dincolo de care, ne uitam la non-conflictuale, a treia parte de afaceri. Full-service capacitatea noastra de aici din Desford ofer un USP (Unique Selling Proposition) c nici o alt organizaie dispune de pri."