Inchcape moves forward with new distribution system

Customer Story

A new distribution management system is part of Inchcape’s strategy of transforming its business from a traditional wholesale activity into an integrated distribution, retail and business services company

Company background

Inchcape Motors Australia is one of the largest independent distributors of new motor vehicles in Australia. A wholly owned subsidiary of the London-based Inchcape Group, Inchcape Motors Australia facilitates the delivery of around 35,000 new motor vehicles to Australian consumers each year.

Inchcape’s activities in Australia contribute around AUD1.3 billion in turnover to Inchcape Group’s total global turnover of around AUD 12.5 billion.

In Australia, Inchcape has managed importation logistics for five major partners – Subaru, Jaguar, Volkswagen, Peugot and Seat. The company also manages the supply and distribution of spare parts for the Malaysian car manufacturer Proton.

Inchcape turned to IBS for help

Inchcape chose IBS (formerly IDS Enterprise Systems) to provide a motor vehicle distribution management system. IBS stood alone in terms of its understanding and expertise in a complex import distribution business environment.

Inchcape Motors Australia runs the IDSe42 Supply Chain Management/ Enterprise Resource Planning (SCM/ERP) system that has been designed to manage the flow of critical information across the key supply chain blocks of distribution, inventory, stock and delivery. In Inchcape’s business environment, this covers all aspects of vehicle ordering, importation, warranty control and spare parts. IDSe42 also manages all financial functions across the business.

The five partners utilize slightly different modules of IDSe42 depending on their data management and logistics needs. IBS has also built gateways into the various retailing and CRM systems operated by the car dealerships.

Complete customization

David Starr, Information Systems Manager, at Inchcape said the IBS automotive solution provided the flexibility for complete customization, which was important for Inchcape and the particular environment they faced.

“We have had significant input to the all the major software upgrades, which I think says something about our association and the commercial value we attach to the IBS automotive system,” said David.

As an example, IBS and Inchcape developed the Dealer Connect module. This module allows the dealer to follow the life of a vehicle from the time it is ordered to the time it comes back to the dealership for any particular service or warranty requirement.  Dealers can enter warranty claims and inquire on the status of the warranty claim for both vehicles and parts, or they can order parts and inquire on available stock from Inchcape.

The Dealer Connect maintenance sub system also gives the dealers, and ultimately the distributor, control over what functions their users have in the Dealer Connect system.

“Dealer Connect integrates the dealers management system to the distribution system and in doing provides improved customer service and management,” said David

Cut cost out of the distribution system

IBS and Inchcape also developed the V-FOS module (Vehicle Forward Ordering System) that has been used by a number of the partners. Using past trends and forecasts, a forward order is placed on the factory for cars across various colour, trim and option configurations. Once an order is confirmed, dealers can access vehicles within this pool at any time up to physical delivery, and cars are assigned to customers as specific orders unfold. Cars can also be swapped within the pool as customer requirements change.

“V-FOS was designed to expedite delivery to the customer and also cut cost out of the distribution system,” said David.

David believes the partnering approach has been a win-win for Inchcape, its partners, and IBS. “Our needs and the way IBS approach them has resulted in a strong partnership approach to the business relationship,” he said.

A new focus

From 2002, Inchcape will focus its distribution activity exclusively on Subaru new vehicles following the signing of a 10-year deal with the Fuji Heavy Industries to present and market the Subaru range to Australian consumers. The move further down the supply chain is being supported with significant investment in a retail infrastructure and is consistent with changes to Inchcape Group’s global business strategy.

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