Smooth motoring in Australia for Kia Motors with Automotive software

Customer Story

Despite being virtually unknown in Australia before 1996, Kia Motors has proven it has what it takes to win over tough-minded Aussie car buyers. With the help of IBS Automotive software, the big Korean is even more serious about growth.

Kia Motors, the South Korean automotive giant, is one of the world’s big growth marques, its cars driven in more than 155 countries. As a good-quality, good-value brand, Kia promises the “Power to Surprise” – and that’s what it plans for Australia.

Kia entered the tough-minded Aussie market in 1996, and after testing the waters and establishing a significant “car park” of vehicles via a distributor, the big South Korean decided to set up Kia Motors Australia on March 1, 2006, to drive growth.

The company’s target is to ship 2,200 vehicles per month. Today Kia already processes over 3,500 line items every month.

Kia employs 70 people Australia-wide. The headquarters are in Sydney with additional offices in Melbourne, Brisbane, Adelaide, Perth. The company has an annual turnover of AUD 500 million.

Automotive ERP system

“The change-over required total focus on business continuity”, says Kia’s IT manager Danny Meyer. “We could afford no disruption to the 125-dealer network or growing customer base. The immediate challenge was to secure a complete Automotive ERP solution.”

Kia recognised that the previous distributor had used IBS IDSe42 solution (used by 68 percent of the Australian automotive market because it is industry specific). So in the drive for continuity and with strict deadlines, Kia turned to the experience of IBS.

Kia ordered the state-of-the-art IDSe42 system, with business solution packages from Cognos and Wilcomm. The IDSe42 modules included Dealer Connect, Finance, Sales, Warranty, Warehouse Management, Spare Parts, Vehicles and Business Intelligence.

In doing so, Kia joined an array of big-name automotive brands that have chosen the industry-specific automotive solution, including Porsche, Alfa Romeo, Chrysler Jeep, General Motors, Mitsubishi, Jaguar, Lotus, Toyota, Subaru and Volkswagen.

Rapid implementation

The big challenge for IBS was to get the automotive system operational within two months, much quicker than is ideal or usual. But Kia’s faith in IBS expertise proved justified.

“It was a tough task,” says Meyer. “This had to be on-time and on-budget, and IBS had little room to move. Some of our dealers were skeptical of the timeframe, but our partnership with IBS ensured we had a relatively seamless transition on March 1.”

“IBS was impressive. We were ready when orders began flowing on March 2. The relationship we’ve built with IBS worked very well, and we expect that to continue.”

Multiple benefits

IBS says automotive software has provided Kia with the tools to ensure top-flight supply chain responsiveness including: excellent visibility, fast and effective reporting, sophisticated and detailed product tracking (cradle to grave), quick and effective communication with customers, an efficient warranty process, and powerful tools via the online Dealer Connect Portal.

The Dealer Connect Portal is a vital element of IDSe42, which allows customers to access information, enter orders, access stock status and pricing details, all without the need to contact the distributor. All functions are in real time to ensure data accuracy.

Future growth ensured

“Creating ease of interaction and facilitating smooth business was essential for us,” says Meyer. “We are enjoying transparency across our operations Australia-wide and improved efficiencies. I believe that Kia Motors Australia now has the infrastructure to match its bid to become a strong mid-range player in Australia by 2010.”

“We rank customer satisfaction top priority. Relationships and trust are critical. So our supply chain systems have to work well for all internal and external customers. IBS has furnished this through the automotive ERP system. It has set a key platform for growth.”

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