BMW (3PL)

Outsourcing operational functions is often the first step for companies testing the 3PL waters. As they gain more confidence, however, these outsourcers move further along the 3PL continuum, shifting from tactical to strategic relationships. Here's a look at how companies travel the 3PL continuum, and optimize their outsourcing relationships.
Companies often start small in their first third-party logistics initiative, outsourcing operational functions. Over time, as they gain confidence in outsourcing and trust in their providers, many companies move further along the outsourcing continuum, transitioning from tactical to strategic relationships. Take BMW Manufacturing Co., which began working with TNT Logistics North America in 1993 to prepare for the opening of the BMW manufacturing plant in Spartanburg County, S.C. "TNT initially handled basic delivery of parts to line-side," says Bunny Richardson, spokesperson for BMW. "As we grew, and as our needs grew, the relationship with TNT grew." In 2002, BMW tapped TNT to provide inbound supply chain management for the plant, including inbound material control as well as transportation from suppliers to the plant. This spring, BMW expanded the relationship again, turning over to TNT management of finished parts from BMW's supplier network to its parts distribution centers throughout the United States. "Now TNT is our partner, managing the supply chain for us," Richardson says. BMW's expansion of the relationship with its third-party logistics provider is not unusual, notes C. John Langley Jr., professor of supply chain management at Georgia Institute of Technology, Atlanta, and co-author of the soon-to-be published Ninth Annual ThirdParty Logistics Study, sponsored by Capgemini and FedEx. "Our data supports the suggestion that companies tend to start outsourcing in a limited, focused way," Langley says. "Then, once they gain experience and have some success with outsourcing, they expand their use of the services their third-party logistics providers offer." Survey results indicate that companies are most likely to outsource operational activities, such as warehousing or transportation. In addition, Langley notes, "there's some evidence that companies are beginning to outsource activities that are more strategic in nature or

that are more related to the customer." These activities include supply chain planning, information technology, order management, or customer service. "The conclusion we've drawn is that companies that are using third-party logistics services appear to be more interested in outsourcing a broader range of activities than previously," Langley says. Moving along the outsourcing continuum from tactical to strategic may require shifting providers. It certainly will require modifying the way the 3PL is managed. Here's a look at how some companies are optimizing their outsourcing relationships
BMW (SCM)

Car manufacturer BMW is using a service management system as part of a wider plan to improve supply chain lifecycles. The platform introduction was triggered by complexities in the technology embedded in its cars and subsequent demand for systems to support servicing, said Bennie Vorster, the groups vice president of IT solutions and technology standards. We are working on the adaptation of the software to cover new car releases, and updates will be made, he said. Supply chain management continues to be a challenge for manufacturers whatever the sector, Vorster told Computing. Warehouse spaces to handle supply are becoming smaller and firms must deal with issues related to customers requirements for more choice and flexibility. So complexities related to the increasing demand for just in time delivery processes must be met by efficient supply chain management systems, he said. Integration of mobile connectivity between systems and requirements from manufacturers or sales departments translates to short supply chain processes. To avoid inefficiency both in terms of time and space, we dont order parts long before the production time to keep in our warehouses in case a customer orders a car of any particular specification. For that reason, the technology behind the process linking suppliers and manufacturers has to be seamless and as fast as possible, said Vorster. BMW uses SAP as its core platform along with a set of bespoke legacy systems. The organisation is looking at updating some of

the programs managing different parts of its supply chain management process, and uses the Agile peer programming model to speed up delivery process Project management
Production halls and offices for the BMW Works in Leipzig were completed as planned. That was at the end of 2003. Now it was time to step back and take stock. Those responsible for the project took a meticulous look: Was execution of the project efficient and what were its results? Where could time and money have been saved, what could be improved or changed in the future? Project directors and building owners wanted to know exactly and came to the conclusion: "An extremely cost-effective tool."

Crm by bmw

BMW Uses CRM To Aid Service Sales

By Steve Finlay Ward's Dealer Business, Dec 1, 2008 12:00 PM

BMW of North America LLC is trying to keep it simple as it uses customer-relationship management systems to supercharge dealership parts and service sales. We want to move auto parts, not come up with new programs that complicate the world, says Grant Paullo, the German auto importer's manager-aftersales marketing and communications. ADVERTISEMENT

He cites three objectives for leveraging data to increase revenue and build brand loyalty:

Transition dealership customers from the showroom to the service department. Strengthen customer relations. But what we see as strengthening the relationship, and what the customer sees, sometimes differ, Paullo says. Reconnect with ex-customers. This is where we've had the biggest success, he says. We've spent a lot of time on it. Sometimes we've lost customers because of a bad experience, sometimes not.

He says BMW is using company information and data from dealers that they are comfortable giving us to better target customers and enhance promotions. The owner of a 1999 BMW should not get the same service reminder as the owner of a 2008 BMW, Paullo says. Their needs are different.

http://www.slideshare.net/enricomaggi/crm-acceleration-milan-2010-bmw

prject management methods of bmw

Target group Those starting out in the area of project management and staff who wish to handle their project work more effectively and efficiently using the methods of project management. Objectives Participants are able to work in a project-oriented manner. They are familiar with the phases of project work and the roles of those involved in a project. They are also aware of the factors determining successful project work and possible areas of tension within the project team. They learn the methods, structure, sequence, procedures and systems of project management and their areas of application. Content - Basic principles of project management - Modes of action and potential applications - Familiarity with the fundamental methods of a project - Project kick-off - Project planning - Project control - Project conclusion Duration / method 2 days / face-to-face training

https://b2bpapp6.bmw.com/public/en/gdz/logistik/ersatzteile/qualitaet/handbuch_q m_kaufteile/Supplied_Parts_Quality_Management.pdf