Managing the Transition to the “5-Day Car” in Europe

Abstract

As industry executives acknowledge, at present there is little evidence of a relationship between car production and the actual orders being generated in sales rooms. This reality has significant implications for customer satisfaction, the industry cost base and future competitiveness. Many executives think that build-to-order (BTO) concepts and practices offer the European automotive industry one of the best opportunities for survival. However, there are significant challenges to be overcome to achieve the BTO transition. In this chapter, key enablers and barriers that will govern the supply chain transition to a BTO business model for the European automotive industry are explored. Research was undertaken at a number of dissemination events regarding the implementation of BTO concepts, attracting top executives from around Europe, and has provided valuable insight into the possibility of an industry transition to BTO. The findings of this study are presented and the chapter goes on to discuss some of the key factors that industry leaders will need to consider in managing the transition to the “5-day car” in Europe including building on existing examples of good practice; training and re-educating industry leaders and the workforce in BTO principles and practices; clear planning and objective setting; enhancing supply chain learning; aligning performance and accounting practices; and communicating and benchmarking progress.