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2018 BENCHMARKING
FOCUS DAYS OVERVIEW OF 2018 FOCUS DAY PROCESS AND SESSION DESCRIPTIONS
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2018 BENCHMARKING FOCUS DAYS
WHAT IS A FOCUS DAY?
After our annual conference, we often hear from attendees that they got a lot out of the sessions, but in some cases we only scratched the surface. Focus Days provide opportunities for Subject Matter Experts (SMEs) to drill down to a level of detail that is not possible in a large group setting. Each day is devoted to a single topic of interest.
HOW ARE FOCUS DAY TOPICS SELECTED?
Steering Committee Members meet each year to select the topics for the coming year. Prior to deciding, the Steering Committee is presented with topic suggestions we have received from multiple sources. While the Steering Committee selects the topics, participating subject matter experts (SMEs) decide on the specific areas of focus.
WHAT IS THE FORMAT?
Focus Days are generally content-rich all-day sessions, that start first thing in the morning and end in the late afternoon. Occasionally, we plan, in advance, for these to extend beyond one day (e.g., RIM Focus Day). The room is set up with tables and chairs organized in a U-shape, so everyone can see the screen and each other. A senior member of the Carlisle team facilitates the discussion, but individual SMEs present their specific case studies. There is a lot of open discussion throughout the day. The evening before the meeting, Carlisle hosts either a reception or dinner, which provides SMEs an opportunity to meet one another and break the ice.
WHO CAN ATTEND?
To make this work, there should be no more than two attendees per company. All attendees are expected to be SMEs who will contribute to the conversation – no bystanders. We limit attendance in order to maintain a relatively small and intimate group where people feel comfortable talking openly and sharing information.
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WHAT PREPARATION IS REQUIRED?
Generally speaking, SMEs are asked to complete a questionnaire and develop a few presentation pages prior to the meeting. The questionnaire includes questions that all participants answer, which helps to provide an overview of what’s going on in the industry. Presentation pages are developed by the SMEs to help them share their case studies with the group.
IT SOUNDS LIKE THIS INVOLVES A SIGNIFICANT AMOUNT OF TIME, EFFORT, AND COST. IS IT WORTH
IT?
We started offering Focus Days in 2011. Since then, we have hosted well over 30 of them. Attendees have rated nearly all of them with 100% satisfaction. Anecdotally, we have heard from many participants that their ROI was very high.
WHAT’S THE FOCUS DAY PLAN FOR 2018?
Below is the general Focus Day timeline. Focus Day preparation begins about four months before the meeting will take place. Carlisle will start the process by reaching out to SMEs for learning objectives and to select a meeting date.
On the following pages, there are descriptions for each of the planned Focus Days.
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AMAZON THREATS AND OPPORTUNITIES February 2018 (North America)
It seems like a day doesn’t go by without thinking or hearing about Amazon. If they’re not in the news, you are probably buying something from them. If you live in a major metro area, you may even be getting one-hour delivery service. Clearly, Amazon has figured out the logistics that lead to customer satisfaction. At the same time, they have been expanding their product offerings – clothing, food, and motor vehicle parts. They are selling a lot of motor
vehicle parts. If that’s not enough, they are also providing services to install the parts they sell. Where is all of this going and what does it mean for OEMs’ business models? What does the SWOT analysis look like and how can we counteract the erosion to our business? Participants at this session will receive a comprehensive report and analysis on Amazon, resulting from extensive research to be conducted by Carlisle. Following the report out, we will have a discussion about ways in which OEMs can compete against this behemoth. This focus day will be unique, in that both parts and service SMEs are encouraged to attend so that we approach this topic with an enterprise perspective.
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RETAIL INVENTORY MANAGEMENT (RIM) March 2018 (North America) Retail Inventory Management is a key lever to achieving high off-the-shelf fill and end-customer satisfaction. That’s why we have conducted sessions on this topic every year for over a decade. Participants continue to get value from the increasingly detailed discussions about the current state of the industry, so much so that the session now spans 1.5 days. This year the group will have many possible areas to explore.
They include:
Metrics – continue the ongoing effort to standardize metrics, including off-the-shelf fill
Terms and conditions – what works to increase dealer participation and penetration
What’s new – learn who has modified their systems or implemented a new solution in the last year
Supply chain improvements leveraging RIM
POS data – how it’s being used upstream for inventory planning, marketing and sales, etc.
Proactive stocking – better performance for new parts and other parts with low sales
Demonstrations – see features and interfaces of other RIM systems
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PACKAGING AND SHIPMENT CONDITION May 2018 (North America) We all think about packaging at some point, whether it’s when we receive a damaged package at home or when we have to dispose of (i.e. recycle) all of those packaging materials. Within service parts, packaging consumes significant resources and our packaging solutions impact the customer experience when parts get damaged or when packaging materials have to be disposed of. We have conducted focus days on this topic in the past, but we plan to take a different approach this year:
1) We will dig deep into commodity-specific damage rates and take the time to understand the things that drive differences in performance. Among the factors we will consider are packaging materials, internal vs. external packaging processes, network flows, transportation modes, overpacking & containerization, dealer storage & handling, and OEM policies for damage claims and the associated remediation. 2) There will breakout sessions, where groups will be formed around specific industry segments (e.g., automotive, heavy equipment, powersports). Each group will address their specific issues and pain points associated and share ideas for overcoming them. 3) We will see a packaging operation (via either an actual tour or a virtual one), which will lead to discussion about operational best practices. As always, we will tailor the agenda and discussion to address the key issues that SMEs are most interested in.
***Session to occur in parallel with the Warehouse Quality session, allowing some time for both groups to spend time together discussing issues impacting both groups.
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WAREHOUSE QUALITY May 2018 (North America) Customer service is a primary area of focus for most OEMs, even more so now than in the past. The competition is fierce and if we don’t get it right the first time, someone else may get the business. A key element of customer service is quality. As an industry, long-term quality improvements have been impressive. Yet, given the volumes shipped, low error and damage rates still lead to many dissatisfied customers. This session is intended for SMEs to share the things they’ve done in the recent past to improve quality. The range of possibilities is endless, from new ways to count parts to new ideas for handling damage-prone parts. Each participating OEM will be asked to bring at least three such ideas to the table, along with their unsolved challenges for discussion and input from industry peers. Attendees can expect to leave the session with a list of actionable ideas that they can implement when they return to work.
***Session to occur in parallel with the Packaging session, allowing some time for both groups to spend time together discussing issues impacting both groups.
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SUPPLY CHAIN LEADERS September 2018 (North America) Join us for an exclusive senior executive roundtable focused on the most pressing issues we
are facing in the aftermarket parts business. This is an open forum discussion of complex
issues that are top-of-mind to supply chain executives. We will work directly with the
executives to prioritize the most
important issues that keep them up at
night and then facilitate a no holds
barred discussion about how each
company deals with the issues. This is
an open exchange of both problems
and new ideas in a closed door
session, limited to only senior
executives. We hold two of these
sessions annually – one at the NAPB
conference and this all-day Focus Day
about six months later. We also
include dinner with the senior executives attending the Focus Day to encourage deeper one-
on-one discussions around topics of specific interest. This is an excellent opportunity to learn
from your peers and share ideas. It helps you learn creative solutions to your most pressing
issues and provides insight into things that you probably should be thinking about if you aren’t
already.
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AFRICA & MIDDLE EAST STRATEGY September 2018 (Likely to be held in Dubai) Africa & the Middle East continue to be attractive regions for automotive and heavy equipment OEMs; yet, they also represent a set of difficult challenges that no one OEM has solved. This will be an in-depth dive into the key challenges, strategies, and future plans for these two rapidly-growing markets. This is a follow-up to a roundtable session at the 2017 EPB Conference and will likely take place in Dubai. The goal of the Focus Day is to bring together industry experts from various OEMs so that all participants can learn from one another and come away with actionable items for their company. The scope of the Focus Day will include all countries in both Africa and the Middle East, with discussion focused on the less-developed markets. Key areas of discussion are likely to include the following:
Distribution Networks
Supply Chain Costs
Service Standards
Customs Processing
Label Translation
Trading Bloc Benefits
Warehouse Strategy
Fill Rates
Transportation & Logistics
Reman Capabilities
Supplier Management
Distributor Management
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DATA ANALYTICS September 2018 (North America) “Doing data analytics” is a challenging endeavor for OEMs. It is a technically complex and
difficult to communicate process, involves nuanced organizational trade-offs, and has unique
hiring and retention dynamics. All of these issues make formulating a business case to form a
group and then select high-ROI initiatives far from simple, and too much to cover in a traditional
NAPB session. As a focus day, we will first determine what aspect of the data analytics challenge
to concentrate on given SME
availability and interest, as
multiple people in different parts
of the aftersales organization are
often stakeholders. From there,
OEMs will prepare and present an
overview of how they tackle the
macro issues of organization,
people, and data & technology,
and then present a case study on
the selected area of
concentration.
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EV BATTERY DISTRIBUTION AND REMAN October 2018 (North America) The rapid move toward vehicle electrification is all over the news. Several OEMs, including
Volvo Car and JLR, have announced that in just a few years all of their models will have some
form of electrification. So, while electric vehicles represent a small share of the car parc today,
this is going to be changing quickly. With that change comes the challenge of distributing
battery packs. These large battery packs create a unique challenge from a service-parts
perspective. For starters, they are considered hazardous materials, which means they have
special storage and handling
requirements. They also present
transportation challenges, since these
parts are much larger than what we
typically ship on our DDS routes and
are probably ineligible for airfreight.
Will dealers stock these parts or
expect next-day service to support
customer demand? What is the best
supply chain solution? We also need
to consider the reverse logistics, since
these parts will likely be
remanufactured at the end of their useful life. Rather than each OEM individually thinking
through all of the challenges and possible solutions, this Focus Day presents an opportunity for
OEMs to share what they’ve done so far and discuss the issues that remain unresolved. By the
end of the day, we may even discover that there are ways to collaborate on a solution to some
of the more confounding issues.
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PART PROLIFERATION/LIFECYCLE MANAGEMENT November 2018 (North America) Most OEMs have forecasting and inventory management tools that are effective for parts that
have a stable history of demand and are not yet in decline. Where these tools are less effective
is in the early and late stages of
a part’s life. At the beginning of
a part’s life, it is fairly common
for OEMs to look at the
historical demand for similar
parts in order to generate an
initial forecast. Yet, when
looking for the root causes of
excess & obsolete (E&O)
inventory, the initial buy
quantity is often high on the
list. Early in a part’s life, after
the initial buy, supersessions
further exacerbate the E&O problem. What are OEMs doing to control the supersession process
and minimize the inventory impact?
Late in a part’s life, suppliers often exit the business and we have to make a bridge buy while
resourcing the part or make an all-time buy. Some companies have virtually eliminated all-time
buys. What are they doing instead? How does 3D printing fit into the late-in-life parts strategy?
During this session we will explore the issues associated parts in the beginning and end-of-life
stages of their lifecycle. We will learn what OEMs have done to maximize fill while minimizing
inventory investment and risk. We will also discuss the ever-challenging issue of minimizing the
creation of new parts in the first place.
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CARLISLE BIO AND CONTACTS Carlisle is a private, global strategy and implementation consulting firm focused exclusively on
the motor vehicle industry. Global OEMs in the automotive, agriculture, construction, heavy
truck, and power equipment sectors have been coming to us for over 25 years because of the
value we deliver as specialists. They depend on our in-depth research and benchmarking, our
insightful advice, and our customized training and business process support to optimize
performance in dynamic times. We’ve built our reputation on our history of performance. Yet,
it’s our rock-solid reliability, our strong values and culture, and above all, the quality and
creativity of our people that really sets us apart.
Our mission has always been, and continues to be, helping our clients improve their ability to
compete.
CARLISLE & COMPANY, INC. 30 MONUMENT SQUARE
SUITE 225 CONCORD, MA 01742
(978) 318-0500 – PHONE (978) 318-0642 – FAX WWW.CARLISLE-CO.COM
Michael Sachs ext: 151
Karin Kliger ext: 103
Jessica Shea ext: 150
Alison Goffredo ext : 152
