Nissan Case
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Dave Richardson has to decide if implementing the Integrated Customer Order Network (ICON) project the right business decision for Nissan Canada. He would then need the support from the dealers, assembly plants and suppliers in order to make this plan a success.
Key Issues
The car industry was facing the issue of car manufacturers not having the ability to address limited visibility of true customer demand.
Long Lead times for dealers, the ability to customize a vehicle for the customer on a timely basis.
Giving the national sales organization control over production schedule would make dealers uncomfortable.
The supply chain would have a different approach which could result in an increase in cost.Co
Buy-in of the ICON project would be needed from dealers, sales team, assembly plants, and suppliers in order to make this transformation of business a success for Nissan Canada.
Case Data
The case stated that,”Only 7% of vehicles in the US were made to order versus 19% of cars in Europe, including 60% in Germany and 32% in the United Kingdom”. In stating that it data it shows that Nissan Canada has the capability to increase their made to order quota. In order to increase their made to order quota they must use the necessary tools of forecasting in order to meet their customer demand.
The Manugistics tool would be a solution to not having long lead times. In Exhibit 6 it shows a step by step process the NCIS would follow in performing an order process. This tool would help the sales organization predict customer demand 60 days prior to the customer demand; this would result in a timely response to the customer.
Dave would have to educate the company as well as the dealers, and suppliers on the ICON project. It would be very important that every branch understand the concept of the process in order for them to understand what important role they play in the process. It would be key that training is implementing in each sector in order to make the ICON project a success. In knowing how the process works each sector will understand why national sales organization has the control over the production schedule versus the dealer.
It would be critical for Dave to setup the processing plan to supplier to make sure no extra necessary cost are occurred when developing the ICON project. This plan would have to be cost efficient before making this choice to pursue the project if cost arise over the 20 cent basis. Then, Nissan Canada will know that this is not a direction the company should go into now