DaimlerChrysler SA drives B2B distribution and knowledge sharing using Lotus and IBM software

Lotus Development announced at its DevCon 2000 annual developers conference that DaimlerChrysler South Africa (DCSA) has launched a business-to-business (B2B) automobile ordering and distribution system using Lotus and IBM software. DCSA employees and dealerships are using a Web browser-based solution that allows dealers to order a vehicle that matches specific customer requirements, have orders electronically submitted and tracked and efficiently deliver finished vehicles to the appropriate dealership. Called DC Online, DCSA`s B2B solution was developed by Lotus Professional Services with a combination of Lotus and IBM solutions, including Lotus Domino Release 5 (R5), IBM`s DB2 Universal Database software and Lotus LearningSpace distributed learning software.

Through a combination of Domino R5 collaborative workflow capabilities and integration with existing database content, DC Online allows more than 100 DCSA dealers to order vehicles directly from DaimlerChrysler that meet specific customer requirements, significantly reducing automobile stockpiles at dealerships, distribution costs and inefficiencies. The application manages stock and customer information, providing easier access to vast amounts of data for controlling the distribution and delivery of vehicles to DCSA dealerships. With this solution, the DCSA network of dealers orders and manages more than 100 vehicles on a daily basis, producing approximately $3.5 million US in revenue per day, while reducing the inherent costs of processing and distributing the vehicles. In addition, DCSA`s implementation of electronic publishing and information sharing is estimated to save approximately a half million dollars US in faxes and paper.

"DC Online helped us move toward a whole new distribution strategy that focuses on the customer and completely changes how we conduct business and sell and distribute automobiles," said David Burke, CIO for DaimlerChrysler SA. "Lotus` solution enables DaimlerChrysler to have complete and immediate access to customer and automobile stock information to ensure better customer service while realizing greater efficiencies in our distribution channel. DCSA is able to accurately meet customer demand, saving DaimlerChrysler millions of dollars in value chain costs, and providing our dealers with unprecedented access to the information they need to be more productive and to improve service."

As a result of this strategy, DaimlerChrysler SA more accurately matches its distribution cycle to specific customer demands by "pulling" vehicles into the retail chain according to actual, submitted orders rather than shipping a variety of pre-built cars in bulk, which can potentially stock the channel with vehicles that dealers eventually need to clear off the lot. DCSA customers determine specific requirements including desired color, trim and options for vehicles they wish to order. Through the DC Online database, dealers enter customer order information and the submitted order triggers a fulfillment process that leverages the workflow capabilities of Lotus Domino R5. Dealers and DCSA can track each order and ensure that the exact vehicle is being shipped to the appropriate dealer.

The DC Online application creates cost efficiencies such as improved administration, order tracking and stock planning that reduce overall vehicle stock throughout the retail chain and decrease shipping and vehicle storage costs while promoting faster cycle times. Dealers and DaimlerChrysler SA can access critical information about each order to deliver optimum customer service and reduce duplicate orders that can slow vehicle deliveries and increase DCSA costs.

Dealerships improve customer service through efficient information access and knowledge sharing

With DC Online, the DCSA network of dealers can now provide immediate customer service through access to critical information about customers, orders, stock availability, and registration and certification information, all from one familiar, browser-based interface. Dealers enter content without the need for a Web master or technical contact, facilitating rapid information sharing and creating more opportunities to provide customers and employees with accurate data. Lotus Domino R5 makes it possible to link DC Online to existing IBM DB2 databases containing customer information and existing SAP data that dealers need to satisfy inquiries and customer demand.

In addition, DCSA makes it easy for all dealers to interact with the system as a result of the easy-to-use browser-based interface and offers online courses using Lotus LearningSpace, an Internet-based learning platform, to help train all employees to utilize the system. Dealers access the system and train themselves quickly to utilize DC Online features.

"DC Online improves the business-to-business communication between the dealer network and the manufacturer so that we can communicate, as staff members, to our customer base to tell them exactly what DaimlerChrysler is doing for the customer," said Hein Lorentz, principal at McCarthy Randburg, a DCSA automobile dealer. "The application eliminates the paperwork and information access hurdles involved in interacting with DCSA, the customer and the salesperson. Lotus has given us the power to provide a much higher level of customer service since the customer always knows where the vehicle is in the distribution process - the status of the vehicle and what features are included in the vehicle."