I bought a new car without test-driving it, waited a month for it to be delivered, and it’s still missing a component – it’s the best vehicle I’ve ever owned.
Who else would have scoffed at this statement a few years ago?
We all know that a multitude of factors have contributed to continued supply chain issues. In 2019, I would have been highly skeptical of the scenario described above but it’s my true story in 2024. Well, it’s mostly true. I didn’t test drive the specific VIN that I own now, but I happened to rent the same model on a business trip that included a lot of driving. That rental turned into an important precursor to my buying decision. And that whole process is a good example of one OEM adapting to modern realities to get their vehicles on the road. If one OEM is doing it, the rest need to pay attention. The example also doesn’t have to apply only to the automotive industry – all manufacturers must adapt to increasing disruption.
How can manufacturers and consumers adjust to a future with supply chain disruption as the rule rather than exception?
Start with the Customer
I had confidence in this specific make and model because I lucked into the car I reserved having a maintenance problem. Before I even knew I would be in the market for this type of vehicle I had a positive association with one make/model and a negative with another that ended up significantly influencing a $XXk decision. When I was in the market, the buying experience was different too. The dealer may have bent a rule by letting my wife peek into the only one of that model they had on the lot, while it was being cleaned and detailed before the buyer picked it up. When it came time to see what our options were, the dealer ERP had an accurate list of available to promise cars that was easily filtered by color, tech features and price. Though I had to wait a month for my car, putting the decision in my hands made me feel like I was in control of the lead time. Finally, when the car was delivered to my local dealership and the paperwork was done, they dropped the news – we’d only get one key. What? Who only has one key to their new car?? Of course, we weren’t going back at that time. And we have no regrets now.
Advice for Manufacturers
Know your customers, and give them a chance to experience your product “in the wild”. The automotive industry may have one of the most obvious examples with rental cars, but they aren’t the only ones. If you know that supply chain issues are delaying delivery times, figure out how you can expose your product to more people faster so they’ll be more comfortable with the wait.
You also need to know what you can deliver, and when. Of course, consumers would love to go home with their purchase but if your entire industry is fighting over critical components then your ability to instill confidence in the timing and quality of the delayed product becomes an advantage in itself. The latest QAD ERP and QAD Digital Commerce enable this selling and buying experience with a modern UX (user experience) for adaptive enterprises around the world – would your sales organization say that your ERP helps or hinders?
Lastly, it’s time to rethink the definition of delivered in full, on time. Do your customers need every last feature in order for you to bill and collect? What are the items – like the second key – that you can ship later? While you consider what those parts are, also think about whether your ERP is adaptive enough to reconfigure what key components are and recalculate everything needed to get more products to customers.
