BMW plans a new distribution system for the 5-series in the US
http://www.4wheelsnews.com/bmw-to-im...-half-of-2012/
Maybe this is to curb the overflow of 5 series sedans on dealer lots
Quote:
|
BMW of North America will implement a new distribution system for its 5-series sedan, resulting in a pool of cars in three locations nationwide. The plan calls for stocking the cars at three central locations. If 10 cars are allocated for a dealer, some of the vehicles will be stored at one of the company’s three processing facilities instead of the dealer’s show room. The advantages are “lower floorplan, better grosses and higher throughput and customer orientation," Peter Miles, senior vice president of operations said. The processing facilities are located on both the west and east coasts and in the south, Miles said without detailing the exact locations of the storage sites. BMW did not provide details on what percentage of the store allocations would be held in the pools. "The basic principle is to make more of the inventory that exists available to sell and to reduce the dealers' floorplan cost," said Miles, according to Autonews. The company conducted a six-month pilot test of the system in 2011 with participation of five dealers in the San Diego region for the outgoing 3-series sedan. In the experiment, around 30% dealerships' 3-series allocation was stored at the central location. BMW says it does not have data on how much was saved on inventory in the dry-run. The success of the tests prompted BMW to implement it on the national level in the second half of 2012, Miles said, adding that dealers could save tens of millions of dollars nationally. He added that the new system will cut the company’s variable expenses. Details of the new distribution system will be disclosed at BMW's dealer meeting in San Diego in February |
Recent BMW News
- It's No Cost - BMW Rolls Out Funny Commercials Highlighting No Cost Ultimate Service
- Fleet of Over 2700 BMW Vehicles Provide Transport for the London 2012 Summer Olympics
- BMW Landshut Plant Wins Best Factory 2012 Award
- BMW Group U.S. Sales Increase 6.1 percent in April 2012
- BMW Lease Wear and Tear Coverage with New BMW Lease Protection Program
- BMW Tests London Olympic Torch in Wind Tunnel
- It's Back: Drive for Team USA Coming Soon to a BMW Center Near You!
- Record Q1 for BMW North America - 13% up on 2011
- BMW Achieves Record First Quarter in Worldwide Sales
- We are live at the New York Auto Show with the X1, M6 and Gran Coupe - See the photos
Latest Forum Discussions
- Need Advice--Help me choose
- What aftermarket exhaust is good for a??
- 193M Wheels for Sale!
- 2006 325i e90 yellow transmission light on!
- Belt-driven Car Wash
- BMW E92 M3 GT at ALMS :: Laguna Seca
- Scratched Rims when going through auto car wash
- How can I make my car sound better?
- Depressing mod story....
- Oil Change Advise Please
January 24, 2012, 8:23 pm
Sure sounds like it plus it would facilitate "dealer" trades because they are all centrally stored.
January 25, 2012, 1:51 pm
I wonder if that will encourage them to stock more variations in equipment. So many desirable things require a special order, and I've never had the chance, for example, to look at a cinnamon brown interior in person.
January 25, 2012, 1:57 pm
I guess you could have a point though. If dealers know that the most popular configs are available to them at the pool they could keep a set of very different configs on the lot to mainly demo the options without risking to be stuck with less desired cars. That is if they can swap freely with the pool.