BMW's Dealer Communication System - the

'Ultimate Driving Machine' behind Phenomenal

Sales in Mexico

BMW Group Mexico is the leader in sales within the luxury car segment. Sales in Mexico were
increasing at a phenomenal pace (up 68% in 2000, compared to the previous year). BMW Group
Mexico was growing very fast and delivery efficiency was in jeopardy. Success was putting a
strain on the information systems. BMW needed visibility on its stock and a centralized method of
information exchange for locating cars and spare parts and coping with larger volumes.

Cap Gemini Ernst & Young created a Dealer Communication System (DCS) Internet web portal
linked to SAP® R/3. BMW dealers can now place orders online - configure and purchase cars,
motorcycles, check parts and prices and receive a confirmation and follow up their orders. Three
DCS´s were developed at the same time and are now in operation – Mexico, Brazil and
Argentina. BMW was one of the first automotive manufacturers in Mexico to use a DCS over the
Internet with SAP® R/3 transactions.

Dealers are now able to track order status, from headquarters throughout the rest of the world.
Supported by the Dealer Communication System, parts orders have doubled, handled comfort-
ably by the same number of staff. BMW is now better prepared to forecast vehicle sales, inven-
tory is streamlined throughout the supply chain giving full information and clarity to dealers.

Client Profile ers. BMW Group Mexico suppliers

In the luxury car segment BMW is the
sales leader in Mexico and holds 30% of
the luxury market. Operations are housed
in Mexico City supported by an 80,000
square meter surface plant (production &
parts warehouses) in Toluca, central
Mexico. This is also the site of an interna-
tional Service School used for training
employees, post-sales, as well as for special
car production.
BMW arrived on the Mexican market at
the end of 1994 in the midst of one of the
worst financial crisis in the history of
Mexico when the peso was devaluated.
Thanks to quality and brand positioning, a
phenomenal increase in popularity in only
6 years grew BMW Group Mexico sales at
an exceptional rate - by 68% in one year
(2000) compared to the previous year.
Business Issues
BMW Group Mexico takes an aggressive
approach to growing its business.
Continuous investment in the country has
been key to producing excellent results
such as its programs with domestic suppli-
increased by 50%, parts exports to other
BMW plants worldwide.
BMW Group Mexico had grown so fast
from 1994 that demand exceeded efficient
delivery capacity. Success in the market
after selling so many cars put an enormous
strain on the information systems.
Authorized BMW dealers operate a 24-
hour, after-sales service organization from
21 cities within the Mexican republic.
Methods for locating spare parts needed
streamlining – did the part exist in stock
at another dealer? The same needs extend-
ed beyond parts – to locating cars. BMW
needed full visibility on its stock and a
centralized method of information
exchange.
Back in 1998, BMW Group Mexico faced
the need for an upgrade in their SAP R/3
application. Among several major com -
petitors, BMW selected Cap Gemini Ernst
& Young since they were the only one
with the approach to solving the issue of
the SAP upgrade plus add more business
benefits. This was one of the fastest SAP
R/3 implementations ever carried out by
Cap Gemini Ernst & Young. The FI, CO,
MM, SD and PP modules were implement-
ed in four months.
BMW AG was running out of time and
needed a worldwide solution for small
subsidiaries/markets, up and running as
soon as possible. The pilot would be
Thailand. Upon review of the Mexican
implementation, it was decided to take the
complete parts module implemented in
Mexico for this project.
Solution
The solution provided by Cap Gemini
Ernst & Young allows dealers to enter a
web site and see the inventory of spare
parts and cars available both through the
dealer network and at the factory. The web
portal permits dealers to go on-line and:
• check parts
• check prices
• configure cars, motorcycles
• purchase cars
• specify quantities and receive a confir -
mation
• track order status through the pipeline
from the moment the vehicle is configured
until the dealer receives it.
Back-office systems (SAP R/3) use SAP's
web-integration tools. such as WebStudio
for the HTML user interface. An Internet
Transaction Server (ITS) was installed to
map web pages to SAP transactions. Cap
Gemini Ernst & Young developed Internet
Application Components (IAC) using
ABAP/4™ for seamless integration into
SAP pages.
The spare parts model solution developed
by Cap Gemini Ernst & Young Mexico
was used as the template for BMW AG
worldwide parts management system for
small markets (Asia, Latin America,
Russian, and some countries in Europe).
BMW was one of the first automotive
brands in Mexico to use a DCS over the BMW management commented that:
Internet. There are three DCSs cur rently in "Working with Cap Gemini Ernst &
operation in Mexico, Argentina and Brazil. Young has given us the proper IT solu-
tions that the business demands to
Cap Gemini Ernst & Young's business make us the Number One leader in the
luxury segment. This level of success
intelligence strategy is helping BMW to
beyond a doubt, can be contributed in
make the best decisions with future plans part to the advantages of the IT pro-
to provide applications management ser- jects. Our main partner for all our IT
vices. projects is Cap Gemini Ernst & Young."
Benefits
Benefits to BMW include:
• full information and clarity to the deal- Written in co-operation with BMW Group
ers Mexico
• the ability to cope with larger volumes
or orders 2002/481/VI-Cap Gemini Ernst & Young
• parts orders have doubled and increased Mexico
in volume 100% (using same number of
staff) Region: Americas
• BMW benefits from a 50% increase in Sector: Product Industries
EEA/ERP – SAP
sales (number of transactions) over the B2B – SC
previous year
For more information, please visit www.cgey.com
• this infrastructure permits responding to
sales without any problems
• BMW can forcast vehicle sales allowing
streamlining of its inventory throughout
the supply chain.
SAP, mySAP and other SAP products and services mentioned herein are registered trademarks of SAP AG in Germany and in several
other countries
No part of this document may be modified, deleted or expanded by any process or means without prior written permission
from Cap Gemini Ernst & Young.
The names, logos and other BMW names of BMW and MINI are registered trademarks and property of BAYERISCHE MOTOREN WERKE
AKTIENGESELLSCHAFT, BMW AG, and they are licensed to BMW de México, S.A. de C.V. and Toluca Planta de Automóviles, S.A. de C.V.
No license to any BMW AG intellectual property has been granted by this document.