The automotive order to delivery process: how should it be configured for different markets?

The order-to-delivery (OTD) process in the volume automotive sector is important for automakers, dealers and customers. It affects the customer's experience with regard to receiving a vehicle that matches their requested specification in a reasonable time and the costs of the automaker in servi...

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Main Authors: Brabazon, Philip G., MacCarthy, Bart L.
Format: Article
Published: Elsevier 2017
Subjects:
Online Access:https://eprints.nottingham.ac.uk/42311/
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author Brabazon, Philip G.
MacCarthy, Bart L.
author_facet Brabazon, Philip G.
MacCarthy, Bart L.
author_sort Brabazon, Philip G.
building Nottingham Research Data Repository
collection Online Access
description The order-to-delivery (OTD) process in the volume automotive sector is important for automakers, dealers and customers. It affects the customer's experience with regard to receiving a vehicle that matches their requested specification in a reasonable time and the costs of the automaker in serving the market. OTD processes share similarities across major volume automakers. They are substantial in scale with typically a very large number of vehicle variants and involve interactions between customers, dealers and the automaker. Additionally, automotive markets are heterogeneous. Some customers have little tolerance to compromising on specification and/or waiting for a vehicle whilst others are more tolerant on one or both attributes. This study examines how the OTD process should be configured for different markets. A representative simulation model is used with designed experiments and an innovative statistical analysis method to study the impact of nine OTD configuration factors in three different markets. The study shows that market attributes have a substantial bearing on the dominant modes of fulfillment, on customer-centric performance metrics and on automaker costs. The findings have strong implications for automakers regarding how they configure their OTD processes for different markets and whether they focus on upstream, pre-assembly factors and/or downstream post-assembly factors. This is the first study to use a comprehensive and detailed OTD process model, incorporating a wide range of configuration factors, and assess a full range of performance metrics in a designed simulation study.
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spelling nottingham-423112020-05-04T18:41:39Z https://eprints.nottingham.ac.uk/42311/ The automotive order to delivery process: how should it be configured for different markets? Brabazon, Philip G. MacCarthy, Bart L. The order-to-delivery (OTD) process in the volume automotive sector is important for automakers, dealers and customers. It affects the customer's experience with regard to receiving a vehicle that matches their requested specification in a reasonable time and the costs of the automaker in serving the market. OTD processes share similarities across major volume automakers. They are substantial in scale with typically a very large number of vehicle variants and involve interactions between customers, dealers and the automaker. Additionally, automotive markets are heterogeneous. Some customers have little tolerance to compromising on specification and/or waiting for a vehicle whilst others are more tolerant on one or both attributes. This study examines how the OTD process should be configured for different markets. A representative simulation model is used with designed experiments and an innovative statistical analysis method to study the impact of nine OTD configuration factors in three different markets. The study shows that market attributes have a substantial bearing on the dominant modes of fulfillment, on customer-centric performance metrics and on automaker costs. The findings have strong implications for automakers regarding how they configure their OTD processes for different markets and whether they focus on upstream, pre-assembly factors and/or downstream post-assembly factors. This is the first study to use a comprehensive and detailed OTD process model, incorporating a wide range of configuration factors, and assess a full range of performance metrics in a designed simulation study. Elsevier 2017-04-11 Article PeerReviewed Brabazon, Philip G. and MacCarthy, Bart L. (2017) The automotive order to delivery process: how should it be configured for different markets? European Journal of Operational Research . ISSN 0377-2217 (In Press) supply chain management order fulfillment simulation NOLH CHAID http://www.sciencedirect.com/science/article/pii/S0377221717303508 doi:10.1016/j.ejor.2017.04.017 doi:10.1016/j.ejor.2017.04.017
spellingShingle supply chain management
order fulfillment
simulation
NOLH
CHAID
Brabazon, Philip G.
MacCarthy, Bart L.
The automotive order to delivery process: how should it be configured for different markets?
title The automotive order to delivery process: how should it be configured for different markets?
title_full The automotive order to delivery process: how should it be configured for different markets?
title_fullStr The automotive order to delivery process: how should it be configured for different markets?
title_full_unstemmed The automotive order to delivery process: how should it be configured for different markets?
title_short The automotive order to delivery process: how should it be configured for different markets?
title_sort automotive order to delivery process: how should it be configured for different markets?
topic supply chain management
order fulfillment
simulation
NOLH
CHAID
url https://eprints.nottingham.ac.uk/42311/
https://eprints.nottingham.ac.uk/42311/
https://eprints.nottingham.ac.uk/42311/