Case Study: Auto Manufacturer Uses Wi-Fi RFID To Manage Finished Goods Inventory At Dealer Sites

Due to disparate internal sales systems implemented at dealerships, the client does not have real-time visibility to sales of its $150k-300k financed assets across its dealer network. In addition to the financial loss based on an increased credit cycle, the lack of visibility to sales and receipts taking place in real time delays the downstream order fulfillment cycle, which causes a ripple effect through the entire supply chain.

To keep track of equipment that is sold or leased versus what is available on-lot, the corporate credit team employs third- party auditors to conduct quarterly and semi-annual audits at its dealerships. Not only infrequent and expensive, these audits are logistically challenging for the company and intrusive for the dealers. Auditors cannot determine if any equipment that is not seen on-lot is sold or out for a demo. At any given time, the customer has $5M-$7M in finished inventory that is unaccounted for in dealer audits. One example of unaccounted inventory is the rental/demo equipment that is often not returned on time, contributing to mismanagement of collateral at dealerships.

Read more...