BMW Gives Consumers Exactly What They Want
Topic Marketing Channels, Distribution, and Supply Chain Management
Key Words Customer service, logistics, supply chain
InfoTrac Reference A107526329
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News Story 

Part of BMW's success comes from the unique way in which it gets cars from the factory to the consumer. Whereas the Big Three automakers mass produce new-model vehicles and ship them to local dealerships where they sit until a buyer comes along, BMW's unique ordering system reverses the process, allowing the customer to order a vehicle before it even exists.

Car shoppers visit BMW showrooms to custom order vehicles, selecting from a broad range of customizable features. Once an order is placed, BMW's special Spartanburg, S.C. manufacturing facility goes to work to manufacture that vehicle. While it would be reasonable to suppose that BMW's process significantly slows vehicle production and delivery time, the company has streamlined its logistical processes, enabling its factory to churn out customer-specified vehicles within a mere 10 days of receiving an order.

BMW has earned its reputation for producing the highest quality car with the highest level of customer service. However, without its unique strategy for managing the supply chain at its production facilities, the company would not be able to deliver its esteemed luxury models to consumers at a reasonable time or cost.

Questions
1.

Why is BMW able to offer a wide range of customized features on its luxury cars without significantly slowing down delivery time or inflating its costs?

Source David Maloney, "Destination production: BMW's Sequence Center assures that the right parts get to the right places at the right times," Modern Material Handling, August 2003, v58 i8 p29(3).
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