China Grand Automotive Services, Co., Ltd
Customer Snapshot: Overview
5 million repairs performed in 2014
It’s hard to be a small fish in a big pond, and for China’s small auto dealerships in today’s climate it’s getting even harder to stay competitive. China Grand Automotive (CGA) has been spearheading an effort across China to consolidate small auto businesses into one central company to help ensure the success of the individual dealerships.
The company was looking to enhance the customer service experience across the entire sales cycle and wanted to build an end-to-end solution supporting the CGA enterprise from wall-to-wall. They looked to SAP to help their business Run Simple. By following the One Service methodology and utilizing the power of SAP One, now all arms of this massive company are operating under one centralized system, paving the way for a smooth ride for all.
China Grand Automotive Services, Co., Ltd
80 billion yuan (US$12.9 billion)
Line of Business
SAP BusinessObjects business intelligence (BI) solutions, SAP Business Warehouse, SAP Dealer Business Management, SAP ERP, SAP HANA, SAP Solution Manager, UX design services from SAP
Customer Snapshot: History
Focusing on midrange and premium segments, CGA is a national automobile dealership network which represents 50 local and international brands and sells, leases, finances, and services cars. The company operates in 23 provinces, autonomous regions and municipalities, owns 482 outlets, and represents over 50 passenger-vehicle brands.
Customer Snapshot: Business Model
China Grand Auto Has China Covered
China Grand Auto capitalizes on the business opportunities arising from the used vehicle markets in China to grow their used vehicle trading agency services. They also launched several innovative businesses like “Grand Auto Certified Used Vehicle” services and Grand Auto used vehicle online trading platform, which improve their comprehensive strength.
Customer Snapshot: Success Strategy
From Sales to Maintenance—One-Stop Shopping
With their large scale of operation and extensive sales network, China Grand Auto is well positioned to provide customers with one-stop services covering the lifecycle of vehicle services, including vehicle sales, vehicle leasing, used vehicle, repair and maintenance and commission-based agency services. With an integrated operation platform, their scale of business and results of operations have experienced a stable growth, which further strengthened their leading position in the passenger vehicle dealership and services market in China. Their comprehensive business operations are well recognized in the industry.
Creating One Unified System
Standardizing processes across many local auto dealers and service centers to one consolidated vehicle dealership and services company provides numerous advantages to the clients and local owners. To enhance those benefits, CGA was looking to create one back-end to front-end, wall-to-wall system that could unite the customer experience with back end systems and capabilities. CGA looked to SAP for a single Run Simple approach to create an effective user experience for everyone involved in the sales cycle, from customers to employees and beyond.
A Design Team with a Vision
For a company to perform more than 5 million auto repairs in a year, they need to have an efficient, user-friendly system at all points from consumer interaction through to back office systems. CGA approached the Design & Co-Innovation Center from SAP looking to innovate the entire user experience, starting with the pre-check process when a customer brings their car to be serviced and maintained. SAP took the insights gained at the point of sale origination and extrapolated processes that could be made more efficient across the entire company stratosphere.
SAP helps us to better serve our customers in the front office and better manage business administration across finance, controlling, human resources, and procurement in the back office.—Cheng Liu, IT General Manager, China Grand Automotive Services Co. Ltd.
Enter SAP: The SAP Experience
After 2 weeks of on-site research and more than a dozen interviews with people at all levels of the service chain, the design team not only came back with a Run Simple design, they were able to port that framework across the entire system architecture. Data collected at the service point could now provide insights and tools all the way at the top level to give CGA transparency over dealer operations across China.
10 months: from initiation to implementation by 1,500 users
Best Practices Lead to Better Decision-Making
With Global Best Practices implemented at every level, processes have been automated at every level. This has led to amazing transformational results, from the sales and lead-generation process to real-time inventory levels for service centers, all the way through to automated accounting processes and improved business intelligence (BI) at the management level.
I feel this will transform the way our people perform service because it’s grounded in the understanding of the user.—Cheng Liu, IT General Manager, China Grand Auto.
Better Business: Benefits
An Easier Road for Customers
When the design team leveraged mobile technology to help customer intake at the POS, they knew they were onto something big. The insights gained from UX sessions filtered all the way through the system to impact sales, inventory, service, HR, accounting and more. But the big bottom line is the increase in customer satisfaction. With more efficient processes in place, the customer journey is now a smooth ride.
Better Business: Run Simple
To maintain and extend its leadership position in automotive retailing in China, CGA wanted to gain better governance of dealer operations. Through their partnership with SAP and the collaboration with the Design & Co-Innovation Center team, they were able to introduce standards across its almost 500 dealerships. Another goal was to establish a framework of key performance indicators (KPIs) to allow for performance analysis across brands, stores, and staff. With these optimized processes in place, CGA has insight into group synergies, and can improve cost control and management. More powerful data and an integrated system now help CGA Run Simple thanks to SAP.
The Road is Paved for Change
CGA now has insight into sales performance on a macro and a micro level. They can dice up data by brand, dealership, region, and even individual mechanic to benchmark sales performance. CGA can now focus their energy and channel efforts on the areas that need shoring up to support their dedication to continuous improvement, keeping the company in its position of leadership in China and the world.
CGA has plans to extend its share of the market from 3% to 5%