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Supply Chain difficulties in the Operational Leasing industry

A case study of ALD Automotive

Written by O. Forslöf, A. Jazic

Paper category

Master Thesis


Business Administration>Supply Chain & Logistics




Master Thesis: This chapter explains how the process of returning the vehicle from the customer to ALD or KVD is structured. The point is to explain the different stages so that the reader can clearly understand the case. 3.1 Supply Chain The supply chain includes all participants Bill or KVD required to obtain vehicles from customers and prepare them for sale at ALD. Depending on the condition of the vehicle, it should be sold as ALD Bil or KVD. ALD Bil only sells vehicles in good condition. They must meet the following requirements: Not any carrier The vehicle must have a complete service history The mileage is less than 100,000 kilometers The vehicle age is not more than three years It must be in good condition to be sold ( Low refurbishment cost) If any of these aspects are not met, the vehicle should be delivered to KVD immediately. The structure of Figure 2 is to obtain an overall view of the chain. The blue line describes the current correct method ALD Bil or KVD that the vehicle can use. The red line describes the chain interruption due to various conditions. However, all routes describe the process of how vehicles are usually transferred through chains. There is one exception; the driver can choose to deliver the vehicle at ALD Automotive. However, the case in this report is to show how all participants can participate, so when explaining the supply chain, the customer's notification of vehicle inspection will not be considered. The next part of this chapter explains the various stages in detail, starting with transportation (reservation and transportation), then the location ALD car, testing department, fleet center, refurbishment, and finally the location ALD Bil. 3.1.1 Transportation The transportation is divided into two parts, reservation And actual transportation. The reservation is made by the customer service department, and Eurotransport is responsible for the transportation. The booking information comes from interviews with Nordea Finance (NF) and the customer service (CS) department of ALD Automotive. NF has its own customers who are located in the same building as ALD and use the same process as ALD when returning vehicles. The job description of the new employee, see Appendix E is also used to understand the work process. CS is responsible for the contact with the driver, especially the return and delivery of the vehicle. There are a total of four CS teams with customers among them. The three groups in ALD divide contracts by workload (for example, the number of drivers and companies). NF has its own customers and is not affected by ALD. The CS group is also responsible for the first sorting between ALD bil and KVD, which is determined by a framework, depending on how many kilometers the vehicle has traveled and its age. This information should be collected from the driver at the second point above. In order to further describe the structure of the working process of CS, Figure 3 interprets it as a staircase with four steps in each time interval. Important time intervals are also shown in Figure 3. This is the step to determine the amount of time required to transport the vehicle to KVD or ALD bil. In Figure 3, the term delivery is used when the driver can get his or her new car at the dealership. EUROTRANSPORT information comes from structured interviews with Eurotransport owners (see Appendix B) and study visits to its headquarters. Collected information about transportation time and how it works. Compare the data with the ALD data to determine its validity. Eurotransport strives to have fully loaded trucks at all times, and they also need to be able to make changes to the transportation at the last minute. Due to these factors, they cannot accurately determine the pick-up and delivery time. Instead, they signed a contract with ALD, which stipulated that the delivery time of the vehicle should not exceed five days. If they are unsuccessful, ALD transportation will be free. 3.1.2 The testing department is located in the same building as ALD Bil, but they are employed by KVD. Information is collected through several semi-structured interviews with two employees, see Appendix D. When the vehicle is delivered to ALD Automotive, the first thing the testing department does is to conduct a more detailed inspection and determine the condition to determine whether the vehicle should be sold at ALD Bil or KVD. The second part depends on where the car is sold. If a car is to be sold on ALD Bil, it must be tested to determine what needs to be done to keep the car in good condition. If the car decides to be sold by KVD, they will ship the car to KVD and let them test it. The difference between ALD Bil and KVD tests is that ALD Bil repairs vehicles, while KVD only publishes the test results. Cars sold by ALD bilis usually need to be refurbished, which is done by Fleetcenter. The testing department is responsible for booking transportation to Fleetcenter. They are also responsible for caring for the vehicle when returning to ALD Automotive after refurbishment. However, this is not the only workload for the testing department. They also need to close all contracts and assist ALD Bil with random chores. Read Less