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Consultancy / Case Study

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A highly successful new car business had neglected to keep the used car performance at an acceptable level. The challenge was to quickly turn round used car performance without impacting upon new car volumes and profitability.

Using Loyalty Logisitix´s proven methods of continuous improvement; the current state of the business was investigated thoroughly. Once this was completed, the existing employees were organised into a team and coached toward increasing used car profitability and sales.
The four key areas were as follows:
People
All existing staff were interviewed individually to establish competencies and attitudes. This highlighted certain skill set deficiencies and training needs. Also, it established a team-centric approach from the outset.
Product
A Customer and workplace environment review was carried out. This included an assessment of the site and vehicle conditions and also included cosmetics and merchandising. As a direct result of this review, new valeters were appointed and merchandising was refreshed.
Process
New processes were introduced to address pricing, stock turn, presentation and staff re-muneration issues. In house coaching and demonstration of the processes involved gained employee enthusiasm and confidence in the product and the system. This resulted in a measurable and significant increase in volume and profit. The work done with the client has provided a sustainable continuous improvement process that can be managed and controlled locally.
Leadership
LLL consultancy services engenders a culture of empowerment. By providing the vision of clear thinking, two-way communication and implementation which in turn, encourages ownership and responsibility, thus closing the circle.

Three of the key areas from which the client benefited were:
Improved Process
Stock, pricing, preparation and remuneration were key areas to led to gaining the moral and confidence of the staff in presenting vehicles priced and prepared to acceptable retail standards.
Higher Morale
Higher morale was generated by providing the staff with a professional approach to customers with vehicles realistically priced. Individual remuneration packages were also re-negotiated with an emphasis on the professionalisation of the business.
Greater Confidence
This was developed through the synergy of both process and staff morale.
These combinations lead to.
Increased Volume and Profit
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2007 Loyalty Logistix Ltd. All rights reserved Company Registration No. 4991455 Registered in England & Wales VAT Reg No. 840 4605 48
Registered Office: c/o Fraser Wood, Victoria House
Plas Llwyd Terrace, Bangor, Gwynedd, LL57 1UB.
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