CASE: NISSAN CANADA INC

Salman Najib

Abdullah Salman
Rana Noraiz

Alina Rashid
Saba Asher

NISSAN MOTORS-INTRODUCTION
Founded in 1933
Second largest Japanese manufacturer
Troubled in 1990s

High

Costs
Unimaginative product development
$22bn Debt

In 1999, Renault purchased 36.8% of the

company
Carlos Ghosn became COO

NISSAN 180 PLAN

Increased
Revenues

Lowering
Costs

Improved
quality
and
speed

Synergy
with
Renault
Alliance

NORTH AMERICAN AUTO INDUSTRY

Competitive Industry
Increase in International Competitors
Toyota and Honda gaining market Share
Poor sales forecast
Surplus inventory

NISSAN CANADA
170 Dealers

National sales
office and 3
regional sales
office

Car and truck

sales:69,534

4.3% Canadian
Market share

Lack of robust
forecasting tool

Concern of long
lead time

VEHICLE ORDERING PROCESS

Customer
Order Entry (5
days)

order
acceptance (15
days)

Order
Scheduling (23
days)

Logistics (10
days)

Manufacturing
(5 days)

Order
Sequencing (2
days)

60 day Lead
time

INTEGRATIVE CUSTOMER ORDER

NETWORK

3 key Imperatives
Support Nissan
goals
Alignment of core
Increase
practices and
Revenue.
Shift to customer
processes to
centric focus
Lower cost.
Nissan Global
Reduced Lead
Initiatives
time.
Lower Inventory

ISSUES WITH NCI

Poor Demand
Forecast

Excess
Inventory

Excel
Spreadsheets
for planning
and
scheduling

Long order
process and
response
time

ADVANTAGES OF ICON
Easier Global Integration
Real-time Information
Updated data
Inventory optimization using sale forecasting
Revenue tracking will be made easier

DISADVANTAGES OF ICON
ERP and Reengineering required
Costs could be higher to implement
Inflexibility- the program and not provide
organization fit
Implementation is riskier
Extensive Training throughout the supply chain
required
Wait too long to see the effect of program

PROCESS BENEFITS
Closing

27%.

sale rate will improve from 26 to

Stakeholders

become more comfortable as

close rate was expected to be improved
gradually during the first two years.

Overall reduction in days of supply from 24 days

to 20 days

PROCESS SIGN OFF

Financial implications needed to assess costs and
benefits
Development of Implementation plan

Dealer

might not understand benefit of program

New requirement might look unreasonable to
assembly and suppliers.

FINANCIAL ANALYSIS
ICON Financial Impact

LINKAGE WITH THE READINGS

Supply Chain Coordination (with all
stakeholders)
Sales forecasted at individual dealer level in
month advance ( Bottom up approach to
forecasting).
Integrating the supply chain

SUPPLEMENTARY RESEARCH
More than 1.5 million new vehicles are sold or
leased in Canada each year
Automakers spend more than $1 billion annually
advertising
Nissan sells more than 70,000 vehicles each year
in Canadaroughly five per cent of the total
market
In an effort to address the changing needs of
Canadian consumers, in 2007 Nissan launched
the all-new Rogue

CONTINUED
Sensing an opportunity to demonstrate the
effectiveness of direct mail, Canada Post offered
to collaborate on a test campaign.
For the Rogue launch, Nissan Canada and
Canada Post partnered with Generation5,
A marketing-services company that specializes in
targeting.
The partners goal: to encourage people to test
drive the all-new Rogue at a Nissan
dealership.

Thank
You!!!