BMW 2001 Annual Report Download - page 22

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BMW Car IT fits neatly into the international re-
search and development network of the BMW
Group and works closely with the Research and De-
velopment Centre (FIZ) in Munich and numerous
other locations in Europe and the USA. On a world-
wide basis, the BMW Group employed at the end of
2001 more than 8,000 staff (previous year 7,800 ex-
cluding Rover/Land Rover) in this network.
Purchasing benefits from falling raw material
prices
In 2001, the BMW Group purchased approximately
euro 13.2 billion of production materials, of which
some 10% related to raw materials. The Group
benefited in 2001 from falling prices for industrial
and precious metals, in particular those for palla-
dium, rhodium and platinum, which fell markedly fol-
lowing a peak phase.
Expansion of networking with suppliers
The project Supplier Relationship Management
(SRM) was started in the year 2001 with a view to
improving network communication with suppliers.
This involved analysing all processes relating to
networking with suppliers and supporting those
processes with the appropriate internet based tools.
As well as helping to create flexible distribution sys-
tems which ensure timely delivery, SRM also serves
as a basis for designing integrated performance and
result orientated processes in the area of product
development and production.
In addition, a number of new functions were
added to the BMW Partner Web and the range of
information significantly increased. Suppliers are
integrated into the change-management process of
the BMW Group via an online portal, where they
have access, amongst other things, to the technical
specifications and standards of the BMW Group.
e-business gaining significance
In 2001, the BMW Group achieved important mile-
stones in the e-business strategy adopted at the
end of 2000. This strategy covers four platforms to
be established over three years: business to busi-
ness (B2B), business to consumer (B2C), business
to employee (B2E) and business to dealer (B2D).
At present, 28 programmes are being imple-
mented. Key areas of focus are the continuous opti-
misation of the product development process (PEP)
and the acceleration of a customer-orientated sales
and production process (KOVP).
Examples are projects involving customer ori-
entation and business to business: in 2001 the
roll-out of the VirtualCenter, a worldwide e-com-
merce solution for sales support, was completed.
This system, accessible through the internet, con-
sists of six modules, including a car configurator and
modules allowing potential customers to locate
dealers and enquire about test drives. The system
simplifies the decision of a potential buyer seeking
to purchase a new vehicle. The VirtualCenter, de-
signed for both BMW and MINI brand cars and for
BMW motorcycles, is currently used internationally
in 13 markets.
As part of the B2C platform, all activities and re-
sponsibilities for communication with customers
have been brought together in 2001 using an inte-
grated customer relationship management (CRM)
approach, called Top Drive. This integration does not
just relate to the central strategy for providing cus-
tomer service, but also to the underlying processes,
organisational structures and systems. After it has
been implemented in Germany, Top Drive will be
rolled out in stages in the other main international
markets using a standardised process, system and
Regional mix of BMW Group purchase volumes
in %, basis: Production material
Europe
NAFTA
Asia/Africa
6
79
15
Improved communication with suppliers via the
internet. Consistent implementation of e-business
strategy. Top Drive: setting the standard in premium
quality customer service.