The Vehicle Allocation module enables the fair distribution of vehicles to dealers.
For each allocation, you specify the distribution strategy (push vs pull). Allocations use either numerical calculations (equalized days supply, percent of sales, equal quantities, market area objectives) or manual entries to determine now many of each type of vehicles should be offered to each dealer. Dealers may specify allocation preferences that the system will fulfill if possible. Allocation calculations are based on previous trends, but also provide flexible mechanisms to account for trend changes in dealers' local markets. Overrides to calculated values are allowed and logged for audit purposes.
The system uses the concept of "Allocation Groups" to flexibly map groups of related sales models together. Different manufacturers use this construct in different ways depending on their individual vehicle configuration requirements. Some have a 1 to 1 correspondence between allocation groups and sales models. Others map multiple sales models into one configuration group.
The push distribution strategy allocates actual vehicles. The allocation groups contain interchangeable sales models. The allocation generates pre-built vehicle orders for vehicles that the dealers can accept or reject. Dealers have the ability to specify port-installed options on each allocated vehicle that they accept as part of the allocation.
The pull distribution strategy allocates "production slots" in manufacturing. The allocation groups contain sales models that can be built within the same production slot. The allocation generates blank pre-built vehicle orders for specific vehicle allocation group vehicles that the dealers can accept or reject. Dealers have the ability to completely specify the attributes of each vehicle to be built subject to production and sales constraints for that vehicle. These dealer orders are used to generate factory orders. Once the factory order is released, the only changes allowed to the order are changes to port-installed options.
Manufacturers using the pull distribution strategy have additional flexibility in their operations. Their primary "pull-based" allocation can be for the month's scheduled production. They can run a secondary "push-based" allocation to move out any left over stock.
If your company is running an ERP system (SAP, as an example) that does not support vehicle allocation, please contact us about our cloud-based vehicle allocation process.