Tilburg University Building best practice automotive after sales network Mikolik, Gerlinde Publication date: 2017 Document Version Publisher's PDF, also known as Version of record Link to publication in Tilburg University Research Portal Citation for published version (APA): Mikolik, G. (2017). Building best practice automotive after sales network: The Volkswagen case. CentER, Center for Economic Research. 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Download date: 24. sep. 2021 Building Best Practice Automotive After Sales Network: The Volkswagen Case Gerlinde Mikolik Publications about the content of this work require the written consent of Volkswagen AG. The results, opinions and conclusions expressed in this thesis are not necessarily those of Volkswagen AG. This thesis is subject to confidentiality restrictions. **Publication only after written authorization by Volkswagen AG. Building Best Practice Automotive After Sales Network: The Volkswagen Case Proefschrift ter verkrijging van de graad van doctor aan Tilburg University, op gezag van de rector magnificus, prof. dr. E.H.L. Aarts, in het openbaar te verdedigen ten overstaan van een door het college voor promoties aangewezen commissie in de aula van de Universiteit op woensdag 22 februari 2016 om 10.00 uur door Gerlinde Mikolik geboren op 5 juni 1964 te Resita, Romania. PROMOTIECOMMISSIE: PROMOTOR: Prof. Dr. Ir. Jalal Ashayeri CO-PROMOTOR: Dr. Ruud Brekelmans OVERIGE LEDEN: Prof. Dr. Manfredi Bruccoleri Prof. Dr. Filip Caeldries Prof. Dr. Sebastiàn Lozano Building Best Practice Automotive After Sales Network: The Volkswagen Case Doctor of Business Administration June 2012 / 2016 Gerlinde Mikolik Tilburg University Abstract Purpose – This thesis aims to analyze one of the most economically successful industries in Germany – the automotive industry – in terms of service operations and networks. Research of the automotive After Sales service network lacks the necessary fine details and industrial feed- back. The purpose of this thesis is to present insights and lessons learned from studying the After Sales service network of Volkswagen in order to define a roadmap for further research and to discuss the needs of the sector. Design / methodology / approach – The proposed research methodology relies on extensive external and internal research with a qualitative and quantitative approach. Based on struc- tured, in depth interviews with 108 members of the network, ranging from the main decision makers to specialists involved in the processes of the After Sales service network, and our own direct observation, we arrive at the future After Sales needs of the industry. The objective of the interviews is to highlight the most important activities in the service delivery operations within the network. Using numerical data, Data Envelopment Analysis (DEA) is performed to determine the “efficient frontier” of service operations. From the important elements dis- cussed and the best practices a set of key performance indicators are identified. In order to achieve an in-depth understanding of their general business models a benchmarking analysis was then carried out between six companies from industrial sectors complementary to the au- tomotive business. Findings – From the case study the authors identify the main success and failure key factors to consider in the After Sales service network. The study shows that this sector deals with variety and process complexity that are not so easy to describe. The study additionally indicates that existing models are either outdated or describe only partially the After Sales topics in the au- tomotive industry. Furthermore, relying on current state of the art methods, the thesis high- lights the focus of the research, particularly with respect to the development of a “best prac- tice” network that captures the dynamics of After Sales activities in the light of new technologi- cal developments and the experience gained from the benchmark with other industries. Originality / value – The identification of the success and failure key factors and their corre- sponding technologies, processes and human perspectives is aimed at providing links between theoretical models and practical implications for both academics and industrialists. The chal- lenges and developmental areas for an After Sales service network are proposed in order to provide the basis for new network models that capture the state of the art dynamics and the evolution of automotive After Sales service operations. Acknowledgments Principally responsible for making this research possible is Fred Kappler, Top Manager of Volkswagen Group Sales & Marketing. I gratefully acknowledge the financial support from Volkswagen and, more importantly, Mr. Kappler’s assistance in opening doors to the various departments in the value chain, enabling me to obtain all the necessary information and data for my research topics. I would also like to thank him particularly for his immeasurable aid in overcoming the necessary formalities and administrative hurdles. I would also like to thank my doctorial research advisor, Professor Jalal Ashayeri. It has been an honor to be his Ph.D. student. I appreciate his many contributions, whether time, ideas, or knowledge of other industries, in making my Ph.D. experience productive and stimulating. He was very helpful in shaping the research ideas and establishing contacts to some of the compa- nies interviewed. I would also like to thank him for his patience and kindness in permanently providing feedback and for the motivation to complete this dissertation. Many thanks, too, to the PhD Committee, Dr. Ruud Brekelmans, Prof. Dr. Manfredi Bruccoleri, Prof. Dr. Filip Caeldries and Prof. Dr. Sebastiàn Lozano, for their constructive input before and during the pre-defense phase. I greatly appreciate their input as it has enriched the quality of the thesis and I am very grateful for the time they took in assisting me to achieve my goal. Many thanks too, to all the partners from the retail and wholesale businesses of the Volkswagen organization who were interviewed, as well as to the departments from the Volkswagen Group and Brand involved in the core processes analyzed. The list of at least 200 involved here is simply too long to mention each person individually. My thanks go too to the interview partners in the benchmark phase. For reasons of confidenti- ality it is not possible to mention them here by name. I gratefully acknowledge the administrative support from the CentER, the graduate program of the Tilburg School of Economics and Management, at Tilburg University, which permitted me to undertake this research. I would also like to thank the department of Econometrics and Opera- tions Research for their administrative support and the very interesting discussions. I would also like to extend a big thank you to my boss, Dirk Zimmer, who allowed me to com- plete this thesis and to combine my daily work with the academic research work. For his help in setting up the method for the financial evaluation of the businesses analyzed and for establishing a business case I would like to thank Andreas Quentin, a financial expert working for an international consultancy. I gratefully acknowledge the flexibility and the help of Elaine Hubbard, a native speaker, who kindly proofread every chapter and provided advice on text corrections. Thanks of course to my family, friends and relatives who were very understanding about the limited time I was able to spend with them and still supported me through this endeavor. A final word of gratitude goes to my beloved parents, for their understanding and great sup- port at all times. Gerlinde Mikolik Braunschweig, 12 December 2016 Contents I Contents Contents ........................................................................................................................................... I List of Figures .................................................................................................................................. V List of Tables ................................................................................................................................. VII Abbreviations ............................................................................................................................... VIII 1. Introduction ................................................................................................................................ 1 1.1 Introduction: Service Operations in the Automotive Industry Business - Background and Motivation ............ 1 1.2 Research question .................................................................................................................................. 1 1.3 Literature research ................................................................................................................................