MICHELIN MFS CASE STUDY

Instead of paying a fix amount of money per contract, the payment should be counted on the retread rate of clients who that service provider serves. Case clearing houses IMD case studies are distributed through case clearing houses. You can change your cookie settings at any time but parts of our site will not function correctly without them. TB tires are service-intensive: Though usually considered as a simple commodity, TB tires are highly sophisticated and complex products Exhibits 1 and 2. The consultancy firm conducted a massive training campaign, providing the sales force with new tools such as consistent contracting process and a new client-focused logic, shifting away from a historically strong product orientation. Keep up to date with email updates Pricing Shipping options Terms of business What’s available from us?

Our administrative people are overwhelmed with MFS invoices coming from the service providers. Tensions mostly came from conflicting interests: The Case Centre is dedicated to advancing the case method worldwide, sharing knowledge, wisdom and experience to inspire and transform business education across the globe. The deal would offer customers a number of peace-of-mind benefits including better cost control, fewer breakdowns and less administration. This is also quite a hot topic among scholars and has led to a growing number of publications. It was also seen as a way to build long-lasting relationships with customers and promote brand loyalty.

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To balance the way tires wear out, they are regularly moved to different axles Moving TB tires is a complicated and time consuming job, requiring professional equipment.

It is true that I cannot fully guarantee the consistency of the service we provide throughout.

How does moving to solutions raise multiple challenges throughout the organization e. On this segment, transportation companies play an important prescriptive role as they decide what tire brands should be installed on their trucks.

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What was to be done? MFS is a great solution to create the competitive advantage of the tires in the consolidated market. Some of his MFS team members had also reported they felt looked down upon by colleagues. Our efforts of educating customers show results. Even if Michelin had been working for a long time with service providers, never had the company relied on third-party providers to such an extent. In the meanwhile, an ambitious information system project was launched to support fleet management operations.

Copyright information IMD retains all caase interests in its case studies and notes. Pierre Dupuis was however not at ease with such a quick conclusion.

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Moreover, according to Michelin organization chart, each MFS teams is under supervision of regional sales director as well as MFS director, which increases intricateness of understanding and implementing goals, set by both directors. Vehicle fare per driven kilometer was contractually agreed upon and annually revised. The situation had deteriorated to a. Jonas provided some insight from his operational experience: The product sales teams should concentrate their resources in attracting new potential customers as well as target segmentation.

It is not just about sales! Grey boxes represent MFS team members. A strong teaching note and multimedia material to accompany the case are also critical to ensure widespread adoption.

michelin mfs case study

We need to change the key performance indicators KPI: Retreading means that an entirely new tread wear is applied to the casing; this can be done only once, and is possible only because our casings are very robust.

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The sales force dedicated to MFS had a hard time selling the new solution ,ichelin. Or should it simply be abandoned?

The importance of door-to-door and just-in-time services further reinforces this competitive advantage.

After three years of continuous investments, struggling with implementation issues, and painful lessons learned in the process, results achieved still remained below expectations. This radical move was initiated in with promising growth prospects. They bring an incredible value that the clients immediately perceive. If transportation companies outsource their tire management to Michelin, it is to benefit from this unique expertise.

We underestimated by far the costs involved. Only in a second phase, did they start to see the possible advantages of the MFS offer. In addition, international customers increasingly aim at consolidating tire-related processes across units and countries.

Business Model Innovation: Michelin Fleet Solutions – From Selling Tires To Selling Kilometers

Stucy case lends itself to a very fruitful discussion of the opportunities and challenges involved in designing and rolling out a new business model in a B2B environment. In the meanwhile, an ambitious information system project was launched to support fleet management operations.

michelin mfs case study

At this stage, Michelin should not worry about them become their competitors as their size is not sufficient to provide tire management service to big clients. Absorb obstacle shock Tires undergo great tension. From Selling Tires to Selling Kilometers e.