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BMW auctions to dealer base via Lotus

By PR Connections
Johannesburg, 18 Oct 2000

Vendue, the French for "sold", seems the most appropriate name for BMW South Africa`s vehicle "defleeting" and auctioning system. The pilot project for Vendue rolled out in May this year, operating with four dealers only to test the application, before it was rolled out to the entire BMW dealer network on 1 June 2000.

BMW had a Microsoft Visual Basic application prior to the Lotus installation, and, according to Oscar Rozario, Lotus Development project leader, it meant that dealers had to download an entire application across the Internet before any transactions could take place.

Lize-Marie Verhoef, sales processes and systems manager at BMW SA, explains that the Microsoft system failed to meet all BMW`s requirements. "Firstly it was slow due to the downloading of an entire application across the dealer network and we also found it unstable with frequent errors on the dealers` side. But possibly the biggest difficulty we faced with this system was the fact that each time we required an update or change to the system, no matter how minor, we had to re-install the modified application to each individual desktop."

After a year of being unable to make the system work satisfactorily, BMW gave three companies 48 hours in which to come up with a solution to their current problems, or suggest a more effective system. "Given the time frame, Lotus provided us with the best option," says Verhoef. "What further impressed us was the fact that they did not only send one sales person but brought in a team of four, consisting of a senior consultant, technician, platform specialist and an architecture specialist." This was the birth of Vendue.

BMW SA operates a substantial company fleet, in which the cars are driven for a period of nine months or 20 000 kilometres. At that point the cars are withdrawn from the fleet, checked and repaired if necessary, and then put on auction to BMW`s 66-strong dealer-network via Vendue.

The auction site is housed at BMW, and each dealer is offered access via a browser that connects directly to the system. "This clearly allows for a more even distribution of sales than the previous method, as the dealer in Ladysmith is provided with the same buying opportunity as one in Johannesburg," explains Rozario.

Vendue is a Lotus Domino Web application, allowing BMW`s dealers to log on to a secure site and place their bids for the cars on auction. "It connects to Oracle and DB2 tables to verify vehicle information and enables BMW to track what has been sold, to whom, when, and at what price," elaborates Verhoef. "This leaves no room for error as everything is recorded." The auctioning process involves placing cars on the site, with dealers bidding for cars via the browser. "The site displays information such as colour, mileage, features and more, including information on Motorplan, BMW SA`s service and maintenance programme," says Verhoef.

By midday, for example, the dealer might reconsider and decide to increase an original bid, with the system automatically storing that information. At the end of the given auction, Vendue calculates the highest bid and notifies the successful dealer. The information is also automatically sent back to Notes from where delivery procedures started.

An employee of MNR, also responsible for additional company systems, performs first line support for BMW. "We already had an existing relationship with this company and it was thus easier to send their representative to Lotus for training. She now has the expertise to make adjustments to the system and provide basic, first line support," adds Verhoef. "Lotus is always available to us on a consulting basis, should we be in need of specialised assistance."

The first enhancement to Vendue was performed this month, and went smoothly. "With this application BMW is able to modify certain aspects of the system from a central point, making it accessible to the dealer channel immediately," says Rozario.

"Enhancement and customisation form an ongoing process with Vendue, making it imperative that the system is flexible. It has proven fast, easy to modify as well as stable, meaning that not only do we save time but also money on maintenance and support - we ask for nothing more," concludes Verhoef.

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