Implementing Build-to-Order Strategies: Enablers and Barriers in the European Automotive Industry

Abstract

Vehicle manufacturers build the majority of vehicles to a sales forecast and links between production and final customer orders are tenuous. A greater percentage of Build-To-Order (BTO) vehicle production may offer the European automotive industry a competitive edge. The EU and industry funded Intelligent Logistics for Innovative Product Technologies (ILIPT) project developed and validated an approach for a five-day build-to-order process. However, there remain significant challenges to be overcome before this innovative model can be adopted. Empirical research was undertaken to capture the challenges faced. Findings illustrate that certain factors need to be considered in managing the transition to the '5 Day Car' in Europe including building on existing good practice, training and re-educating managers in BTO principles and practices, clear planning and objective setting, and enhancing supply chain learning. The study concludes with a guiding framework to help practitioners realise the build-to-order transition.