MICHELIN MFS CASE STUDY

TB tires are service-intensive: This allowed clients to turn all tire-related costs into a variable cost directly linked to the vehicle use. As one sales manager recalled: To request such permission and for further inquiries, please contact IMD at pressroom imd. On this segment, transportation companies play an important prescriptive role as they decide what tire brands should be installed on their trucks. Sales Directors complain to me very often.

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. Should the company pursue this difficult path? They immediately discussed the most recent German sales figures. These were some of the questions the three men had to decide upon in the coming hours, which promised to be tense and intense. To find articles related to executive education, please visit one of the following top searches:. Monitor rubber thickness regularly.

The company now had to decide the future of MFS: B2B companies want to sell profitable customer solutions, rather than focusing on selling products and services only.

Copy of Michelin Fleet Solutions by khaoula Hariz on Prezi

Within only a few decades, truly European players have emerged, and this is micelin to stop considering that 80 percent of European transportation companies still operate with less than 5 trucks. Original Equipment is the original tire fitting on brand-new vehicles. These guys talk another language, and we need to roll out other arguments.

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View a full list of featured cases. They bring an incredible value that the clients immediately perceive.

michelin mfs case study

They are complex and sophisticated products. Service Excellence Marketing Operations Browse all topics. Should Michelin seek sutdy further develop this solution offer, and try to repackage the offer yet another time? This seemed such a good idea to begin with. This case investigates the difficulties that industrial groups face when they transi- tion from selling products to providing service.

michelin mfs case study

While conceptually appealing, mastering the process in real operations is however much more difficult. Our administrative people are micehlin with MFS invoices coming from the service providers. If they recommended pursuing the MFS Program, how could the current turmoil be overcome?

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

It was also seen as a way to build long-lasting relationships with customers and promote brand loyalty. Quality control process with the service provider To facilitate geographical expansion, Michelin decided to rely on service provider networks to deliver the service to customer. This case investigates the difficulties that industrial groups face when they transi- tion from selling products to providing service.

I remember a meeting with a prospect client about six months ago to promote tire solutions. Difficulties went well beyond the contracting phase. Tires must be regrooved by a professional according to Michelin recommendations.

In this respect, capitalizing so much on service provid- ers may be dangerous: Every time a service provider performs any act on a vehicle under contract, he addresses us an invoice. We underestimated by far the costs involved.

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MFS gives us all a headache, and hurts the profit of our division. To facilitate geographical expansion, the company adopted a new approach to service operations: From Selling Tires to Selling Kilometers point where International Strategy Consulting ISC — name disguiseda well-known consulting firm, had been appointed a few msf earlier to help fix the problem. On that point, every branch has their exclusive and homogeneous objectives and supports mutually without any frustration.

A customer could decide to contract only a part of its fleet with MFS, thus granting Michelin exclu- sivity for the equipment mcihelin these vehicles.

B2B companies want to sell profitable customer solutions, rather than focusing on selling imchelin and services only. What recommendations should go to the board?

Just imagine the amount of invoices coming in.

(DOC) Michelin Group 3 | Thomas Nguyen –

The underlying idea was that transportation companies had different priorities depending on the type of goods they transported such as bulk material, time pressured goods, or highly dangerous chemicals. These results were however disappointing.

michelin mfs case study

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.