Built To Order Percentage

mmeads · 03-08-2006, 03:15 PM

There's a discussion headed south over at the BF forum, and I'm curious as to if anyone here might now the answer.

Anybody have a clue how many BMW's (even better, e9x's) are built to order as opposed to picking them off the lot? Are there stats anywhere concerning this?

thanks!

sdorn · 03-08-2006, 03:17 PM

Sounds like an interesting poll. Why not start one?

3aficionado · 03-08-2006, 03:19 PM

The only info I have seen dates back to 2003 BusinessWeek article about Minis & BMWs. At the time they stated 50% of minis were built to order and 40% of US bound BMWs were built to order. 80% of European orders were built to order. This was 3 years ago but I’m sure you can Google it. I would be interested in seeing recent stats if someone has a source.

mmeads · 03-08-2006, 03:19 PM

Good point, that's a great idea for a poll. I'll figure that out. But right now I really curious about BMW NA statistics.

shimshimhada · 03-08-2006, 03:21 PM

Probably like 9 to 1.

Karmøy · 03-08-2006, 03:22 PM

I think the most of them are special order/equipet by owner...

shimshimhada · 03-08-2006, 03:24 PM

Quote:

Originally Posted by Karmøy

I think the most of them are special order/equipet by owner...

Well technically, ALL of them are special ordered. Dealers just choose the options that they think will sell the best in their area.

mmeads · 03-08-2006, 03:25 PM

Quote:

Originally Posted by shimshimhada

Well technically, ALL of them are special ordered. Dealers just choose the options that they think will sell the best in their area.

True, I guess the real question should be, how many are sold orders, a.k.a. priority 1?

3aficionado · 03-08-2006, 03:26 PM

This article claims BMW builds to order 6 out of 10 cars:
http://www.economist.com/surveys/dis...ory_id=3127250

Maybe my original numbers were wrong or outdated.

Still interested if BMW Group has this info available.

mmeads · 03-08-2006, 03:30 PM

Good leg work, i'd seen quotes from that article but not the whole thing. The only problem is that's a couple of years old. Perhaps they've changed their business model a bit in the last couple of years?

3aficionado · 03-08-2006, 03:38 PM

From what I've read BMW is moving more to the JIT* - BTO model... Just in Time and Build To Order. This way BMWs suppliers are supplying just the parts they need in time to fulfill the orders that are being placed which are guaranteed sales. If anything I would guess the build to order numbers are higher since the article.

Of course no company can successfully pull off 100% build to order since consumers still want to test drive the cars. And there are always some customers who want or need it now so they buy what’s available instead of waiting 3 months for a built car to make it to the US. Once you get above $40k and have a build to order option I think most buyers are willing to wait a couple months to get exactly what they want at no extra cost.

I do think the Europe build to order numbers would be higher than the US. In Europe they may have to wait a month or less for the exact car they want. In the US a 3 month wait could cause some people to buy off lots. My link above touched on this and BMWs solution.

*Source where I read about BMWs JIT plans using mySAP Automotive:
http://whitepapers.silicon.com/0,390...000626q,00.htm

E90Fleet · 03-08-2006, 04:10 PM

BMW does use JIT, for most parts they only have 30min worth of supply at the factories.

All Factory cars are built to order, atleast what the dealers ordered.
BMW AG keeps NO stock
If the dealer doesn have a customer yet, they still get the car accordng to how they sepec it.

Dealers get a allocation, and have to take that allocation even if they dont have a customer for it yet

shragon · 03-08-2006, 04:12 PM

yep, should start a poll.

mine wasn't.

3aficionado · 03-08-2006, 04:15 PM

Quote:

Originally Posted by shragon

yep, should start a poll.

mine wasn't.

There is a poll here: http://www.e90post.com/forums/showthread.php?t=14620

Currently it is 72% built to order and 28% off the lot after 42 posts. But I still would like to see actual numbers from BMW Group.

mmeads · 03-09-2006, 08:38 AM

Quote:

Originally Posted by E90Fleet

...Dealers get a allocation, and have to take that allocation even if they dont have a customer for it yet

Serious? Wow! That stinks for the dealer. Hope they forecast well.

So I guess when dealers through you the line "Why would we sell you a car at XXX over invoice when we could sell it so someone else for MSRP..." you could just say, "Or you could just eat the inventory allocation when you don't meet your sales goals."

sdorn · 03-09-2006, 08:50 AM

Quote:

Originally Posted by mmeads

Serious? Wow! That stinks for the dealer. Hope they forecast well.

So I guess when dealers through you the line "Why would we sell you a car at XXX over invoice when we could sell it so someone else for MSRP..." you could just say, "Or you could just eat the inventory allocation when you don't meet your sales goals."

You'd have to be a dealership where they have that problem.

3aficionado · 03-09-2006, 12:49 PM

Quote:

Originally Posted by mmeads

There's a discussion headed south over at the BF forum, and I'm curious as to if anyone here might now the answer.

Anybody have a clue how many BMW's (even better, e9x's) are built to order as opposed to picking them off the lot? Are there stats anywhere concerning this?

thanks!

What’s the conclusion on the other board? Did our poll or info come to the same or different conclusions as the others?

mmeads · 03-09-2006, 02:38 PM

Oh yeah, they were just quoting the Economist Article. No direct stats from BMW have been found yet.

sblument · 03-09-2006, 08:51 PM

The users (especially the active ones) of this site are likely not the typical, majority BMW customer. This site is populated mostly by automobile enthusiasts. This is borne out by the # of us who drive a standard transmission -- there is a poll somewhere here and it is nearly 50%. My dealer (Fields BMW of Northfield, IL) says only 2-3% of his cars are sold with the standard transmission.

3aficionado · 03-09-2006, 10:22 PM

Quote:

Originally Posted by sblument

The users (especially the active ones) of this site are likely not the typical, majority BMW customer. This site is populated mostly by automobile enthusiasts. This is borne out by the # of us who drive a standard transmission -- there is a poll somewhere here and it is nearly 50%. My dealer (Fields BMW of Northfield, IL) says only 2-3% of his cars are sold with the standard transmission.

What does the percentage of manual transmissions on this site have to do with the amount of people who order their 3 series?

We all understand this is an enthusiasts site so the amount of orders is higher than the average community. Its also understood European buyers order more often than NA buyers as European orders only take a few weeks. Also, enthusiasts drive manuals more often. But I still don’t get what the percentage of manual transmissions has to do with the question mmead has proposed?

03-08-2006, 03:15 PM	#1
mmeads Private First Class 5 Rep 172 Posts Drives: Join Date: Dec 2005 Location: H-Town iTrader: (0)	Built To Order Percentage There's a discussion headed south over at the BF forum, and I'm curious as to if anyone here might now the answer. Anybody have a clue how many BMW's (even better, e9x's) are built to order as opposed to picking them off the lot? Are there stats anywhere concerning this? thanks! __________________ m\|m e90: 325i/SG/Terra/Alum/6sp/ZSP/Xenon/Sirius//
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03-08-2006, 03:17 PM	#2
sdorn Lieutenant 26 Rep 491 Posts Drives: 2006 Jet Black 325i Join Date: Feb 2006 Location: Atlanta iTrader: (0)	Sounds like an interesting poll. Why not start one? __________________ 2008 Sparkling Graphite 535i 2009 Land Rover LR2 2003 Porsche 911 Turbo (SOLD) 2006 Jet Black 325i (SOLD) 2001 Bullitt Mustang (450rwhp - SOLD)
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03-08-2006, 03:19 PM	#3
3aficionado Captain 17 Rep 710 Posts Drives: 02 M3/RRover Super Join Date: Oct 2005 Location: Los Angeles iTrader: (0) Garage List My girl's 2004 Merc ... [0.00] 2006 Range Rover Su ... [0.00] 2002 M3 [0.00]	The only info I have seen dates back to 2003 BusinessWeek article about Minis & BMWs. At the time they stated 50% of minis were built to order and 40% of US bound BMWs were built to order. 80% of European orders were built to order. This was 3 years ago but I’m sure you can Google it. I would be interested in seeing recent stats if someone has a source.
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03-08-2006, 03:19 PM	#4
mmeads Private First Class 5 Rep 172 Posts Drives: Join Date: Dec 2005 Location: H-Town iTrader: (0)	Good point, that's a great idea for a poll. I'll figure that out. But right now I really curious about BMW NA statistics. __________________ m\|m e90: 325i/SG/Terra/Alum/6sp/ZSP/Xenon/Sirius//
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03-08-2006, 03:21 PM	#5
shimshimhada Brigadier General 442 Rep 4,838 Posts Drives: Portal Join Date: Jul 2005 Location: Portal iTrader: (2)	Probably like 9 to 1.
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03-08-2006, 03:22 PM	#6
Karmøy New Member 4 Rep 14 Posts Drives: Artic metalic 320/Navi Prof. Join Date: Dec 2005 Location: Norway iTrader: (0) Garage List 2005 320 ia [0.00]	Special made by BMW for...... I think the most of them are special order/equipet by owner...
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03-08-2006, 03:26 PM	#9
3aficionado Captain 17 Rep 710 Posts Drives: 02 M3/RRover Super Join Date: Oct 2005 Location: Los Angeles iTrader: (0) Garage List My girl's 2004 Merc ... [0.00] 2006 Range Rover Su ... [0.00] 2002 M3 [0.00]	This article claims BMW builds to order 6 out of 10 cars: http://www.economist.com/surveys/dis...ory_id=3127250 Maybe my original numbers were wrong or outdated. Still interested if BMW Group has this info available.
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03-08-2006, 03:30 PM	#10
mmeads Private First Class 5 Rep 172 Posts Drives: Join Date: Dec 2005 Location: H-Town iTrader: (0)	Good leg work, i'd seen quotes from that article but not the whole thing. The only problem is that's a couple of years old. Perhaps they've changed their business model a bit in the last couple of years? __________________ m\|m e90: 325i/SG/Terra/Alum/6sp/ZSP/Xenon/Sirius//
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03-08-2006, 03:38 PM	#11
3aficionado Captain 17 Rep 710 Posts Drives: 02 M3/RRover Super Join Date: Oct 2005 Location: Los Angeles iTrader: (0) Garage List My girl's 2004 Merc ... [0.00] 2006 Range Rover Su ... [0.00] 2002 M3 [0.00]	From what I've read BMW is moving more to the JIT* - BTO model... Just in Time and Build To Order. This way BMWs suppliers are supplying just the parts they need in time to fulfill the orders that are being placed which are guaranteed sales. If anything I would guess the build to order numbers are higher since the article. Of course no company can successfully pull off 100% build to order since consumers still want to test drive the cars. And there are always some customers who want or need it now so they buy what’s available instead of waiting 3 months for a built car to make it to the US. Once you get above $40k and have a build to order option I think most buyers are willing to wait a couple months to get exactly what they want at no extra cost. I do think the Europe build to order numbers would be higher than the US. In Europe they may have to wait a month or less for the exact car they want. In the US a 3 month wait could cause some people to buy off lots. My link above touched on this and BMWs solution. *Source where I read about BMWs JIT plans using mySAP Automotive: http://whitepapers.silicon.com/0,390...000626q,00.htm
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03-08-2006, 04:10 PM	#12
E90Fleet Lieutenant General 1312 Rep 10,185 Posts Drives: BMW Join Date: Apr 2005 Location: South Africa iTrader: (0)	BMW does use JIT, for most parts they only have 30min worth of supply at the factories. All Factory cars are built to order, atleast what the dealers ordered. BMW AG keeps NO stock If the dealer doesn have a customer yet, they still get the car accordng to how they sepec it. Dealers get a allocation, and have to take that allocation even if they dont have a customer for it yet __________________ BMW if you are reading, I need a job, Please.
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03-08-2006, 04:12 PM	#13
shragon Moderator 497 Rep 27,441 Posts Drives: BMW Join Date: Oct 2005 Location: Bay Area, CA iTrader: (7)	yep, should start a poll. mine wasn't. __________________ www.cardomain.com/id/shragon
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03-09-2006, 02:38 PM	#18
mmeads Private First Class 5 Rep 172 Posts Drives: Join Date: Dec 2005 Location: H-Town iTrader: (0)	Oh yeah, they were just quoting the Economist Article. No direct stats from BMW have been found yet. __________________ m\|m e90: 325i/SG/Terra/Alum/6sp/ZSP/Xenon/Sirius//
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03-09-2006, 08:51 PM	#19
sblument Lieutenant 13 Rep 427 Posts Drives: 2006 330i Join Date: Feb 2006 Location: Champaign, IL iTrader: (0) Garage List 2006 330i [0.00]	build to order The users (especially the active ones) of this site are likely not the typical, majority BMW customer. This site is populated mostly by automobile enthusiasts. This is borne out by the # of us who drive a standard transmission -- there is a poll somewhere here and it is nearly 50%. My dealer (Fields BMW of Northfield, IL) says only 2-3% of his cars are sold with the standard transmission. __________________ 2006 330i, SP, PP, fold down rear seats, sparkling graphite, black leather, metallic trim.
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