BMW is an internationally recognized brand for excellence and quality in the car industry. Its excellence starts from the car product itself to the maintenance and servicing of these cars. The previously estimated after sales client satisfaction rating of 92% is under serious threat given a serious breakdown in the company’s supply chain of spare parts.
The management of ordering and maintaining optimum levels of stocks of spare parts allows the company to reduce finance or “obsolete” costs levels. Any breakdown in this ordering system can have significant image and reputational issues with BMW clients, mostly in the “premium” or “high-end” market segment.
Despite the quick response of BMW’s management to sort out inventory shortages at the main distribution center in Dingolfing, it is likely that the level of customer satisfaction is likely to fall and impact the image of the BMW brand.
As the chaotic change in logistic management system is an isolated incident, it is unlikely that the BMW brand, and demand for its products, will be significantly impacted in the long run given BMW’s dominance in the premium car market segment and reputation for efficiency and reliability, unless the disruption in spare parts supply drags on unduly.
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