Dealer Management

CNH Industrial is aware that the dealer and service network provides a gateway for communication between the Company and its customers. Dealerships interact every day with the customers who use CNH Industrial products in their work, who need advice on the best purchasing options and assurance that they are investing the right amount on a product that best meets their business needs. This relationship must be one of mutual trust, so that CNH Industrial customers may rely on timely assistance and on as little downtime as possible, especially in agriculture where harvesting and sowing cannot be postponed.

The dealer network is managed by Region and by brand, with adequate structures in place to meet the needs of local markets. The dealer and service network is required to meet CNH Industrial’s quality standards, which are verified periodically, and to adopt the Company’s specific dealership development programs. The main goal of these programs is to enable dealerships to offer the best possible service to its customers, and to foster the creation of a stronger and more competitive dealer network, thus contributing to their growth.

In 2014 a new Compliance Helpline was established to address questions and concerns regarding CNH Industrial principles, as outlined in both the Code of Conduct and in other Corporate policies, and applicable laws; the Helpline is managed by a third party and is also available to entities outside the Company (for further information, see also page 57).

DEALER NETWORK (a)

  2014
Agricultural Equipment Full-line dealers 2,700
  Point of sale 6,600
  Proprietary dealerships 3
Construction Equipment Full-line dealers 600
  Point of sale 1,500
  Proprietary dealerships 4
Commercial Vehicles Dealers 639
  Proprietary dealerships 20
  Branches 13
Powertrain Full-line dealers and points of sales 93

DISTRIBUTION NETWORK QUALITY MANAGEMENT

Detailed quality standards are set for each brand and specified in the guidelines enclosed with the contract that each dealership signs when admitted into the Company’s dealer network. These standards mainly concern:

  • dealer identity 
  • sales 
  • service 
  • parts.

The identity section provides information on managing the physical appearance of the dealership, including posters, interiors, and staff uniforms. For all other aspects (sales, service, and spare parts), there is a detailed list of required facilities (meeting rooms and customer parking areas), compulsory equipment (Information Technology and a workshop), and the personnel expected. The equipment and KPIs to be monitored for each line of business are specified as well (response time in the event of downtime, recall campaign management procedures). The guidelines also concern the training of dealership personnel, indicating the number of hours and types of courses that CNH Industrial will provide for each professional profile (see also page 219).

The admission of a new dealership into the dealer and service network of a CNH Industrial brand requires an Electronic Network Action Approval Form (eNAAF). In order to be approved, the eNAAF must receive a green light from the Dealer Network, Region Sales VP, Service, Parts, CNH Industrial Capital, and Legal representatives, and possibly from other CNH Industrial legal entities should the dealer be interested in selling more than one brand. Once the contract is signed, Network Development and dealer agree on a start plan that defines the timing of all standards to be achieved, while the commercial area and dealer agree on a sales business plan.

Different contacts are assigned to new dealerships entering the CNH Industrial network, to provide guidance according to their areas of expertise:

  • sales 
  • service 
  • spare parts 
  • CNH Industrial Capital 
  • network manager.

In addition, dealers may request the support of the Training function that follows the relevant market, and access many online courses specific to different dealership positions via the Training area.

The contacts, who visit dealerships regularly, are also responsible for communicating any changes in quality standards based on their area of competence, and for establishing a schedule for dealership compliance.

The dealer network is involved in regular events aimed at involving and providing the sales force with updates on quality standards.

For any non-compliance identified during an audit, an action plan is established and monitored through follow-ups (see also page 219).

In parallel with the quality standards set by the brands, CNH Industrial strongly encourages dealerships to pursue international quality standards, such as ISO 9001: 2008 for quality system management, and ISO 14000 for environmental management.

Dealer Portal

Once the contract is signed, the dealer’s admission to the dealer and service network is codified, which entails the creation of a user name and the provision of credentials to access the Dealer Portal.

This web portal connects the global dealer network to CNH Industrial, and provides the tools to manage sales and after-sales. The Dealer Portal allows dealers to:

  • order information material 
  • configure a vehicle and draw up a quote for the customer 
  • enter purchase orders 
  • download owner and maintenance manuals 
  • register new vehicle warranties 
  • order spare parts 
  • obtain technical information for repairs 
  • receive authorizations to perform warranty repairs 
  • receive information on recall campaigns.

All activities related to the technical management of products are overseen by Quality, which manages the Contact Management System (CMS) tool, accessible via the Dealer Portal. The CMS is the primary support system for any dealer facing an issue with a vehicle or a machine, through knowledge search or technical helpdesk requests.

The CMS allows Quality to collect field information and to identify and solve global product issues in a timely manner, hence reducing warranty costs and improving customer satisfaction. The System provides extensive technical information on all products, and specifies how to perform repairs and which tools to use (tools and diagnostics). It also contains Service Bulletins illustrating how to address recurring problems and recall campaigns (PIPs), and a repair history for each vehicle or machine. The service network can therefore access specific technical information on repairs and receive authorizations to perform warranty repairs in real time.

Furthermore, the CMS can identify the frequency of defects evidenced during interventions and provide the CPM Team with the information needed to immediately launch a recall campaign (see also page 216).

Geomarketing is another tool used by CNH Network Development to monitor the performance of dealerships in their respective areas of reference. The tool was rolled out to Agricultural Equipment brands in 13 countries, and to Construction Equipment brands in four. The tool can be accessed by CNH Industrial and dealers alike, allowing them a reciprocal exchange on potential growth and on specific performance within their area of reference.

Audits and Incentives

The dealer network is audited yearly, either by CNH Industrial, external agencies, or by the dealership itself through self-assessments. The audit checklist covers three main areas: sales, after-sales, and spare parts, as well as specific aspects for each of these areas. Dealerships are evaluated on: competitiveness, organizational structure, financial sustainability, customer service and satisfaction, visual identity, equipment and operations, administration and marketing, sales, spare parts, and training participation.

The programs implementing dealer quality standards are monitored and managed via a dedicated system known as AssessNet-NAT (Network Assessment Tool). This system is used by all CNH brands in the EMEA Region, and Iveco will join the program in 2015 using the same CNH platform. The AssessNet-NAT software manages information on all CNH Industrial brand dealers and sub-dealers, allowing each company to continually monitor their compliance with required qualitative standards, while overseeing the measures planned to meet them. The system also collects information on every dealership network audit performed and respective results. After analyzing dealer performance, the system provides an action plan to help improve the weaknesses evidenced by audits. Audit results determine dealership access to the incentive programs established by the relevant brands.

In fact, every CNH Industrial brand implements incentive programs that are developed in line with global market strategies, but tailored to meet specific local and regional needs. The main objective of these programs is to foster business growth among dealerships and the best possible customer service. Some of these programs, such as Case IH’s Red Excellence Program and New Holland AG’s Top Partner Program, establish different levels of compliance, offering the highest achiever among dealerships an opportunity to partner with the brand.

    

DEALERSHIP TRAINING

The Company believes it is very important to build the skills and know-how of all dealership personnel. This is why, every year, it designs and runs special training programs for technicians, sales people, and after-sales staff, tailored to the strategies and needs of the brands. Training courses are designed to develop and capitalize people’s product knowledge, managerial skills, and technical know-how, and to raise awareness of a Corporate identity built on standards of excellence.

To meet dealer and service network training needs, CNH Industrial created Unetversity, a dedicated training facility to enhance the knowledge and expertise of its dealers. Unetversity’s training approach aims at improving the dealer network’s know-how and ability to meet customer demands, from offering products that meet their actual needs, to performing repairs in a timely fashion.

Unetversity offers customized solutions consistent with current market conditions, and a wide range of training activities in the languages spoken by dealers and customers. Training courses are provided in many forms, from traditional classroom lectures to online, face-to-face, or virtual training. Training methods are chosen by the users, and courses are calibrated according to their actual needs. Moreover, all educational material is designed to be shared with customers as well, as a tool to be integrated into daily work management.

In addition to training on innovative products, emissions reduction, and cutting-edge services to meet customers’ every need, Unetversity also provided Driver Training courses, especially to Iveco dealers, teaching how to drive vehicles flawlessly (see also page 207). In 2014, Unetversity provided 90,200 hours of commercial training, for a total of 288 courses available in 19 different languages, across the Commercial Vehicles segment in the EMEA and APAC Regions.

Furthermore, over 295 thousand hours of technical training were delivered on vehicles and major units launched during the year.

 

 

GRI: 
G4-DMA;