User's Manual

Strategic Management
Oversee Unparalleled Long-Term
Corporate Flexibility
Modularizing your vehicles gives you unprecedented
flexibility to deal with difficult market conditions such as:
• New engine regulations in 2007 and beyond
• Pass-car technology migration
• Aggressive competitor pricing
Additional Flexibility:
• Changing fixed costs to variable
• Sharing / amortizing capital investment
• Leveraging supplier sunk investments
• Reallocating labor
• Reducing on-site inventory
• Increased leverage with core suppliers
• Increased buffering for demand changes
• Multi-discipline problem solving ability
If you decided to build modules in-house, your investment
would be $1.5m. Let us help you avoid this.
Gain Access To Special Skill Sets Not
Currently In-House
Our modules program allows you to gain access to our
specialized skills, tooling, processes and equipment.
Feature-based ordering, cumulative buying power, on-site
testing and in-house design are just a few. Since Bendix is
part of the Knorr-Bremse Group — with strategic locations in
over 20 countries worldwide — your regional vehicle
concerns can be addressed “locally.”
It doesn’t matter whether you compete on cost, profitable
options, responsiveness or perceived quality. Incorporating
modules into your building brings a more competitive
cost structure that helps drive profits even before you sell
additional vehicles.
Avoid Expensive Plant Expansions,
Equipment Relocation and Costly
Capital Investments
Plant expansions can easily cost $3.00 per square foot. When
you consider the added fixed burden that approach brings,
you understand why we advocate a different approach.
Incorporating a Bendix module can free up 5,000 square feet
(or more) of shop floor space. This also comes in handy for
the next new model equipment location.
OEM Marketing and Sales
Upselling Options and Joint Marketing
Boost Your Sales
Think about enhancing your competitive advantage by
offering new options to the marketplace not currently on
your vehicles. Consider how much additional profit would
options such as an: A/T shifter, adjustable pedals or
telescoping steering column could bring to your bottom
line. Once these options (or any other you may select)
are released on your module, Bendix will support the
promotional efforts of your sales force to enhance
pull-through and upselling. Get the established Bendix
sales force to work for you.
A Lower Cost Structure Allows More Price
Flexibility For Promotions
With a material cost reduction, labor cost reduction and
inventory savings, you will be in a much better position to
battle in the marketplace. Whether you want to gain market
share or defend what you have, modularization will offer you
the price flexibility that can make the difference. Have you
ever lost a bid for ~$50/vehicle? Find that $50 savings
in modules.
– New vehicle launch – Aggressive cost downs
– New chassis launch – Major inventory tasks
– Major chassis redesign – Major quality initiatives
– Production line retooling – Drive for technology
– Shop floor constraints – Supplier base reduction
WHEN YOU SHOULD CONSIDER MODULES