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Prototyping Profit Opportunities for Renault

Accelerating Understanding

Groupe Renault is one of the world’s leading automobile manufacturers, with a global HQ in France and a worldwide stable of brands including Renault, Dacia, Alpine, Renault Samsung Motors and Lada. It is also part of the Renault-Nissan-Mitsubishi Alliance, the largest global automotive alliance in terms of cars sold.

“CadDo’s flexible software, coupled with their expertise in data integration and business modelling, allowed us to put a robust decision-making tool in the hands of the business teams which generates multi-million Euros of annualised savings on an ongoing basis.”

Dragan Gasic
Revenue Management, Groupe Renault

Our Understanding

Groupe Renault wished to gain a true and holistic view of profitability at the lowest level of detail by looking at the activities of Renault Adriatic. This is a discrete market within the European cluster that is considered to be representative of the complexities and multiple data sources affecting Groupe Renault as a whole, making it an ideal test bed.

Our Approach

We began our workshop and deployment approach with a three-day on-site design workshop, in order to create a full scope document in advance of the build. The scope covered two key areas:
  • Actuals: all components from Dealership Price down to Profit Margin enabling a true and holistic view of profitability at the lowest level of detail: Chassis (or VIN).
  • Budget: For each actual VIN sold, applying an average value at a higher level of detail, enabling a wholesome reporting experience with the capability to report and track against budget figures.
While our initial analysis and validation was performed with the core team from Controlling, the equally important second step was to present initial high-level findings to the board in order obtain buy-in. Following a successful presentation to the Board, we formed a number of cross-functional ‘SWAT’ teams to focus on analysing specific target areas. These four-person teams each comprised of members from CadDo, Controlling, Sales and Marketing functions.

Measures of Success

The initial findings of the project uncovered €2m of profit improvement opportunities, which translates to roughly 50bps margin improvement. At this stage, global management picked up on the success of the project and the process has been started to undertake a global roll-out, using learnings from the pilot, under the management of the original project manager who was promoted into a Global role from the Adriatic region.

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