Proactive insights in truck manufacturing case study

Solidifying a future-forward foundation

Daimler Trucks Asia (DTA), an integral subsidiary within the world’s largest truck manufacturing company Daimler AG, has a clear vision—to lead the commercial vehicle industry into the future. DTA’s chief information officer (CIO) Lutz Beck believes to accomplish such a feat, he must transform DTA’s entire business model into one that leverages the power of insights—a deep understanding of data and its value to the business. Mr. Beck notes, “We have to be a disruptor in the industry and disrupt our own company to prepare it for the future.”

That disruption began within the Quality Management department, which is responsible for upholding safety and performance standards for every product that rolls off the lot, including those within both light and heavy truck manufacturing. At the time, identifying quality and safety issues, investigating them and coming to a resolution could take up to two years—time that translated into lost profits. Its department head Mr. Michael Moebius elaborates, “The faster we are in detecting quality issues and addressing customer complaints, the less damage will be done to the brand’s image and its financials.”

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Powered by collaboration

Deloitte stepped in with a multi-disciplinary team to create a big data platform that could analyze previously siloed data using sophisticated algorithms. The proprietary cognitive system dubbed “proactive sensing” enables DTA to analyze structured data like historic vehicle metrics, unstructured data, such as call center records, technician comments and social media engagement, and live data coming directly from connected trucks on the road.

The success of Daimler Trucks Asia and Deloitte’s proactive sensing project hinged on the teams’ desire to function as one. Mr. Moebius remembers, “Deloitte was not just a consultant. They accepted the challenge, too, saying ‘You bring your part, we bring our part, but the success is ours together.’” And success certainly did come. The proactive sensing project is expected to save DTA $8 million in warranty costs during the first 24 months and even more in recall costs. The system is also able to predict and prioritize quality issues thirteen months ahead of their previous process.

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The road less traveled

The journey for DTA doesn’t stop here, however. Through the continuation of innovation and its new dedication to the power of insights, Daimler Trucks Asia is positioned to help lead the truck manufacturing industry into the future, to create new services and claim its spot as a future-oriented global organization.

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