Question
To build a sustainable competitive advantage, Carvana must strengthen internal controls and operational efficiency while continuing to invest in technology and enhance the customer journey.
To build a sustainable competitive advantage, Carvana must strengthen internal controls and operational efficiency while continuing to invest in technology and enhance the customer journey. The following strategy aims to achieve this balance over the next 4 years through targeted initiatives and close management oversight:
Initiative 1 (Y1-Y2): Implement a revised accounting and title transfer process with audits and controls at key checkpoints. Estimated cost savings of $5M.
Initiative 2 (Y2-Y3): Launch a Operational Excellence program including Lean Six Sigma projects, process mapping, and employee empowerment. Aim for 10-15% improvement in key metrics (vehicle reconditioning time, delivery logistics, etc.). Estimated cost savings of $25-30M.
Initiative 3 (Y3-Y4): Continue investing 10-15% of revenues in new technologies like AI pricing optimization, AR for remote walkarounds, and automated inspections. Revenue growth of 25-30% Please create an accurate and factual cash flow sheet that represents this data in relation to Carvana's current financials.
Please create an accurate and factual cash flow sheet that represents this data in relation to Carvana's current financials.
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