Reducing lead time in early contract termination: KINTO’s path to efficiency

The automotive sector is undergoing rapid transformation driven by digitalization, new mobility models, and rising expectations for fast, seamless customer experiences. Leasing and subscription services, in particular, now rely on real-time information, simplified workflows, and fully digital interactions to remain competitive. As processes become more complex and volumes increase, organizations must reduce manual work, shorten lead times, and ensure consistent service quality. In this environment, operational efficiency and process automation have become essential to meeting the demands of both customers and dealers.

Shaping the future of mobility

KINTO Deutschland GmbH is a subsidiary of KINTO Europe (a joint venture of Toyota Motor Europe and Toyota Financial Services) with its headquarters in Cologne. The company focuses on innovative mobility solutions and offers two core products on the German market:

• KINTO One, a B2B leasing solution
• KINTO Auto-Abo, an all-inclusive car subscription model

KINTO Deutschland is part of the larger KINTO brand, which aims to provide sustainable, flexible, and customer-centric mobility services. Its services cater to individuals and businesses, providing alternative mobility solutions to traditional car ownership. With a strong presence in the German market, KINTO has been a key player in reshaping how people access and utilize vehicles.

The company’s vision is to make mobility more accessible, flexible, and sustainable, aligning with the growing demand for innovative transportation solutions in the automotive industry.

Figure 1 – Excellence in Applying KAIZEN™ Principles Award Ceremony

KINTO Deutschland GmbH was honored with the Excellence in Applying KAIZEN™ Principles Award at the KAIZEN™ Award Deutschland. This prestigious recognition highlights the company’s outstanding application of Kaizen principles, which focus on continuous improvement and operational efficiency. The award underscores KINTO’s commitment to driving innovation and enhancing its processes, setting a benchmark for excellence in the automotive mobility sector.

Identifying opportunities for improvement in early termination

When addressing the challenges faced by KINTO Deutschland GmbH, it became clear that some areas of their process needed optimization to improve both operational efficiency and customer satisfaction.

A thorough root cause analysis was conducted to identify the core issues affecting the early termination process, which involves the procedures and fees associated with ending a contract or lease before its scheduled end date. The analysis revealed that several factors contributed to inefficiencies in the workflow:

• Inadequate capacity of the customer service team: The team lacked sufficient resources, leading to delays in processing early termination requests.
• Manual processes and Excel-based forms: Much of the offer preparation required manual adjustments using non-optimized tools like Excel, which added significant time to the process.
• Lack of automation: The absence of an automated system to calculate the early termination offers resulted in time-consuming manual calculations, further slowing down the process.

The findings from this analysis were critical in guiding KINTO’s efforts to implement improvements that would address these issues and streamline the process.

Figure 2 – Representation of the root cause analysis carried out

Innovative solutions: the steps taken to improve efficiency

To overcome the challenges, KINTO adopted a combination of Lean principles, Kaizen methodologies, and advanced technology solutions. These actions were implemented to improve efficiency, reduce operational bottlenecks, and enhance the customer and dealer experience. Below is a detailed look at the actions taken:

1. Understanding the challenges through the Gemba Walks approach

KINTO adopted the Gemba Walks approach, meaning “go to the actual place”, to gain a deeper understanding of the issues in the early termination process. To diagnose the problems and identify areas for improvement, dealers were contacted through a detailed survey. This survey was crucial for gathering key information on pain points in the process, enabling the company to pinpoint specific bottlenecks and inefficiencies in the workflow.

Additionally, lead times and cycle times were calculated to quantify delays and assess the effectiveness of the current process. This thorough analysis provided a solid foundation for implementing improvements, leading to automation and process optimization that significantly reduced offer preparation time and improved the overall experience for both dealers and customers.

2. Definition of the Yokoten plan for replication

In alignment with Kaizen’s philosophy of continuous improvement, KINTO developed a Yokoten Plan. The term Yokoten refers to the practice of sharing successful improvements across different teams and locations. In this case, the improvements made in Germany were planned to be replicated in other KINTO markets and subsidiaries. This ensured that the learnings from one market were shared with others, accelerating the adoption of best practices and driving uniformity in process improvements across the company.

3. Updating SOPs and communication actions

In a Lean transformation, Standard Operating Procedures (SOPs) are crucial for ensuring that all employees are aligned and following the same efficient workflows. By updating SOPs, KINTO ensured that the newly implemented processes were standardized across the organization. This eliminated confusion and reduced the risk of employees reverting to old, inefficient methods.

Additionally, communication actions were crucial in getting buy-in from all employees involved in the process. Regular communication through emails, meetings, and training sessions ensured that everyone understood the goals of the changes and how they contributed to a more streamlined, efficient operation. KINTO also used visual management tools to continuously remind teams of the new processes, fostering a culture of continuous improvement and accountability.

4. Process flow review and redundancy elimination

One of the core principles of Lean management is the elimination of waste—unnecessary activities that do not add value to the customer. KINTO conducted a comprehensive review of existing process flows to identify any steps that could be eliminated or streamlined. By focusing on value-added tasks, such as providing accurate early termination values and removing redundant tasks, KINTO was able to shorten the overall processing time.

This process flow review also helped simplify interactions between departments, reducing the back-and-forth that often created bottlenecks. The revised flow created smoother handoffs and reduced the time needed to make critical decisions.

Figure 3 – Process flow review

5. Automation of offer calculation within the miles system

A significant breakthrough was the automation of the offer calculation process within the MilesRia/MilesWeb system. This system was designed to automate previously manual tasks, such as retrieving early termination values and performing calculations based on those values. Automation in this context not only reduced the risk of human error but also accelerated the process by eliminating time-consuming data entry.

By integrating this feature directly into the MilesWeb platform, KINTO enabled dealers to instantly generate early termination offers. This integration reduced the reliance on manual work, making the system faster and more accurate. It also created a more consistent process, as all users were following the same automated workflow.

6. Implementation of the early termination offer request system for dealers

To further enhance dealer experience, KINTO introduced a new feature within the MilesWeb system. Dealers can now request early termination offers directly through the platform, eliminating the need for internal KINTO teams to manually generate each offer. This self-service option empowered dealers to get the information they needed without delay, improving responsiveness and increasing dealer satisfaction.

The automation of offer requests also reduced the workload on KINTO staff, allowing them to focus on more complex tasks while ensuring that dealers had quicker access to the information they required

Figure 4 – Kinto’s application

7. Creation of templates, dashboards, and system integration

KINTO developed custom templates for the early termination offers, ensuring that all offers followed a consistent format and contained the necessary information. This eliminated variability in the way offers were presented and helped maintain a professional standard across all communications.

Additionally, dashboards were created within the system to provide both employees and managers with real-time visibility into key metrics, including offer processing time, customer satisfaction scores, and system performance. This transparency helped KINTO quickly identify bottlenecks and take action to address them, ensuring the process stayed efficient and on track.

Finally, integrating all these tools into the existing MilesWeb system created a seamless experience for both employees and dealers. The integration improved the workflow by allowing all data to be processed and accessed from a single platform, reducing errors and increasing operational efficiency.

The results that matter: efficiency, savings, and satisfaction

The actions implemented by KINTO Deutschland GmbH resulted in significant improvements across multiple areas, including operational efficiency, customer and dealer satisfaction, and cost savings. The outcomes were aligned with the company’s goals of reducing lead times, increasing process efficiency, and enhancing the overall service experience for customers and dealers. Below are the key results:

Quantitative results

• Lead time reduction: preparation time for early termination offers was reduced from 2 days to 0.125 days (approximately 3 hours).
• Increased task efficiency: cycle time for each offer reduced from 75 minutes to 19 minutes, enhancing productivity.
• Operational cost savings: achieved €37,200 in annual savings due to process optimization and automation.
• Customer and dealer satisfaction: achieved 81% satisfaction rate, resulting from faster, more accurate responses and an improved overall service experience.

Figure 5 – Summary of the results obtained

Qualitative results

• Improved employee satisfaction: employees experienced higher job satisfaction as they were able to focus on value-added tasks rather than manual work.
• Increased trust and loyalty: the ability to provide quicker, more transparent services led to stronger relationships with both customers and dealers.
• Scalability and replication: the implementation of the Yokoten Plan allowed for successful replication of improvements in other KINTO markets globally, fostering consistency and operational excellence.

KINTO’s commitment to efficiency and excellence

In conclusion, KINTO Deutschland GmbH’s transformation reflects the broader shift within the Toyota Group, where Lean principles and a focus on continuous improvement drive operational excellence. By implementing Kaizen methodologies, KINTO streamlined processes, reduced inefficiencies, and improved customer and employee satisfaction, ultimately reinforcing the company’s commitment to delivering innovative mobility solutions.

“We are really delighted about this, as it also motivates us to continue growing in line with the Toyota Way, to keep improving and to become an even stronger company. “– Holger Nelsbach, commercial director

This initiative exemplifies how thinking outside the box and embracing new, breakthrough approaches can lead to substantial improvements and redefine the way operations are managed in the automotive industry. By constantly challenging the status quo, KINTO has not only enhanced its own performance but has also contributed to the ongoing evolution of the automotive sector, where agility and innovation are key to staying competitive in a fast-changing market.