First, if you use a WD you probably use them for stock orders as well as emergency purchases. It's no secret (for metro dealers, at least) that WD's will deliver 3 or more times a day. That's a level of service SPO cannot match. Therefore, the decrease in stock order discount and return reserve is actually an incentive to use the WD's more than less. This is great news for the WD's and for you too, the WD price better (for now...)
Second, there has always been a push by GM to make our inventories as clean as possible. Why would they care how we waste our money? Because a clean shelf gives you room to buy more but the benefit of turning your money with stuff that sells means more to your profitability. Poorly managed parts departments abuse the return reserve and if you don't monitor obsolecence as a dealership priorty, then GM is only wasting money providing a return reserve and you have cash locked up on your shelf.
Third, to address the issue of WD's selling directly to installers in competition with you. This is nothing new, AC-Delco even tried branding independant shops many years ago and they continue. AC-Delco will deliver to any installer, gas station or what ever, but where is the incentive? Every time the truck comes to our dealership it carries a substantial order. The WD's don't want to deliver a single switch or spark plug to some local gas station: They'd rather we purchase a bunch and resell it ourselves. Besides, most independants don't know the part number and waste time on the phone with the WD. Do the independants ask you to look up numbers for them??
Finally, this policy change is going to cost us some money in terms of the discounts, etc. What should we expect from this cost-transfer? Maybe a little better service.
GM-SPO wants us to get into the tire business "on-a-roll" but so far their prices are equal to or greater than what we pay locally (and there's that delivery delay). Why can't GM offer killer prices on tires???
They'd also like us to brand our body shops but so far that only appears to be a licencing fee generator. GM-SPO is pushing accessories too.
What they should do is improve their level of service before they wander off into other things. Why all the back orders? Ever ask your manager how many SPAC cases they do every week? And transportation damage is real and causes CSI problems.
The good thing not mentioned in the bulletin was the increase in 'captive' parts list price, like trim and sheet metal. For you who operate a bodyshop, insurance pays list. You can also bump your price to independants.
Well, wonder what's next. Probably a good thing for you to discuss with your parts people and your factory reps.
keep smiling!
scott
[This message has been edited by sallen1 (edited 04-23-2002).]