Daily stock orders.

[Neil]

I would like some help from you all regarding daily stock orders. Ford parts division is spreading the word about switching over to daily stock orders. Ford feels that since they are so generous by changing over to daily stock orders that they can change our stock order discount to 1% and our obsolescence to 2%. My questions are how beneficial are daily stock orders? Will it make us much more productive? Will it lower our inventory?

[Chuck Hartle]

Interesting proposition. Ford should first and foremost worry about depot fill before they go to daily stock orders.

If Ford is willing to go to daily stock orders and sacrifice the discount structure to 1% and PIPP to 2%, why can General Motors offer the same daily stock orders with 6% return reserve and 3.75% discount on either DRO/CSO orders?

This would, however, be something if Ford went to daily stock orders and left the discount and the PIPP alone, then you would have something you could discuss. But, most importantly, until Ford gets back into the parts business and begins to attack their "industry low" fill rate, nothing will make a difference.

I must caution we have had discussion with Honda and Acura dealerships about daily stock orders and while some of this same discussion has come forward, the conclusions many are coming to couldn't be further from the truth. I only have to ask where you got this information from? I have heard rumors of Ford discussing daily stock orders, but nothing in regards to the drastic cutback of discounts and return allowance that you have mentioned! Do You have or does anyone out there have email or written information that Ford has indeed proposed this?

Thanks

Chuck Hartle'

P.S. I have chopped this up a couple of times because I would like to give Ford the benefit of the doubt at this point. I can feel their pain if this is just a rumor or trial balloon.....

[This message has been edited by Chuck Hartle (edited 09-18-2001).]

[This message has been edited by Chuck Hartle (edited 09-18-2001).]

[Chuck Hartle]

In response to your questions about what this would do to your inventory.....

Would Customer satisfaction levels drop with daily stock orders?

Chuck Hartle'

[partsfool]

There is an all dealer Fordstar broadcast covering this issue on Friday. I'll try to keep you posted.