Nicholes Newsletter

[Richard]

The Sept 2016 OBSOLESCENCE Issue.

As a GM parts manager, I would love suggestions on how to stay RIM compliant (making the owners happy) yet not putting every piece of junk GM is overstocked on and wants to ship to my warehouse instead of theirs.
I try my best to pay close attention, but the owners instructions on the topic of RIM; "Stay above 90%, let them add anything they want to under $50/piece". The entire idea of RIM is repugnant to me, a GOOD DMS system (which I don't currently have as we are on CDK), used correctly should have the proper stock available when needed. Even with this crappy system, I could do a better job than RIM as far as stocking this parts department goes.

That said, I hover around 90% all the time. I don't want to give chemicals to RIM (9% discount if I buy enough, versus 1% on RIM orders), even though I had to give them a few numbers recently to get 90%. How are the rest of you playing the game?

[Mike Nicholes]

It might be a little hard once you are 'in' the DMS, as opposed to changing or reinstituting a new contract, but here is an idea that works:

Remember; you are paying for the DMS; the data (despite what a couple of DMS systems claim) is yours; therefore you have the right, if you build it in the contract to do the following.

1. No data can be transmitted from your DMS to ANY other source for any reason without written permission from you.
2. Your current DMS must be set up to have source(s) that you can use to track, sell, stock, any parts you want whose history CANNOT be transmitted to a third party.

Dealerships that are renegotiating contracts or changing DMS systems are currently successful in this manner; but you have to have your attorney's put the DMS on notice of the contractual language that prevents the DMS from sending, allowing downloads, etc of any of your data without written permission; and I might add, on a case to case basis.

Pass this on to your attorneys for review first; and review of the contract language between you and the DMS, you and your factory, and your factory and the DMS.

I believe from what I am hearing from a significant number of dealerships that an anti-trust issue is brewing and might raise it's head after the NADA convention in New Orleans.

Mike