GM's D2D Express

[Parts007]

You all know that SPRINT is going away, and in its place, will be D2D Express.

Here is a few concerns, please feel free to add more in.

As stated within the D2D Express Standards of Participation: Dealer must be willing to local deliver any case within 20 miles.

How is this mileage defined? OEConnection states that (DealerA) in is 20 miles away from (DealerB).

According to Mapquest.com, the mileage between these two points is 30.06 miles. Estimated time of travel is 38 minutes one way. That is one hour and 16 minutes total travel time I lose my driver to deliver a part that I make 13% GP on!

Not that I sell a lot to GM SPRINT. But taking into account the price of fuel and other vehicle-related expenses, and losing the service to my local wholesale customers while delivering a local case; I could see my sales, and other small dealers sales to GM dropping significantly with this newly improved program.

This will ultimately mean that there will be less backorder parts available to GM to fill SPAC cases.

With that in mind, is D2D Express going to help the GM dealer (and customer) more than SPRINT, or is it going to help GM reduce costs while also reducing service?

As a dealer waiting for a backordered part to arrive, I would be more inclined to go pickup the part locally. I would also be happy that I am only paying "cost" for the part instead of paying 20 above buying from the dealer directly.

Your comments please!

Tony

[Joe]

I am a little confused, here is a copy of a D2D Express document that states 2 different concepts.

"The backbone of D2D Express is the knowledge of part availability and using distance calculations to source the need. To maximize customer service D2D Express will introduce a concept referred to as local delivery. In many cases, local delivery will provide same day delivery of the needed part. Each participating dealer will be allowed to input a mileage radius the dealership is willing to deliver a part at their expense. The larger the radius, the more opportunities you have to respond to the need. When the part is not available through local delivery D2D Express will source the order to the closest dealer while relying on Fed-Ex for the delivery as done today." AND "Dealer must be willing to local deliver any case within 20 miles"

These satements were found in document 00063.html

[Parts007]

I comprehend that as the following:

Each participating dealer will be allowed to input a mileage radius the dealership is willing to deliver a part at their expense, as long as it is at least 20 miles.


They want you to input a larger mileage radius, so you can drive farther for freeeee...........

What a deal!

[CharlesGM-PM]

This is basically a cost reducing exercise for GM.

They have reduced our gross profit on these SPRINT sales, from a 25% markup to 15%, which equals only 13% of gross profit, and we have to deliver it!!!
Gee, what a great deal for the dealers.

But as usual I'm sure the big boys will jump on this and kiss the General's but.

[drapp]

We are a small dealership. I signed up for the D2D express after receiving a response from a GMSPO person with knowledge of the program.

The enrollment materials do state that a dealer can input a mileage radius. The actual sign up form on the internet does NOT allow this. The mileage is stated and can not be changed.

However, keep in mind that dealers can choose NOT to sell any SPRINT requested part. So if you don't want to sell a particular part, then don't. Or if the parts mark-up doesn't cover the delivery costs, don't sell it.

While this may not meet GMSPO's objective, it is real world. No one can deliver a $10 part 20 miles for free (or for the SPRINT mark-up) unless your driver is going that way anyway.

Also keep in mind that the larger dealers will see the SPRINT request first, so unless you are one of those dealers you aren't going to see a lot of these requests anyway.

[jimt01]

Dan
I agree with you, if it's not worth your time and effort just don't sell it. On the other hand if it is discontinued and/or obsolete in your inventory why wouldn't you be willing to sell it just to get it off the books?

Jim

[CharlesGM-PM]

If dealers are going to pick and choose the parts that they want to sell, this will compromise the integrity of the SPRINT program.
So don't be surprised when the parts that you have SPAC cases on are not being shipped, and your customers are waiting unnecessarily for their vehicles to be repaired.

[scotstrong]

So tell us, CharlesGM-PM, what really is your occupation since your profile neglects to mention it? You sound remarkably like you are espousing GMSPO corporate-speak. The program as it now stands is obviously flawed, and the solution is not to bitch about dealers that are not willing to do business at a loss to prop up this flawed program. The solution is to fix the program and make it worth while for those willing to participate to do so. Maybe if they have to eat enough rental expense because no one is willing to do business at a net loss they will realize that whatever savings they have realized with the modified program just went right out the window.

In situations where another dealer is within 20 miles, say, would it not benefit both parties for the dealer with the needed part to just sell it directly to the dealer requiring it as a wholesale sale at normal wholesale price; and the purchasing dealer just claim the difference paid with the appropriate "Z----" labor op? A lot less paperwork and hassle for both parties; and no transaction at a "net loss" for the selling dealer.

The argument that "Well, if you do not participate, then when you need a part that another dealer has it is going to negatively impact you being able to repair a customer's vehicle" is hollow at best. Any parts manager with any business acumen is going to contact that other dealer directly and work something out outside of the D2D program to get that part and get the vehicle repaired.

Your move, Charles

Scot Strong

[CharlesGM-PM]

Scot,

FYI, I am a Parts Mgr. at a GM dealership.

You totally misconstrued what I was referring to. I am not "bitching" about dealers that do not want to sell at a loss, I'm saying that this D2D Express process is going to really SUCK!!!

I can envision vehicles down in my shop waiting for parts that would have been available through the current SPRINT process.

[JC]

Scott I agree on warranty pts,but what about the insurance body shop estimates.Have to give discounts to stay on there programs now can`t afford any more expenses. jc