ADP and part # changes (memos)

[imacdude]

I am curious from brand-to-brand what the policy or method for handling part number supercessions are, and how it impacts your ADP system. One of the brands that we carry at our dealership is Volkswagen. When supersessions are made Volkswagen can at any time provide us with the old or the new part number based on our depots stock. They will attempt to deplete the old stock first but will continue to take those parts back on obsolescence returns so they may be in the system for a very long time. Multiple supersessions are even worse. i.e. one part supercedes to several. Cost is yet another issue.
Questions:
1. Should the manufacturers continue to provide the old part numbers after they have superceded it?
2. Should ADP be responsible for being able to handle the part number change methods of the differing manufacturers?
3. Is volkswagen the only one that does this?
4. Does anyone have a good method of addressing the supercession issue?

[jazdale]

I feel your pain.

Chrysler and Nissan also had a habit of superceeding to a new number, then reverting back to the old number. I'm sure this vicious loop had people saying things they wouldn't say in church.

This (and the multiple supercession) is what prompted ADP to build the SDL (setup dealer list) function. This is my best advice to keep a counterman informed of what we have in stock.

The thing I'm curious of is why the factory chose to superceed in the first place. Typically its a vendor change or engineering change in design or materials. Doesn't that kinda mean the oldest part is somewhat inferior to the newer part?

Should we be calling these supercessions with an old/new reference to each other, or should we carry individual parts (and on-hands) and call these substitutions?

Is there any special reference the manufacturer makes that says this is a one-way supercession (meaning it will never revert back to the old number) VS parts that will temporarily be changed, then revert back.

I'm all ears to your ideas.


Dale

[Vernon]

Part number changes are planned obsolesence by the mftg in most cases.They are alo one of the biggest culprits of idle inventory.Because different systems deal with these changes in different ways,there is many many dollars of inventory ordered each year that you already have on the shelf.Every time a part number gets changed,the odds on that part number goes up that it will be buried and forgotten about within your inventory.You are also correct in that a part number change should be a material change or engineer change.The percentage of these changes I have looked at say no.I went to one dealer to discover they had the same part that had been changed 4 times.Pulled all 5 parts and examined them.No change or difference in any of them.If there is a change,it has always been my contention the mft should take back on a claim without affecting return reserve.If that part had to be redisgned,why continue to sell the old part number that must be inferior for what ever reason to the public?We have gotten so heavily into direct shipped parts the mftg dosen't have to stock.just refer the order and take their markup.No return reserve or incentives for the dealer anymore.

[Chuck Hartle]

Supersessions are a part of any dealership's life. Supersessions can carry many different reasons, but we have found most are for the following reasons.
a) The manufacturer has changed the vendor who is supplying the product
b) The vendor has changed it's price so the manufacturer will change the part number to substantiate the increase/decrease in cost
c) There has been a design change or upgrade from the vendor on the part number. Campaigns and such.

With the Reynolds and Reynolds system, it is very easy to "undo" and part number that the mfg is superseding back and forth in program 2103. Also, you can do a supersession with a "hold" so as the part number will not become a memo (Status (RB) until the old part number qty has been sold to zero. This creates a status of RBH (Replaced by Hold) that you can easily run a 6910 report and I would highly recommend that you run a report of these parts first when building a return to the mfg first before looking at any other idle capital. Almost every mfg we work with identifies and allows these parts to be returned over a quarter before becoming non-returnable.

ADP, in a newer release earlier this summer, came out with an "undo" in their PN program, similar to the 2103 "undo" prompt in ReyRey.
Under the PN menu you now have UP for "Undo a Part Number change" and UD for "Undo a delay part number change". Both of these give you the ability to kill supersessions that are reversed or entered in error.

Both ADP and ERA offer solutions to the ever increasing supersession issue THAT WILL NEVER GO AWAY and seem sufficent for the present.

[imacdude]

Chuck,

Thanks again for the words of wisdom. I have been speeking with representatives for some of our Manufacturers. One of the threads of our conversation involved the manufacturer providing notice to the dealer of part number changes and allowing return for X number of months (lets say 6). At the end of the six months the part would no longer be returnable, and the Manufacturer would sell it out and it would become obsolete. No more return 12-24 months after the number change with old parts in the system for 3 plus years, etc. I stated that if given notice and didn't return these old parts that I (the dealer) would be responsible for selling/disposing of them. Is this a reasonable solution?

i.e. Superceded parts turn Obsolete ofter six months?

[Vernon]

Well after some thought I will still disagree.First I have looked at way to many part number changes through Ford to think part number changes occur because of a price increase.To often I have found in working for dealers other than my own,dealers who have lets say 5 different parts 1 superceeding the other and have pulled them all out of the box to find the material and looks to be exact.Now on the other hand Chuck,you may be correct in that the number is changed to indicate a new supplier.Even in that case if the specifications are the same why change the part number?In other words are the manufacturers saying the part is no longer the same?Why if that's the truth are many systems set up to upgrade the part number to the new part number if you want,when you install the new price tape monthly.If you set your system up to automatically update the part number with the price tape and sell it under the new part number you are basically saying it is the same aren't you?I have seen part numbers change especially on newer numbers because warranty trends that the manufacturer has maybe says there is a very high failure rate with a particular part.It looks like the manufacturer would want these particular parts off the shelf for customer satisfaction purposes and call for all stock to be returned but this is not the case at least with Ford at this point.As for the post of wanting the manufacturer to take back all parts within a time period or eat them,whoa this would be very dangerous because of the various systems within the dealer body and how each system deals with part number changes.And although I have never worked with the Reynolds system,I have heard only good things about the company and do realize they have a pulse on the problem and deal with it a little better than others.I do think if the manufacturers agreed to handle part number changes in the way outlined above it would make the obsolesence problem even bigger than what it already is today,but I also think it will never fly because the problem of part number changes and how many changes monthly is much greater than what anyone realizes.The guy with 1 million in parts is much more aware of this problem than the guy that has 250,000 in parts.I will still state unless proven otherwise,part number changes are planned obsolesence and is known within the industry causes mass confusion.Think about it Chuck,Edisons home in Flordia still has the same light bulbs it had from the start,if light bulbs were made that good today,we wouldn't have to buy very many would we.They build them today with planned obsolesence.Same way with parts,but since they don't go bad sitting on the shelf they come up with part number changes to sell more.It's a sellers world.And you are right, part number changes for this reason aren't going away.And if the different manufacturers agree to send the dealers a list of part number changes back for credit,it would be because the bean counter decided the manufacturers would come out ahead.They would obsolete more dollars of inventory than the parts they would take back and the part number changes would only increase month to month

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Vernon Swords

[Chuck Hartle]

Vernon,

I didn't realize someone would be so passionate about part number changes. I do believe you are giving too much thought to the whole process. After working with several manufacturers and their supply chain managers for the parts division, I can tell you it really is all about change.

At the manufacturer level, each part number is a source itself. If you change a vendor, you issue a new purchase order. The vendor has to make it to the same specifications as the old vendor, so why not have the part look the same. As you stated, a light bulb is a light bulb and it can only screw in one way with the right type of thread. But it doesn't mean that you can have several different suppliers of light bulbs.

Several years ago, being involved with the Mopar Master Parts Managers Guild, Chrysler informed us that they were going to suffix all of their part numbers. They were going to add two alpha characters to the end of the part number. The first part of the number would stay the same example:
5281090 could become
5281090-AA then
5281090-AB then
5281090-AC

At some point, the number might change to a 5281090-AD and be different than the 5281090-AC.

They made a point to tell us that we might as well not complain about this, but to learn to live with it. This decision was made by the Chrysler Engineers and it would make it easier on them. Go figure.

As I have learned, it is hard for us to comprehend how supply chain management is handled at the highest level, but I can assure you that there are different reasons for part number changes, and just about every manufacturer does them so it must be a accepted practice for specifics not just planned obsolescence.

Chuck Hartle'

[CroweChizek]

There is no doubt that part number changes have caused many a headache for parts managers. There is also no doubt they will continue to cause headaches. They are part of the business. I would have to be shown hard evidence to believe that they are planned obsolescence. Looping part numbers tying up a terminal were always a headache. Im glad to see ADP has come up with an undo part number change function.

[Vernon]

Yes I am passionate about the thread.One more question and I will let it rest.If a part is the same specs but the supplier changes,then why is the first,second,third,and forth part numbers no longer returnable but the new part number or current part number still returnable if it is not planned obsolesence?Part is still the same right?Same specs right?Your probably going to say at this time your system should update to the new number.So if that is the case why do most systems give you the option of leaving the part number in your system the same until qty reaches zero?Maybe that is a appreciation/depreciation question.It would really be nice to be able to set the system to say with the new price tape,if a part is going to depreciate through a part number change leave it alone.Or if it appreciates automatically update to new number.That would be a option and a good one.Often times a part number depreciates when changed and gets sold under the depreciated number.Yes all manufacturers are guilty of changing part numbers on a mass scale,but after 20 years in the parts business I have yet to see why this really occurs.My point is,it is really important on how the in house systems handle these part number changes.Also important how each manager deals with these changes because of the money involved in gains or losses by these changes.Important because of the millions of dollars of parts that are scrapped yearly by the dealer body each year because these changes do happen on a monthly basis.I wouldn't think Chuck you could dispute that.Can or will we change the facts?I doubt that very seriously.Do we need to apply thoughts on the whys and hows?I would think so.Until you as a manager decide to give thought to this topic,I would imagine this is causing huge problems to your parts inventory today as I write and have either accepted the fact and theorys of the past or you actually have thought about it and have a plan of attack and do indeed address the problem

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Vernon Swords

[Vernon]

So Chuck are you saying part number changes do obsolete inventory?Just that the manufacturer dosen't mean to by part number changes.I suppose there is no software available in todays cyber world for the manufacturer to track the new supplier changes without changing part numbers.The manufacturers screw us with these changes through just plain blind luck I suppose.Bet they have never heard the dealer bodys concerns on this matter or ever studied why so many people in the market order parts every day when they have the old number in stock.Yes I will agree bad management but happens daily and we just have to deal with it as people above say.Parts managers and counter people have all the time in the world.Not dogging you Chuck,I just disagree whole heartedly.Did you know Ford has no problems at the pdc on this matter.They delay all their part number changes until the old number is gone.A fine example is the new spark plug number changes.Not all your spark plugs changed numbers on the update tape,but if you went online you would see why they didn't,Ford still had stock on the old numbers and would not release info on update tapes until they sold the old part numbers.Practice by them happens monthly.Just my view