Special Orders

[kpratt]

The factory is putting alot of pressure on the dealers to bring CSI and SSI scores up to a set level. The dealer wants a program which will assure that special orders do not get put on the shelf and left to collect dust. My current system pulls the parts 30 days after receipt and either returns them or puts them in stock for open sale. Trouble arrises when a customer who can't get in because service is too busy comes in late and the parts have been returned or sold. This seems to be a Catch 22 where I am damned by the dealer for too many special orders making their way into the inventory or damned by the dealer for low CSI/SSI scores. How do you handle special orders? Who is responsible for consumer contact? Who is responsible for the special order part once it is ordered? You can e-mail me at kpratt@accessone.com Thanks

[This message has been edited by kpratt (edited 02-13-99).]

[Chuck Hartle]

Hi Ken,

This is a subject that frustrates us all. Special orders, as much as we hate to admit it, are a constant problem. Personally, we have eight reports we run daily to attack the problem. These reports show parts available by service advisor, another by parts advisor, and others to track the time the part(s) and how long they have been in inventory. A good rule of thumb we have been using successfully is to send back any part that is over $100 in cost and stock the rest.
Besides our service advisors being directly responsible for contacting the customer, after 15 days we notify the customer once by mail, and twice more by phone over the next 10 days. This means that we have contacted the customer on an average of 4 times in the special order process. While there are certainly exceptions to this, such as multiple parts for the same customer that come in at varying times, it really has given us an

[PARTSQUEEN]

Hi all -

We also had a problem with SOR's, until I realized that the Service Dept was making too
many decisions for the Parts Dept. I sat down
with the Service Mgr and involved him in the
process, and then sat down with the Parts
Dept employees and involved them also.

This is what we came up with -
1- No parts are ordered for Service unless
an appt is made for the customers return
visit.
This required that I learn to access the
Service side of our in-house computer
system, to check up on appts. When we
first started the new system, the
writers wrote down phoney appt dates.
This stopped as soon as they realized
I was checking.

It also became necessary for the Parts
Dept to run every part in the mfg's
system and advise Service of the part's
availability.

2- Every non-warranty part is paid for in
advance unless the car is down in the
shop.

Every afternoon, about 20 min before
cut off for orders, I take my fresh air
break, and walk the lot to verify cars
down.
3- Overnight freight charges must be paid.
Mazda and Chrysler both reimburse for
freight charges for warranty repairs.
All others are paid by either the Service
Dept or the customer.

Most customers are willing to pay for the
convenience, and once I started adding
freight charges to the shop ticket, our
overnights were cut signifigantly.

This had two benefits - it cut our
freight bill (boss's pet peeve) and
raised our stock order performance rate.

But the most important thing is constant
vigilance!! Special orders, if left up
to the Service dept can create a huge obsolesence problem in a very short time.

Hope this helps - any questions, feel free
to E-mail me or call 732-747-0352.

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[i][b]It's just a job, not a life, Enjoy today for tomorrow it's gone!! Joani [b][i/]

[robs007]

We also make the Service advisors make appointments before ordering any special order parts. Customers still cancel there appointments but this is still a big help. With UCS we are able to create a SPO and put it on a different order type. This way there is already a special order in the system and it just has to be changed to a daily or stock once the appointment is made. The advisors are given a report each day showing them which parts haven't been orderd due to no appointment. This insures they know the part isn't ordered yet. They generally give us back the SPO card with the appointment date on the card, if for some reason the card gets lost or the counter person forgets to change the order type it will show up on there report again in the morning. This system has helped a great deal in reducing the amount of special orders left on the shelf.

[worldparts]

Notifying the customer once a special order parts arrives has always been a problem. Here is an idea. Add "E-mail" address to your special order form and send the customer an "form-letter" e-mail notification. You can then point the customer to your dealership web site to schedule the service appointment.

------------------
Bob Van Der Ploeg
bob@worldparts.com
http://www.worldparts.com
ICQ: 7660816

[Garry House]

SPO's are a major problem with most of our consulting clients. The "best" process seems to be as follows:
1) SPO's may ONLY be ordered by the ASM (Service Advisor) and ONLY AFTER a return appointment has been made(10-14 days advance recommended). The Return Appointment MUST be logged into the Dealership Computer System. Whenever possible and appropriate, C/P Parts should be "Pre-paid" by the Customer. An "SPO on Order" Sticker MUST be Affixed to the Customer's Windshield (below "Next LOF Due at" Sticker).
2) Parts Manager Prints, Duplicates, and Distributes Daily "SPO Report" for/to ASM's. ASM's "highlight" their Appointment/Reser- vation Log once SPO's are stocked in, and call customers to Confirm Appointments. Simultaneously, Parts Dept. mails "Appointment Reminder Card" to Customer. If logistically possible, Telephone customer "One Day Prior" to Appointment with additional reminder.
3) Immediately Follow-up "No-Shows" with Phone Call, and if necessary, with "Final Notice" Postcard at 25 Days After SPO Receipt.
4) At Day 30, Either Re-Stock or Return the Part. Fact: After 30 Days, 50% or Less of SPO Parts will be picked up, EVEN IF the customer "Pre-pays" for the part. Why challenge those odds?
5) Document your SPO "Customer Notification" Procedure, and if logistically possible, "Log Every Attempted Notification". This will assist in diffusing any CSI/SSI/QCP Problems.
Garry House
Senior Staff Consultant
NCM In-House Consulting Division