Service & Parts Conflicts

[Chuck Hartle]

I am doing a show in October on NADA's skylink entitled "Parts and Service: Turn Conflict into Opportunity."

It deals primarily with the conflicts that can arise between the service and parts departments and how to fix them.

I am looking for some input from both the service and parts managers on this issue.

Service Managers;

What is your biggest frustration when it comes to your parts operation?

What areas do you have constant conflict in that you are looking for resolution?

What is your relationship with your parts manager and the parts department overall?

Who holds the final authority over a conflict between the two departments?

Any input would be welcome as I have to have an outline presented by the end of July... Thank you,

Chuck Hartle'

You can email me directly at chartle@autowire.com if you want this to remain confidential.

[Michael White]

the relationshp I have with our parts manager is quite good. I chose the parts manager with the approval of our owner. Botyh of us have worked together since about 1978 when was a tech and he was a parts counter guy. We have always shared the same goals. One of the wise things our group has done is to have each of us, including our bodyshop manager, share in eachother's success. We all get a % of the overall gross and the individual managers get a % of their own department's net. The parts manager and myself talk all the time and share in each other's ideas and possibilities. both of us have continued growth and great ideas.If there are possibilities in our ideas, we go foir it. There has only been one time in our 12 years together as managers when we needed help in a decision. We went to the owner to help decide which oil company to use. We are not unique in relationships, but there are a lot of owners who want their managers fighting tooth and nail. Ifour partsmanger did not have a lot of talents, and the reverse is true, then I/we would be talking to the owner. I think one of the great management benifits we both share is becoming managers together, and learning at the same time.
I wish we had more parts in stalk, but parts does a pretty good job. We are both focused on the importance of doing work inhouse, including accessary installations, at the same time being competitive.
One thing all of you can try is to put your office supplies in the parts inventory, and charge out the office suppplies at cost plus 30%. Our office supply costs significantly dropped. Our parts manager has a lot of talent in buying right and saving moneys.
Mike White

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[Chuck Hartle]

Hey Service Managers,

The parts managers are sounding off with 7 replies.... I assume that the service managers out there are happy with the parts department overall???

[jrcal]

Chuck, Service Managers are more of the "fix the problem, not the blame" kind of people. Listing all the complaints isn't going to fix any problems. As most service managers have stated, communication is the key to fixing the problem. Listing all my complaints about the parts dept will solve none of the problems. I would prefer reading about solutions others have used. I am not interested in the whining. Giving them a towel to cry on and asking them to suggest ways to improve the situation would be a first step in improving communications!

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JC

[This message has been edited by jrcal (edited 07-19-99).]

[Chuck Hartle]

Jrcal,

Thanks for you candid response. I did not mean for this to be a "complaint" forum with a crying towel. We have a limited time (2 hours) to do this presentation and what I really want to know is what are the most frustrating issues that service and parts have with each other. This way we can offer solutions that work in the alloted time we have.

I would love to hear if you have some solutions that have worked with your relationship between you and the parts manager.

I am sorry if you thought this was a "bitch" session. That was not my intention at all. You have to know the problems before you can begin to address them and look for a mutual solution to correct it! Thanks again.

[Mike Davis]

Hi Chuck:

I agree with a lot of the input that the others have posted in both the parts and service areas. The biggest point that I would make in regards to this issue is that there needs to be someone with a foot in both camps to resolve issues. A lot of dealers have resorted to a Parts & Service Director to make final decisions, this may or may not be feasible depending on the size, but can be a working parts or service manager that oversees the other as well. The biggest issue is that both departments are really each one half of a whole and until everybody starts looking at it in that fashion conflicts will continue to arise and grow out of control. There are valid issues on both sides that need to be resolved but everyone gets caught up in the moment and goes to war over small issues, the real concern needs to be taking care of the customer. If the issue is scheduling, parts inventory, etc. it needs to be looked at and resolved with everyones input AFTER the customer is taken care of and gone. The most effective way that I see this resolved is to have a pay plan based on combined departmental net, not gross, and all the departments should be included at some level. If they are paid on net they will help everyone look out for expenses and help them succeed. This won't work for everyone because some people enjoy the conflicts, but do you really want them at your dealership working with your customers and employees.



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Mike

[sallen1]

Chuck, I though I'd give some input for your presentation. I saw you asked a yes/no qustion for survey and I answered that too, but this is from the point of the dealer. Instead of adding to the bitch session (of which you got lots of input), I though I'd tell you what has been successful to keep conflict to a minimum.

First, I hold weekly staff meeting with all managers. We always go over the DOC for each department, compare performance vs. forecast and address missing information (such as the body shop seems to turn alot of work at the last week, where will we end up?). Sometimes there are more cars sold than what is recorded, where are the deals? How many cars are sitting in recon? What's holding everything up? We also all go through the inventories to make sure they are accurate. I then ask if there are any issues that need addressing, especially any conflicts that exist between departments. This get stuff on the table, you'd be surprised at the discussions!

If I'm not available for the meeting, it still takes place and I call in to find out what happened.

Second, and most important, everyone at the dealership is constantly reminded of the business goals. I always reminds everyone: With the lack of profit, no one gets paid.

My organizational strategy: We are all here for one purpose only, therefore everyone shares the same problems and successes.

scott

[This message has been edited by sallen1 (edited 07-20-99).]

[Michael White]

Sallen 1, in our store, if a used car is not sold within 90 days, it is wholesaled. In the long run, we make moneys on wholesale units, However, I do not have control in the variable department when it comes to making blundders and the reverse is true. When sales makes a mistake, it can be a huge one. For this reason, I would not like to participate in the variable net. I am sure most GM service Directors would feel the same. In our store, fixed operations, approx $600k gross per month, is dominate. Sales does well,but not even close to us. In 14 months,variable out grossed us 1 time, but never out netted us. For me to particiapte in variable net or gross, I want to have some input into the process. This is where the problems arise from the variable department. As always, it is always great to have a open discussion with you
Mike white

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[This message has been edited by Michael White (edited 07-21-99).]

[Mike Davis]

Mike:

I would challenge your assertion that you don't have input. Everyday someone from sales comes into the parts or service department with an "unapproved" request for something. I have seen this at almost every dealership I have been involved with and have seen these request filled routinely without approval. SAllen's outlook is a great one that will get everybody looking out for the bottom line and pulling together. If we all look at our check stubs we get paid by "XYZ Motors" not by parts or service or sales and there needs to be some incentive to do the right thing for the dealer not for our individual departments. While my pay is currently not based on store net I have been on this plan before and have never seen so much interest in the overall welfare of the store as that shown with this in place, including myself. Even if limited to just fixed operations it is a great way to foster teamwork and cooperation. I bet that SAllen's managers don't have the surprises on the financial statement that others do.

That's my input for what it is worth.

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Mike

[This message has been edited by Mike Davis (edited 07-21-99).]

[Michael White]

Mike, Thanks for the response. It is true that everyone in fixed does have minor influence on the variable department. However, it is not major influence. Do not get me wrong; I work very hard to support the variable department.They are our best customer and I try to treat them that way. When I do write something to 15A or 15B, it is reviewed, and sometimes adjusted to show good faith. We do all the used cars including details, as well as accessary installation. I fell there is a strong cooperation. As a parts and service director, your cup must be full. How much time do you have to dedicate to the significant improvement of the variable department, other than input as weekly manager meetings and brief discussions with the other managers and assisting them in the PDI and supportive items for the sale process? If you are as busy as I am, I really do not have the time. But when they request assistance, they are always given a high priority. Service is always a supportive group to either the customer, factory or to themselves. But I am not in the position to influence how much trade in sales gives a customer, or how they will get a questionable finance deal through.
Mike White