GM, Parts Availiblity & SPRINT

[Richard]

It seems everytime you look up, yet another part is going on backorder, sometimes indefinatly. I get answerbacks all the time that say "currently this is no vendor", or "undergoing contract negotiations" or "product undergoing testing for quality assurance", or, My VERY Favorite, "vendor is short parts to make kit". You dutifully put in your SPAC case (knowing that you just lost all your discounts, return reserves, ect) and wait..........and wait........and wait. I just don't understand why GM doesn't care about the customers who already bought their product, versus the one who MIGHT buy one. Silverado truck bumpers are a prime example. The last one I ordered took 6 weeks, and that was with a SPAC case, and me calling everyday to give them sprinting dealers names, phone #'s ect. I think the dealers need to find a way to get us our discounts, or at least return reserve BACK on these type parts. (btw, the thing that got me started on this rant? part # 12521285, ordered 11/12/99, Seat Adj for a 1997 Park Ave, SPAC case since 11/23/99, still no date on when I might get one)

[sallen1]

We only sell Cadillacs and the parts situation has been terrible, especially with the imported Catera. For some reason, service parts were not anticipated for the car and anything important, like struts, oil pumps, etc. came from source which means Germany.

Fortunaltely for everyone, the new head of GM-SPO is a guy Cadillac dealers are very familiar with, John Smith. While the product resurection of Cadillac is a year or two away, he's the one that made it happen. I've seen some of the stuff and it's terrific. As an example, there's a new factory being built in Lansing for Cadillac and it will be on-line next year.

If Smith was able to get such a drastic investment in one of the car divisions, he's got the tools to make the same thing happen at GM-SPO. Besides, he seems to understand and care about the dealership process.

I look forward to the change, I hope it comes soon!

scott

[Richard]

OH, new update. Floor mats. Undergoing "engineering Changes"
Should have seen the General Manager face when I told him that one. I actually had to call SPAC back so he could hear it himself.

[Robert a Bamert jr]

GREAT TOPIC GUYS,but as we all now it doesn't seem to get us any were telling the same stories we've told to our rep.i work for a large med duty fleet,and let me tell you they don't take the answers we all give,so well .A truck down is big $ and it gets tough.you have to have a good sence of humor
to survive in this business.it seems to work
for me also to do all the leg work for the
spac dept (to make the calls)hand holding has
always been a part of the business though,just take the wholesale bus.you have to not only sell the part,but fix it to.
SOME THING WILL NEVER CHANGE,but its what we
all do (what we have to)and i still like it
for now!

[jdpetey]

You may lose discounts and reserves by putting SPAC Cases on parts, but, by SPAC'ing parts as soon as you can, you will almost always get the part faster.

You have to outsmart GM when it comes to parts on backorder.

I order all my parts on DRO's, except for OVN's, or parts that I have checked availability and found they weren't at the local PDC.

I place my stockorder daily and review the answerback for backorders and referrals. I IMMEDIATELY UPGRADE ANY BACKORDERS. I then wait a few minutes and request all pending answerbacks to see what was referred to other parts plants. If a part wasn't referred to another facility right away, chances are, it needs SPAC'D.

So,since we use computer special ordering, the VIN# is usually readily available to create a SPAC case. Then I'll SPAC that part and usually receive the part before the stock truck arrives. Not always, but at least I get in line sooner.

Our GM Rep. was at our dealership recently and was amazed at my methods. He INCORRECTLY informed me that a part had to be on order for at least 24 hrs before it could be SPAC'D. NOT TRUE!

If you wanted to OVN a part but it wasn't available, putting a SPAC case on it right away is the only way to make things happen.
I'll gladly forfeit the discount and reserves to help a tech turn a wrench and satisfy a customer at the same time.

GM pays OVN either way. This is also their customer!

Thanks
jdpetey

[This message has been edited by jdpetey (edited 02-12-2000).]

[Richard]

My original post wasn't to complain and tell horror stories about backorders, but to be amazed that GM can't keep contracts on outsourced parts. Outsourcing is supposed to be the wave of the future, which will 'save' the Domestic Auto Industry. GM supposedly looked at Toyota as a model. I can't believe they looked very deep, because before I came to a GM dealer, I worked for 2 Toyota dealers. We never had the backorder problems that GM has, except on parts for US Built Corollas (at that time the only US built Toyota). My post really concerned the fact that GM lets contracts expire constantly, leaving the dealer body with egg on our faces, trying to tell a customer that GM has no vendor for a part for a vehicle that is still in prodution. Example; 999863 bumper pkg, old body CK truck is still in production, but 6 months ago it took weeks to get a bumper kit for this truck. I had customers who just couldn't believe that GM had bumpers to build Trucks, but not to fix their wrecked truck. That was my point, the fact that GM seems to be more concerned with trying to build more trucks that Ford, than the satifaction of the customer who already bought.

[Chuck Hartle]

Richard,

I don't consider you 'airing' your concerns as complaining. I view it as total frustration. I have had the opportunity to view the secure website Ford has for it's dealers and Ford seems to have a worse supply problem than GM. One parts manager in the forum on the Ford site has tracked his 'fill rate' on daily orders and stock orders for the past 6 weeks and it is 64%.

He rationalize that there is no possible way that the depot fill rate can be in the high 80's as the professed.

Two things bare mentioning here. Neither, of course, will make the problem go away. First off, with model 'proliferation' comes part number proliferation. The more they change models, the tougher it becomes for the manufacturer and the dealer to 'keep up' with the 'fragmented' demand that occurs. To me, the whole key to 'outsourcing' will be how effectively you can keep your inventory pure and track demand properly to anticipate the right trigger to have the supplier replenish stock in a timely manner to avoid backorder situations in the supply pipeline. Again, in a word, proliferation! With more parts you have more suppliers and the logistic nightmare this causes is obviously a serious problem.

Another thought along these lines are new model year problems. Parts for new models that seem hard to get have been a sore source of frustration for all of us. It seems amazing that the new models seem to show up on time to sell the vehicle in the dealership yet parts for the same model are impossible to get. The manufacturer has never let production inventories suffer to fix a defect on a model already sold to a customer.

As for you bumper situation on the older model, consider this. It is an older model and GM probably wanted to 'hold off' on ordering these parts from the vendor because the demand was low and the less GM orders the higher the price becomes. Volume equals discount and this is certainly thought out with the contracts all manufacturers have with their vendors.

Coming to a conclusion on this issue, it amazes me that with all the technology and communication tools that the manufacturer has this day in age that supply problems seem to get worse instead of better. I read a story a couple of years back about the agriculture community and the use of insecticides on the food crops. The study related that back in the early 1900's before introduction of insecticides that crop loss averaged around 20% because of insect infestation.
In 1996, after millions & millions of dollars were spent on insecticides and herbicide to try and destroy the insects, the average annual crop loss is still 20% !!!???###@@@

We all want a solution to the supply problem. Then maybe we can concentrate on really taking care of our customer and building consumer confidence in our products.

Chuck Hartle

[kpratt]

Chuck and Richard,

One thing that no one has mention is the sixteen million cars that were sold last year. We have Volkswagen, Audi and Subaru and are experiencing our own share of supply problems mostly related to the inability of the world wide vendors to keep up with the requirements of the manufacturers. As you are no doubt having trouble locating qualified people for your business they are experiencing the same problem. Add these two items to you list...