Service Dept Losing Higher Dollar Repairs

[Fixed Ops Mgr]

I have noticed more of a trend developing in my store and need to get a handle on it somehow. Recent example from this week is a service consultant sold a transfer
case replacement to a customer and quotes them the price. Supposedly sold the job and we ordered the transfer case in the morning per service consultant. Customer
calls back late that day and says they are taking the truck elsewhere to get it repaired because an independent repair shop is half of the price. Meanwhile the transfer case
has written and processed for shipment. Called SPAC to cancel it and it is to late. Now I will have a transfer case which has good stock at the local PDC's and large powertrain
dealers in my area have it at cost minus. This is a part number I probably won't sell and I don't need it setting here.

Last month the same service consultant supposedly sold a set of fuel injectors. Ordered the fuel injectors cso per advisor and received the next day. The next day when the injectors arrived
the service consultant said the customer is not going to fix the car now. Meanwhile RIM put in 6 more injectors so now I have 12 fuel injectors that I don't need. I am at the point that I do not
want to order any parts for large repair jobs anymore because I fear the job will be lost.

Back to the transfer case

Should I:
1) Return it and take a 35% hit on this cso order. Who should pay the 35%? Not parts fault.
2) Put it on locator and hope it sells, probably won't.
3) Using my return reserve is not an option.
4) I feel the service dept should be paying something for their mistakes.
5) What should I be doing to avoid future parts losses because of service dept losing repair jobs.

[possum]

I would have a meeting with your Service manager (and advisors and techs or he/she can pass it on to them), about the cost to the company in handling fees. I would explain to them GM's return policies, CSO returns, limited return reserve, and mention that if it continues, the 35% will be passed along to Service. But remember that the CSO return can only be used for mechanical parts, not trim or body items.
We also regularly get paid up front for special orders, even in the shop, especially for new or infrequent customers. I also put notes on the customer record in our DMS if they fail to return for any parts, even warranty.

[TimK]

Now I will have a transfer case which has good stock at the local PDC's and large powertrain
dealers in my area have it at cost minus.

If you can get the about the same or more discount from a local dealer than GM you should get it from them in the first place.
Very easy to return it too.

[PartsPlant81]

Now I will have a transfer case which has good stock at the local PDC's and large powertrain
dealers in my area have it at cost minus.

If you can get the about the same or more discount from a local dealer than GM you should get it from them in the first place.
Very easy to return it too.

Normally when you buy/sell a part less than cost the part is non-returnable.
We have had the same issues happen at our dealer. Now we get deposits on customer pay special orders and advisors sign off on the special order cards.

[Richard]

Should I:
1) Return it and take a 35% hit on this cso order. Who should pay the 35%? Not parts fault.
2) Put it on locator and hope it sells, probably won't.
3) Using my return reserve is not an option.
4) I feel the service dept should be paying something for their mistakes.
5) What should I be doing to avoid future parts losses because of service dept losing repair jobs.

We had this same issue. The dealer made the decision, if Service orders it and loses the job, service pays the restocking fee. If parts orders the wrong part, parts eats it, and any cost associated with getting the correct part quickly (freight, ect).

SOP's are now prepaid, and the advisors are held accountable.

[Fixed Ops Mgr]

Thank you all for the ideas

[partsman103]

1- either pass along the 35% to customer
2- pass along 35% to Service Dept.

[Denise Trimble]

1- either pass along the 35% to customer
2- pass along 35% to Service Dept.

We do this as well. I am interested to know if the Advisor is [u]actually[u] selling these jobs, or not. I worked at a store where one Advisor "sold" work only to have the customer "back out" of the job later. Our Service Mgr. began to follow up with customers in order to try to save the jobs, only to find the customer declined the repairs and one felt the Advisor should be dismissed. She soon was.

Otherwise, your DSM may be able to help you return the high ticket item(s) once in a while. Ours helped me return a bus axle mis-ordered by our SM by copying a part number down wrong

[gmsubparts]

What return code uses "return reserve"?

[PartScott]

What return code uses "return reserve"?

Type 01, regular monthly return.