Combining parts delivery runs

[fburrows]

We are currently working with a dealer customer to find some innovative ways to combine long distance parts deliveries to achieve greater efficiencies. For instance on one run we will combine the delivery of a Chevrolet dealer with a Ford dealer to reduce the delivery cost of both dealers. On another run we have found a newspaper delivery guy that has extra space. We know of a GM, Chrysler and Ford dealer group in one city that has successfully combined their long distance runs. Do any of the parts managers currently have such arrangements and how are they doing?

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Frank Burrows
Automotive Business Solutions
frank@autobusiness.org

[DMuller]

Frank,
In the past I worked for a dealer that had four locations and I managed to convince the other parts managers to combine our deliveries. Since I managed the largest of the dealerships, I took the responsibility of coordinating the deliveries. I set up a person to be dispatcher. The other stores called the dispatcher with the deliveries they had and he would set up the pick-ups and deliveries. This worked fairly well.

There was one problem though. There was always a priority issue regarding the order the deliveries were made in. There were also conflicts if someone needed to reroute a driver to make a special pick-up at another dealer for thier service department. These issues were generally settled by me. Since I was the senior manager, I had final say over these matters.

However, in a scenario where there is no clear final authority, there is alot of room for arguing and hard feelings. In the long run if the various dealers can not come to terms, they would most likely drop the idea and return to thier old ways. Also, work out an equitable expence distribution. What is each dealer's contribution to the program? How many trucks, how many drivers, ect. If one store has four drivers and the other has two, the dealer with the four trucks is getting the short end of the deal. The dealer with four trucks is only realizing a fifty percent increase in available deliveries while the dealer with two trucks is realizing a two hundred percent increase.

I'm telling you this so that you can perhaps iron out some of the unforeseen headaches before you start your program.

If you can get the people to work together, you can greatly reduce the overall delivery expence and at the same time increase your delivery range and possibly open up new markets.

Good luck!
Dan