Mopar Special Handling Charges

[CTB]

Good morning,
Does anyone have any ideas or strategies to combat the monthly special handling charges Mopar is imposing on us? Their daily order=B/O policy is forcing us to use special handling for way more parts than I've ever seen before. The penalties obliterate so much of the profit, especially on wholesale sales.
Thanks.

[yosvany]

If its for a car in the shop create a vor for each part. if it is for a retail/wholesale customer just charge them the freight they are charging you for the SH.

[Stevenspeaking]

When you order special there are 2 delivery options you can tie to the order. E type there is no charge unless you use more than 15% of your monthly purchases. A type which is dealer pays premium. If we use A we will collect the freight. Our service advisors are great in they sell it as an option and let the customer decide if they want to wait or pay. Warranty gets E because Mopar will not reimburse us for freight.

There is a nice monthly report in dealer connect that you can follow the 15% mtd numbers.
parts > reports > mopar parts sales reports >General tab >Select current month and program to special handling.

With knowing how much % is left that I can use I will upgrade stock orders with any remaining value. The trickle down effect of getting stock off backorder sooner saves us in having to special at the last moment for customers.

[Stevenspeaking]

also by upgrading the backorders (using transportation type E) they will not count towards the 15% if they take a 6+ days to ship.

"Special Handling orders (excluding Alfa premium and Dealer-Pay Premium) incur a 15% processing fee when the monthly total special handling order dollars exceed 15% of the monthly total gross purchase dollars.
Backordered items not available within five working days will not be subject to the 15% handling charge, but will continue to receive expeditious follow-up and shipment. "

[PartsDanager]

Not sure what's going on at Chrysler but did I just become thankful to work for GM?

[bigmac]

GM will copy their program soon.

[Stevenspeaking]

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These are the numbers from last month.
The 15% fee only applies to any amount past your allowance. So I was able to upgrade 44K with no fee.

An order upgraded to special (trans code E) will usually arrive to the dealer in 3-5 days if any other warehouse has it. If left on a daily order the PDC will wait for the stock trailer to get there and then stock put-up before releasing it (weeks) The upgrade also moves you up the waitlist significantly on backorders.
I was able to upgrade all my customer orders and most of our stock orders as well with extra to spare. When the stock backorders release it has usually made it past the 5 days putting it in the excluded list. Last month 22K was excluded

I could see this being more difficult with a dealer that does wholesale.

[Thirdmoon]

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These are the numbers from last month.
The 15% fee only applies to any amount past your allowance. So I was able to upgrade 44K with no fee.

An order upgraded to special (trans code E) will usually arrive to the dealer in 3-5 days if any other warehouse has it. If left on a daily order the PDC will wait for the stock trailer to get there and then stock put-up before releasing it (weeks) The upgrade also moves you up the waitlist significantly on backorders.
I was able to upgrade all my customer orders and most of our stock orders as well with extra to spare. When the stock backorders release it has usually made it past the 5 days putting it in the excluded list. Last month 22K was excluded

I could see this being more difficult with a dealer that does wholesale.

Hello Steven,

Where will you see if you got charged?
Is it on your W-parts invoice?

[Stevenspeaking]

Thirdmoon with the report I use we haven't gone over the allowed amount. I know A - dealer pays premium will be on the w-parts invoice. Not sure of the 15% overage if it would be there or not. I would assume that's where it would be though.