Over the past 10 -20 years we have moved to a ‘just-in-time’ model. Parts supply moved fromweekly stock order to daily stock orders. Overnight delivery is an expectation. The last 12months have shown how vulnerable we are to issues in the supply chain. With a shortage on new whole goods, customers will be relying on older equipment, so parts and service will be under more pressure to keep these machines running. Successful dealers will need to focus on what is within their control: • Parts inventory management will need to change. Min/max levels will need to change so dealers have parts in stock when they need it. Higher investment in parts inventory will be needed • Dealers will need to modify their order systems and work with suppliers to pre-order and work with customers to pre-sell. Utilizing the database and CRM will help dealers identify opportunities. • Parts availability will also have an impact on Service departments. Dealers will need to focus on customer Preventative Maintenance Programs (PMPs) and promote post-season/pre-season work to avoid in season breakdowns. Utilization of the CRM will be critical to identify machines in the dealers AOR to proactively contact customers.
KELLY MATHISON Management Consultant at Western Equipment Dealers Association’s Dealer Institute
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