Volkswagen Talks Pros and Cons of Same-Day Parts Delivery

It's not just retailers that have dived into Same-Day Delivery. Big name automakers have also begun to implement same-day delivery of parts to strengthen service efficiencies. So far for Toyota, for example, getting parts to dealerships the same day is working. The bottom line is that the service has moved beyond just being a trend for any company, even car manufacturers. However, one of them is not ready yet to say whether same-day delivery is the positive turn that the industry needs to improve dealership part inventory and operations.

Auto News recently discussed in an article about Volkswagen not in favor of pursuing same-day delivery for its' business model yet. VW has a greater focus on developing a supply chain process that helps dealers actually change what they are stocking. The part inventory itself will result in dealerships having the parts for operation efficiency. Service repair is one of the areas of a dealerships that customers complain about the most. It is imperative that the lead time to receive parts it minimized to improve repair times. This in turn, creates less miscellaneous costs to take care of the customer to make up for a lack of on-time repairs.

Anu Goel, Vice President of Parts and Logistics at Volkswagen Group of America, commented in the article about same-day delivery, questioning its' ability to be a viable solution. He stated in the article, "If you've got dealers stocking the right parts in the first place, why do you need same-day service?" The key for Volkswagen that would make same-day part delivery work is its' distribution system, which currently would have to expand to be successful at this type of program. The pros is that it works; however, the con specifically for Volkswagen is the automaker has seven distribution centers and would have to add more to establish a close-proximity system. This ultimately means a huge level of costs that VW isn't ready to provide.

Volkswagen currently does offer next-day delivery, which is productive and the company appears to be satisfied with it. Goel said, "We are good for now. With a 1 p.m. cutoff [for parts orders], we can make 7 a.m. to 8 a.m. delivery the next day. Seven buildings around the country allow us to meet that commitment." On the other hand, other big name car manufacturers are seeing same-day delivery aid in part inventory and service success. Toyota, which implemented same-day parts availability to their dealerships this past August, has seen a difference in real time repairs and customer service. BMW and Fait Chrysler US have also launched same-day part deliveries.

There are pros and cons to same-day parts delivery, yet it is all contingent upon the automaker's current distribution model, and how much would it take to shift from traditional warehousing to fast deliveries. A Same-Day Courier like A-1 Express is a viable option for care manufacturers to partner with to have parts delivered. The Los Angeles Courier has a national footprint, enabling it to pick up and delivery parts to dealership locations across the US. It does take delivery expertise and a large driver fleet to get parts from one dealership to another. A-1 Express could be just what other automakers need to compete and increase their service repair efficiencies.

Reference: 11.21.16, www.autonews.com, Jim Henry, VW's Goel: Same-day delivery? Not yet