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    « Amazon Has Record 28% 2nd Quarter Growth, Same-Day Delivery Helps | Main | UPS Revenue Increases, Will It Go Same-Day Delivery? »
    Wednesday
    Aug312016

    Same-Day Part Delivery for Toyota Begins

    When so many major companies in the retail industry are engaging in Same-Day Delivery, if you sell any type of product, it may not be a bad idea to do it too. The service thrives on volume, and if you are as robust as Toyota is, it makes sense to initiate a delivery program that can feed dealership parts the same day.

    Auto News reported that this is the direction Toyota and Lexus have taken, offering same-day parts availability to their dealerships. As dealerships are able to get their parts faster, daily operational services by technicians will be completed faster. This ultimately produces more happy customers with service, which is an area which dealerships find to be challenging to consistently provide. The service department seems to get the brunt of negative surveys, especially when a customer's vehicle wasn't repaired in a timely manner due to a part not arriving. Now, same-day part deliveries will streamline auto repairs, as well as routing part inventory from one dealership to another.

    The new same-day parts delivery will create positive changes. Parts manager Luciano Restrepo of Keyes Lexus in Los Angeles, which is already doing same day, mentioned in the article that there's been nothing but success so far. Restrepo stated, "That is the best thing Lexus ever did for us -- the fact that we can get a transmission and a vehicle in and out in one day." He went on to say, "I utilize the service every single day." Toyota has made the correlation between faster parts delivery and faster service, equals better service.

    Same-day delivery is going to be something new for Toyota, being that deliveries use to only be made next-day. Yet, faster part service can lower or even eliminate loaner car expenses. Some dealerships that offer loaner cars as a value-added service, may have specific loaner vehicles, but when those are being used, they have to use their used or new car inventory. This results in additional wear-and-tear on them. Faster parts means less loan time. Also, the amount of discounts extended to unhappy customers with delayed vehicle repairs are drastically lowered. In every industry, demand is increasing for higher service levels and companies are seeking to distance themselves from competition with same-day delivery.

    This is why same-day delivery is expected to reach $987 million by 2019. One of the most recent newcomers to provide the service is Wal-Mart. This past June, the world's largest retailer announced the launching of several same-day grocery delivery pilot program in Denver, as well as in another unidentified market in July. In the US alone, Wal-Mart has over 3,400 Supercenters in the US, which positions the retailer to easily provide same-day services within any major US city. It won't take long for a service convenience like this for loyal Wal-Mart shoppers to catch on to it.

    Service has become a big factor in customer loyalty, making it very apparent why Wal-Mart, Amazon, and now auto manufacturers like Toyota, are going in this direction. Many companies turn to a Same-Day Courier like A-1 Express to develop a cost-effective same-day solution that makes sense for them. The Pittsburgh Courier has implemented route delivery services, part returns, long-distance services, and more, all within one day. With a national footprint, Toyota and other manufacturers can outsource to A-1 Express for part shipping throughout the US.

    Reference: 8.15.16, www.autonews.com, Jim Henry, Same-day service aims to give Toyota, Lexus stores competitive edge

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