It’s a great thing when you find that a small niche of a service like Same-Day Delivery is having such a large impact in the retail industry. The shift in e-retail, namely by front-runner Amazon, has made same-day delivery vital to compete for retailers all over the world. Yet, it hasn’t stopped there in with retail, automakers have also seen the benefit of it with having parts at dealerships at the right time to increase their operational efficiency.
Several big name car manufacturers have implemented same-day delivery and have seen how much it helps them service their customers. One example is Toyota, which this past August rolled out same-day parts availability to their dealerships to meet real time demand for repairs. The faster a dealership can get their parts, the faster the service repairs are completed. Repair times is a huge concern for customers, usually being a top complaint for local dealerships. This has been one way same-day part delivery is helping Toyota improve its’ overall customer reviews.
Toyota may be excited about same-day parts. However, other automakers are not so impressed to the point of implementing it themselves. Volkswagen is one of them, not being fully convinced that the benefits of the service ultimately outweigh the costs of it. Anu Goel, Vice President of Parts and Logistics at Volkswagen Group of America, talked about same-day delivery in an article by Automotive News. Goel simply stated, “If you’ve got dealers stocking the right parts in the first place, why do you need same-day service?”
His philosophy is to aim to ship parts faster and to get dealers to change what they are stocking. The part inventory itself will enable the dealerships to already have what they need to be operationally efficient. With same-day delivery, close-proximity warehousing is key and in order for Volkswagen to offer same-day part delivery, the automaker would have to add more distribution centers to its’ current seven, which could prove to be a costly task in itself. It does offer next-day delivery, and according to Goel, that is enough for now. He said in the article, “We are good for now,” he says. 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.”
Car manufacturers like BMW and Fait Chrysler US are also on board with same-day part deliveries, which shows that it may not be workable for some of them, but for others it is. It is all contingent upon the automaker. A Same-Day Courier like AQuickDelivery can partner with a variety of companies to perform the actual deliveries from one dealership location to another throughout Georgia. The Atlanta Courier already performs part pick up and delivery for car manufacturers, proving that there is a place for same-day parts. The fact that Toyota is heavily investing in same-day parts may prove to be the car manufacturer that spearheads a major surge in the growth of the service in the years to come.
Reference: 11.21.16, www.autonews.com, Jim Henry, VW’s Goel: Same-day delivery? Not yet