Special Order Parts Return Process Options - Part 4
by: David Dietrich

This is Part 4 in a five-part article.

VII. Internal Special Orders, New & Used Car Departments

Another process that requires examination and is a source of frustration for all departments within the dealership is the special-order parts process for new and used cars. Without good procedures and communication, this aspect of special-order parts can create numerous internal problems for all departments. Parts can get ordered without stock numbers. The salesperson asks to have it put under his name and to see “him” when it comes in, then gets lost in the shuffle. Parts often get ordered without repair order numbers resulting in a billing problem. Many times, the unit may be sold and delivered prior to the part being received and the order is not updated to reflect that ownership has been taken. The part will be received and not charged to the unit causing the charges to not be reflected in the deal. When the part is received and the customer hasn’t complained of a problem the sales department probably won’t notify them to avert a negative CSI response. As a result, the parts department may be asked to return the part and have to incur handling fees or use obsolescence credit.

A way to consider the needs of the sales department, parts department, and the purchaser would be to charge the part to the unit at the time it is ordered. The part should be charged on a repair order or counter invoice, whichever is applicable. If the part is charged to a repair order it should then be closed. According to the dealership’s preference the labor may be charged in advance ensuring that all pending charges are levied against the unit. Consideration should be to never order a part without a stock number, the person’s name requesting the part, and a repair order or counter invoice. When drafting your own policy, it should be made clear how internal parts orders must be authorized prior to placing the order.

Any policy should be specific in outlining the responsibilities of each department to the processes adopted. Sales department responsibilities should include all authorizations relating to the sale transaction and billing considerations. As well, the sales department should provide a report of sold units requiring special order parts, including the stock number with the new owner’s name and address. This would apply to all vehicles delivered prior to receipt of the part/parts as well. This report should be provided on no less than a weekly if not daily basis. Communications and special-order procedures would work better if a daily report were generated. The parts department is now responsible to convert the special-order information from the stock number to the new owner’s information. Depending on the notification process being utilized in the store the customer is contacted upon receipt of the parts. This can be done within the parameters established for special order parts to have either the service advisor notifies the customer, a specified parts employee, or an arrangement for a mobile installation. The service department must also be supplied with the necessary information upon the part's arrival. Depending on the process the service department must contact the customer to set an appointment for installation. If notification is to be made by a parts employee an appointment must be established with a service advisor. Mobile part installation would require the service department to contact the customer according to the mobile installation process previously outlined.

There are benefits associated with the utilization of this process as well as some potential liabilities. This process eliminates, or at least minimizes, the need for involvement by the sales staff in the notification and appointment processes. Due to the lack in many dealerships of a defined role for the salesperson in handling specially ordered parts on new and used cars confusion often follows. By turning the process over to the service and parts departments that already have a defined method for handling special order parts we can eliminate that step. This should also help to minimize turnaround time from order to installation. Another advantage is to begin communication between the advisor and the new customer which will begin relationship building. Much like the often-attempted practice of introducing new and used car customers to service this will serve to relax their apprehensions about future transactions. Levels of customer satisfaction would be enhanced through effective customer handling. The issues of internal documentation and billing concerns are also addressed by billing parts to the repair order when the special order is generated. In some instances, it may also be appropriate to bill labor charges that will be incurred at installation. This will allow the office to close deals completely in an expedient manner to properly address sales commissions. The liabilities remain much the same as with many of our previously discussed processes. Communication breakdowns can occur. Improper transfer of stock numbers to customer names and addresses may make it difficult to determine who the part was ordered for and increase parts on the shelf. The turnaround time from order to installation may be extended due to a number of reasons. There may be a perception of a lower priority because the origin of the order was internally driven. The advisor may not have been involved with the order and be unfamiliar with the need for the customer’s concern. The advisor may also delay contacting the customer until his schedule is less busy assuming that the expectations of the customer are less urgent because he accepted delivery without the part.

From a complete Service Department Assessment to targeted Classroom Service Advisor Training options, I am here to assist you with all of your Fixed Operation improvement custom-tailored to your specific needs. For more information feel free to contact me anytime at (205) 329-3735 or daviddietrich@m5ms.com.

Continued next week in Part 5!

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It is an indisputable fact that everything that happens within the walls of the Service Department is tracked and controlled by the repair order. Most personnel in the department are paid directly or indirectly by what happens on the repair order. The repair order is so crucial that what happens in the shop can be completely different than what is represented on the repair order. However, when that repair order is closed and the charges are posted to accounting, there is a very good chance, right or wrong, the result will show on the financial statement. With this in mind, it is important to know, as accurately as possible, when and how the facts and figures become what they are.

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