M5 Management Services, Inc. Newsletter .
    (205) 358-8717

Issue: 06/21/2023

   

Special Order Parts Return Process Options - Part 1
by: David Dietrich

This is Part 1 in a five-part article.

I. Introduction

Situations involving special order parts can be very frustrating for both dealership employees and customers. 

The words “special order parts” bring to mind a number of things for dealership employees, according to their job and the department they work in.

  • A Service Advisor will have to be the bearer of bad news to the customer.
  • The vehicle will have to be held over.
  • The customer will have to come back.
  • The Technician will lose time.
  • The Parts Department will have to place an order and wonder if the part will really be used.
  • The Service Manager and Dealer think of the customer’s response to a fixed first-visit question on a CSI survey.

The dealership employees aren’t the only ones who have thoughts on special order parts.  The customer may roll thoughts over in their mind as well.  And sometimes it’s because of what’s happened before.

  • “How long is it going to take this time to get my car back?”
  • “Will they really call me, or will I have to call them and be placed on hold for a long time, just like the last time?”
  • “When in the world am I going to be able to get in and get my car fixed?”

As frustrating as the question is, as frustrating as this is for all of us, are there some ways we can minimize the interdepartmental confusion and serve our customers better?

There are “ways” as opposed to a single “way” to handle special order parts. 

Within the pages of this document, there are strategies designed to help you employ tactical ways of handling special order parts. There is not just “a way” to handle special orders.  There are “ways.”  The “ways” covered have been used by various dealerships.  The intent is to help you establish “ways” that will work for you.  The types of orders in this document are:

  1. Service Department Special Orders
  2. Internal Special Orders

We will examine ways to improve communications between parts employees, service advisors, technicians, and customers.

It’s always better to have a strategic way of approaching a complex issue versus shooting from the hip.  With that thought in mind, there are various considerations for developing a service department special order parts system.

II. Considerations for Developing Special Order Parts System

A major part of the frustration associated with special order parts for the Service Department stems from multiple priorities and a lack of communication.  There are questions to be answered:

  • Is the vehicle drivable?
  • Is the part or parts in question safety or convenience related?  For example, is it summer and do we need air conditioner parts, or, is it winter and do we need a heater part?  Do we have a brake problem, or is it a carpet that doesn’t fit just right?
  • How badly does the customer need to have the vehicle returned?  Take this to heart—do we really know how difficult it is for the customer to give up their vehicle for a day or longer?
  • What kind of commitment has the Service Advisor made to the customer?  How must the part need to be ordered to meet the needs of the customer and the commitment made by the Service Advisor?

Parts are sometimes ordered without communication between the Parts Department and Service Advisor.  This can cause problems for the Service Advisor and result in losses for the Parts Department in the form of obsolescence credit, stock order allowance/discount, and unnecessary freight charges.

The customer often feels no obligation to return for installation either because the part is a nonessential item or there is no urgency to do so.  The need to address this has been a topic of discussion for many years.  On customer-pay special orders, consideration should be given to charging the part or a portion of it to the customer at the time of ordering.  Parts cannot order without documentation of payment.  Warranty special orders have even less urgency to the customer.  Many agencies believe that providing a loaner car until installation is completed is the answer.  Deposits on warranty parts are also a means of ensuring a return by the customer.  Another option is the removal of items not essential to the vehicle's operation such as trim during the initial service visit.

A system is needed that addresses the needs of the customer, the Service Department, and the Parts Department.  Again, there are “ways” versus “the way.”  To get the best results, the management staff of the Parts and Service Departments should work together to implement a policy for the employees to follow.

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 2!

Jacob Tyler Testimonial

Jacob Tyler, Shop Foreman at Austin Subaru, is excited to keep rolling and keep making improvements with the help from M5!

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