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New Volvo supply concept cuts parts stock

Volvo is rolling out a new logistics and distribution programme, starting in south-east England.

The Local Distribution Concept replaces the single central supply centre with three hub sites and up to 10 micro sites that will hold parts stock and deliver to dealers three times a day.

It will cut dealers’ parts stock holdings from more than £100,000 down to £10,000 and help speed up repairs.

“Dealers will need to become more focused on parts pre-planning when cars are booked in so they have the parts in good time,” says Volvo UK sales director Nick Connor.

One Volvo retailer that has been part of the pilot programme says there have been some teething problems, but he is confident Volvo has the right idea.

Peter Barnes, owner of Lipscomb group in Kent, has three Volvo dealerships. “We had some issues with first-time picks, but Volvo is getting it right,” he says.

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