Peugeot has rolled out a new parts distribution programme which it expects to improve its dealers’ aftersales efficiency.
It comes after a trial at the manufacturer-owned Peugeot Citroen Retail Group led to the removal of parts operations at its dealerships, with a subsequent reduction in headcount and other costs such as parts vans.
Since April Peugeot UK has introduced 30 regional parts hubs which supply franchised dealerships and independents in their area. Prior to this, the carmaker had been delivering parts once daily to each of its 200 individual dealerships, like many manufacturers.
However managing director David Peel said this was never the most cost-effective distribution platform, plus on occasions where a part was unexpectedly needed to finish a car within the day some dealers would resort to using local motor factors.
Now the hubs are delivering parts to dealers up to three times daily.
“Now the average dealer has less than £10,000 of parts in stock, they have no obsolescence, their parts sales will increase and they can provide better customer satisfaction, while the hubs provide that scale so the dealers can reduce their costs,” he said.
Peugeot no longer sets dealers a parts target, he added, but the regional hubs will have a target and incentive scheme for the dealers in their region.
During the pilot at Peugeot Citroen Retail Group, the programme connected the parts hubs to dealerships’ DMS, so they could pre-pick service parts and receive electronic vehicle health check demands direct, and parts were bagged and tagged specifically to each job booking before being dropped at the dealership for the technician to use.
Peel believes this would not be as simple for the franchisees operating hubs, as they will be serving dealers and independents with a variety of dealer management systems.