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Letter to the Editor
Thursday June 21
American Honda Announces Daily Parts Delivery
American Honda Motor Company, Inc. has launched its Daily Stock Order (DSO) system, providing Honda and Acura dealers with daily parts delivery. The enhanced service level to dealers is designed to provide superior parts availability across the spectrum of parts consumers including collision repairers and independent mechanical repair shops.Honda’s Troy, Ohio Parts Center (PC) was the first to launch DSO on November 6, 2006. Subsequent PCs launched the new system averaging about one PC per month. The last three will be Mount Laurel, N.J. launching later in June, followed by Windsor Locks, Conn. in July, and Alpharetta, Ga. in August.
Prior to the roll-out of DSO, dealers typically placed Scheduled Stock Orders on a weekly basis, supplemented with Daily and Urgent parts orders, the latter two incurring freight charges borne by the dealer. Under the new system, dealers can order parts on a daily basis at no additional cost. Depending on a dealer’s proximity to its PC, the majority of dealers can order parts as late as 3p.m. and receive them by 7a.m. the following day at no additional cost to the dealer. American Honda calculates that 88 percent of dealers will receive their parts order by 7a.m., while up to 95 percent of dealers will receive their order by 9a.m.
As the DSO program is rolled out, dealership parts managers are being trained by American Honda on how to best take advantage of a new parts stocking strategy: reducing inventory depth while increasing breadth to optimize parts availability resulting in higher customer satisfaction for all parts-consuming market sectors.
The new system will inherently provide a better array of parts in stock at the dealer level and will better facilitate the acquisition of those odd or finish parts sometimes needed on collision repair supplements or on a vehicle-down situation for mechanical repairs.
The launch of the new system has been pending for over five years as Honda made internal infrastructure and logistics enhancements, including a $25 million upgrade to its warehouse management system enabling more efficient processing of parts orders. The result is a system-wide parts fill-rate of 98.5 percent.
The DSO roll-out will be completed by summer’s end, encompassing every PC serving all Honda and Acura dealers across the country.
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