Brian Sprat, chief executive of the Automotive Distribution Federation, considers some points about the supply of replacement truck parts...
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ddbusinesses are well known and, of course, important. Hauliers' concerns about the costs inherent to thew Why then do those same hauliers fall into the trap of misusing the local parts suppliers—the factors?
lack of price consistency in the logistical chain dedicated
shown by his parts suppliers, the local franchised dealer and his local factor competition.
Having rung the dealer and been shocked by the price quoted for the component, the haulier contacts his parts factor who quoted his, happily lower, price. Now the average consumer would accept the lower price and run. However, in this case, the haulier rings back the dealer and reveals the uncompetitiveness of the dealer's price. Whereupon, surprise, surprise, the dealer matches the factor's price.
But what has been achieved? The haulier has got the component at the cheapest price, hasn't he? Well, no, actually; because just in the action of ringing the dealer for the second time the haulier has incurred additional costs of his time, his admin systems and the price of the call. They all add up.
"Well I'd rather have the part from the dealer because it's going to be the original one," claims the haulier. Is this true? Can you decide which is an original part and which isn't? Is a clutch fitted in any of today's trucks made by the company whose logo appears on the front panel? What about shock absorbers, radiators, filters, lights, brakes, both activators and friction materials, fuel pumps, injectors and glow plugs?
The companies that make the parts fitted to today's vehicles supply the same parts as replacements through the independent aftermarket. Your local parts factor is just one link in the logistical chain dedicated to supplying the right part, when it's needed, at a competitive price.
Of course, the competitive price is not always the cheapest, because having stock and being able to deliver at the right time is also worth something. But hauliers should think a little about the long-term effect of misusing their local motor factor. After all, if he weren't there to provide this competitive element, would the dealer even think about matching prices? The dealer certainly can't match the breadth of stock and industry-wide knowledge necessary to know what part fits what vehicle out of any in a sizeable mixed fleet.
I'm reminded of the man who complained to his local ironmonger that screws were half the price down the road. "Why don't you buy them there then?' asked the ironmonger.
"They haven't got any in stock," replies the bellyaching customer.
More seriously, imagine the high prices and low service levels you would get if the dedicated motor factor wasn't around.