A Customer Service Excellence Program assisted DC Motors to identify opportunities to reduce and optimise inventory holdings, and improve four specific customer service processes.
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Well variety is what you get when you deal with DC Motors who operate a multi franchise dealership in Rockhampton which includes Chrysler, Dodge, Jeep, Honda, Hyundai, Mercedes-Benz, Nissan and Subaru. However, with variety comes complexity, as significant attention is required to ensure that adequate car stock, parts and accessories are available per franchise, when the customer needs it. Adding to this complexity are the various internal and external customer types, each with their own unique and demanding requirements. And to make life really interesting, DC Motors’ plan to double the size of their maintenance workshop facilities which will add a whole new dimension to increasing their capacity to serve Central Queensland.
Determined to ensure DC Motors is ready for the expansion, Dealer Principal Steve McCosker first needed to ensure they were doing everything possible to meet their current increasing customer demand, before demand doubles.
“We engaged LSC Solutions to find out how much inventory we should be holding and how could we improve parts availability and turnover. We also needed to address some operational challenges which were impeding our ability to improve customer service.” – Steve McCosker, Dealer Principal
The Customer Service Excellence Program entailed analysing the inventory data and reviewing four customer service types including (1) Parts to Workshop – Services, Repairs & Warranty, (2) Parts to Internal – Pre-Delivery, (3) Parts to Trade – Panel & Mechanical and (4) Parts to Workshop – Used Car Recondition. These processes were mapped and critiqued to identify issues within each of the processes impacting on customer service. Internal and external customer satisfaction surveys were conducted and a benchmarking survey was also conducted with other ‘best practice’ dealerships.
The inventory analysis exercise provided DC Motors with strategies to reduce inventory by 40% and to increase turnover by 40%; it also revealed that only 14% of the parts records require stock on hand due to the large number of one-off parts requirements.
“During LSC Solutions inventory presentation of the analysis results, I learnt more about my inventory during that ½ hour presentation, then I had in the past 12 months.” – Steve McCosker, Dealer Principal
DC Motors’ pride itself in being able to offer a one stop automotive shop during their 50 years in operation. In addition to new cars, DC Motors also boasts an impressive range of used cars, to together with a Parts Department, Service Department, Finance and Insurance Department, and an extensive range of Car Care products.
“The review of the customer service processes was quite comprehensive and allowed us to identify simple solutions to address the process issues that were preventing us from achieving excellence in customer service. The solutions gave us an excellent insight into how to address our operational challenges which will result in increased revenue and profit, as we continue to implement their recommendations. We are now in a much better position to cope with any increase in demand that the workshop expansion will attract.” – Steve McCosker, Dealer Principal
DC Motors is located at the corner of Derby and Campbell Streets Rockhampton. Steve McCosker, Dealer Principal or his team may be contacted by phone on 07 4999 1200. www.dcmotors.com.au