As we wind down these last few months of 2024, I wanted to bring in a topic that is a little bit out of our normal sequence of ACG "Smart Parts" Newsletters. The idea of this month's topic came to me because many dealers have been coming to me and "wanting" Fixed Ops Training, but what they really want is the "Right" Fixed Ops Training.
That being said, there are lots and lots of opportunities out there for dealers to find the right Fixed Operations Training Companies that will suit their individual needs. To each their own as they say, but one common theme that I noticed when they approach me is that they wanted something different.
I thought about this for a bit, and I then realized what, in my opinion has been missing is that dealers are reaching out for what they believe they need is more Service Drive Training to increase their overall Service Absorption.
It's not unusual that this Fixed Ops Training would start out in the Service Drive as that is primarily the "point of purchase" Sales Opportunity, so why not start there? The customer pulls in the Service Drive and who is greeting them first but the Service Advisor.
This is where, in my opinion the opportunities begin, but it's also where the "break in the chain" also begins in the area of over promising and under delivering. No matter what kind of training is out there, or how well it's delivered, if we can't deliver the "Customer Promise", all training goes by the wayside.
Which brings us to the next challenge of having the right processes and the right resources to deliver the "Customer Promise". This is where having properly trained Service Advisors and Skilled Technicians come to the forefront.
But!....What's the Missing Link!
If you were to look up the definition of "Productivity", which is the engine to how our Service Department operates, the revelation becomes even more realistic when you factor in the importance of the Parts Department, especially when we are talking about Service Drive Training.
The definition of "Productivity" is simply this...
"Productivity Equals Output Divided by its Resources"
That being said, (again), what are the resources in this equation as far as the Fixed Operations referring to?...
You guessed it!....Parts!
We can't perform over 85% of our Service Department Repairs or Services without having parts to complete the repairs. So now, we are starting to get the picture of success of Service Drive Training and the initial overall requirements in the training process.
I don't care how good or how successful any Service Drive Training Process or Company is, without the Parts Department operating on peak levels with "First Time Fill Rates" at or above 75%, the investment spent on this training will not achieve expected results in both departments.
So!...How Does the Parts Department Impact the Service Drive Training Process?
Let's break it down and prove the obvious...
Parts "First Time Fill Rates":
Not to be confused with "Overall Parts Fill Rate", which is basically the sale of a part, no matter if we had the part or not, or where and when we get the part to fill the order. Overall Fill Rate does not mean we filled that demand on first attempt. It just means we filled the order and not necessarily on the first attempt.
The average Parts Department's "First Time Fill Rate", which means the parts demand was met on the first attempt is less than 50%, where the industry guideline is 75% - 85%. So, when we start talking about an effective Service Drive Training Process, all could be good except at the "point of purchase", all goes downhill because we don't have the part.
Think of it this way, you are looking to buy a brand-new lawnmower, refrigerator or stove and the salesperson shows you a picture, or perhaps a floor model and his or her training convinces you to buy, but then...he or she says we don't have it, resulting in great training, but no eventual sale.
Posting Lost Sales:
If you think that not posting Lost Sales may have an impact on Service Drive Training, you are missing a huge component to a Successful Service Drive Process. Posting Lost Sales is really defined as "posting customer demands", which are Sales and Lost Sales.
In other words, if we don't track what our customers are asking for, no Sales Training will end up in a sale without the availability of eventual desired product or service. In other words, if we don't have it, they will go somewhere else to get it.
On the other hand, even if we do post those Lost Sales, it won't really matter if we don't have the proper Set Ups & Controls in our DMS, which translates down to our Manufacturers Vendor Managed Inventory Stock Replenishment Programs, (VMI) if offered by the Manufacturer.
Proper Set Ups & Controls:
Speaking of which, if our "math" is not set up properly on our DMS, we are most likely not going to have that part 75% - 85% of the time and no Service Advisor or Service Drive Training Process, no matter who or what company it is will be able to wave a magic wand and make that part appear to close that sale.
Let's look at the other side of things if we do have a Parts Department that meets all the requirements and achieves all these industry guidelines. Just imagine for a moment if you have a Parts Department that has a "First Time Off Shelf Fill Rate" of 75% - 85%.
First:
Service Advisor confidence goes up because the part is in stock, and the Advisor can then go to closing techniques with fewer customer objections.
Second:
It is a fact that having the parts in stock, much like having the right vehicle on the lot increases closing ratios immensely.
Third:
Having the right part at the right time also promotes a higher "point of purchase" environment for both the salesperson and the customer.
Service Scheduling & Appointment System:
Believe it or not, having a high Parts "First Time Fill Rate" does impact Service Drive Training and the Service Drive Process by impacting and increasing Service "Cycle Times" and the overall availability of appointment slots.
Having a more efficient Parts Department enables the Service Department to process more customers through the Service Department. It can also impact the number of overall available Service Appointments including "Drop Off" and "Waiter" customers.
In Conclusion:
Getting back to the Service Drive Training aspect of things and what really works is proven quite obvious. Parts has to come first as far as Training along with the Proper DMS Set Ups & Controls. In my opinion, Parts Training, Proper Set Ups & Controls have to be in place at least two or three months prior to any Service Drive Training Process.
The reason I believe two or three months is needed is because sales history with the Proper Set Ups & Controls have to go through at least one "Part Cycle" of three months. This cycle allows the system to Phase-In more demands and to set proper Stocking Levels and the data acquired from Lost Sales Posting leads to more inventory breadth as more and more parts phase into the DMS.
Putting the "cart before the horse" in this case just makes sense, but the problem is that Parts Training is scarce, especially if you don't know how to get these Set Ups & Controls implemented properly into the DMS. This is why at ACG "Smart Parts", we speak 14 different languages of Dealer Management Systems.
There are many out there that can tell you what needs to be done but can't actually get the job done because their knowledge of various systems is lacking. In addition, and unfortunately, many of the people employed by these various systems don't even know themselves what their system is capable of and don't know the basic math as I have personally witnessed.
Having the Proper Set Ups & Controls is just simply that as it's all about the math. It's irrefutable as there are no opinions when it comes down to the math and how these systems and algorithms work.
In my opinion, no matter what Fixed Ops Training Program the dealer chooses, success will only follow if the Parts Department is ready and running efficiently and having the right part at the right time. If the Parts Department is not ready, then it's pretty obvious that the investment spent on Service Drive Training is likely to lead to less than desirable results.
If you want to learn more about ACG Smart Parts "Eight Habits of Highly Successful Parts Managers", visit our website @ www.smartpartstraining.com, or...just pick up the phone and call me at :
(786) 521 - 1720...After all, not knowing is not worth not "fixing" it...
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