By Emily Saving, Executive Director, National Marine Distributors Association (NMDA), an MRAA Education Champion
Where the Day Actually Goes
When dealers talk about what’s holding back their service department, the conversation almost always lands on technicians. There aren’t enough of them and the good ones are hard to keep. I’m not going to argue with that.
But think back to the busiest week of last spring and remember what your techs were doing when they weren’t working on a boat. Somebody was standing at the parts counter. Somebody was on hold with a supplier. A boat was sitting half apart on the rack, waiting on a water pump kit that was two days out, while the customer called to ask when it would be ready.
Those hours are hard to see because nothing looks wrong on paper. The tech was on the clock, the repair order got closed and the customer eventually picked up the boat. You paid for the time and never billed it.
I think this is a bigger drag on service profit than most dealers give it credit for. And unlike the labor market, it’s something you can work on this winter.
More Inventory Won’t Fix It
The natural reaction is to stock more. You ran out of impellers in June, so this year you order twice as many. I understand the logic, but I think it’s a mistake, especially at this time of year.
Every part on your shelf is money you’ve already spent and winter is when most dealers have the least of it to spare. If those parts don’t move until April or May, that’s months of cash sitting in a bin.
And you’ll still get caught short. Think about how many different engines, model years and accessories came through your shop last season. No dealer can stock for all of it and last year’s shortages are a poor guide to next year’s. You’ll have plenty of what you needed last June and be missing the thing you need this June.
A bigger parts room doesn’t solve the problem. What solves it is getting the part to the tech without anyone losing half a day over it.
Lean on Your Distributor
I should be upfront here. I run the association for marine distributors, so I’m not a neutral party. I still think this is the part of the business dealers underuse the most.
A distributor’s whole business is carrying a wide range of product from a lot of manufacturers and getting it to dealers fast. That’s inventory you don’t have to buy and shelf space you don’t have to find. In practice, though, a lot of dealers only pick up the phone when they’re already out of something and a boat is waiting.
The dealers who get the most out of the relationship treat their distributor more like a colleague than a vendor. They talk to their rep about what’s coming through the shop and what they keep running short on. They ask what’s selling in their area. They keep the fast-moving parts on their own shelves and count on the distributor for the rest.
Getting there takes some planning and there’s no time for planning once the season starts. That’s why I’d do it now.
A Few Things Worth Doing This Winter
- Go back through last season’s repair orders and special orders and write down every part that held up a job. If your system doesn’t make that easy, ask your techs and whoever runs the parts counter. They’ll remember the ones that hurt.
- Look at what you stock and be honest about what has to be on the shelf when a boat comes in and what you could wait a day for. My guess is the must-have list is shorter than you think.
- Call your distributor rep and go over both lists together. Ask about delivery days and order cutoff times, what preseason programs they offer and how returns work. It’s also worth asking what other service departments in your area tend to run short on.
- Pick one number to watch next season. Jobs delayed for parts each week would do it. It doesn’t have to be fancy. You just need some way to know whether things are getting better.
Before the Phones Start Ringing
By April, you’ll be working with whatever crew you have and there won’t be much you can do about it. How much of their time gets billed is still up to you and a lot of that comes down to whether the parts are there when they need them.
None of this is complicated or expensive. It’s an afternoon with last year’s repair orders and a phone call to your rep. I’d make that call before the holidays.
About the Author
Emily Saving is Executive Director of the National Marine Distributors Association (NMDA), the trade association for wholesale distributors of marine accessories and aftermarket parts and the manufacturers that supply them. Learn more at nmdaonline.com.
