PA RTS PARTS ORDER DELIVERY OPTIONS Many Short And Long-Term Benefits Are Delivered With The Parts Inventory O n-demand fleets for local parts deliveries will of parts from dealers. The report issued in mid-2020 likely be the most impactful innovation of the explored why only 20% of IRF parts purchases were 2020s for dealer parts. Rolling it out may filled by dealers. The biggest factors were price and not be swift, smooth, or simple - but it promises to be availability. Delivery times and order processes fol- transformative. lowed. On-demand delivery options can improve delivery times, availability (selling dealers could have On-demand fleets help Dealer Parts Departments by parts picked up from other dealers as needed) and leveraging technology-enabled services you are famil- ordering processes. These were three of the top four iar with - ride-sharing services. These fleets emerged factors that limited dealer parts sales. to disrupt personal local travel - displacing taxis with smartphone apps. This was followed by delivery of On-demand fleets 'deliver in an hour' largely elimi- restaurant meals and groceries. Dealers started us- nates dealers' delivery time deficit (compared to af- ing ride-sharing fleets to transport service and vehi- termarket parts suppliers). Even before the study, ve- cle sales customers. Now, these fleets are delivering hicle OEMs and DSPs (Dealer Systems Providers) were parts to retail and wholesale customers - quickly and running pilots in which immediate delivery (at no extra cost-effectively. Initial use has been for hotshot deliv- cost) would win dealers additional parts orders. eries - a limited slice of parts orders. With emerging advances, use will grow and grow for years. WORKFLOW & FUNCTIONALITY OPPORTUNITY When IRFs order parts that must be delivered soon- Carlisle & Company and MOTOR Information Systems at the dealer can drop everything to drive the part to studied Independent Repair Facility (IRF) purchases the IRF), how should a Dealer respond? Rather than 50 er than the dealer's delivery route allows (and no one