Fixed Ops Magazine - 2022 Vol19 04 - 54

money selling parts. Yet, that goal is not accomplished
by spending money and manpower grinding through
driver and delivery problems. It is achieved by (1) growing
business from existing customers, (2) systematically
building a pipeline of new customers, and (3) actively
finding niche opportunities in geographic areas poorly
serviced by the competition.
WHAT'S A MANAGER TO DO?
This is where outsourcing parts delivery can shine for
your wholesale operation. A strategic delivery partner
can relieve your parts department of the daily
distraction of absent dealer-employed drivers, while
simultaneously reducing your total delivery cost as
well. Engaging a suitable delivery partner to augment
or entirely replace your vehicle fleet and drivers will
also energize and motivate your parts staff by focusing
their activities on more actionable and productive
sales functions. Outsourcing keeps the wholesale
parts staff in the warehouse and office, and aligns their
activities with the three points above. Incorporating a
third-party local delivery company lets the dealership
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focus on growing their business rather than growing
their operational expenses.
KNOWING THEIR OPTIONS
Outsourced delivery companies either deploy a company
owned vehicle and company-employed W2 driver,
or they may deploy an independent contractor, who
is a 1099 owner-operator of their own vehicle. While
there are advantages to both set-ups, one distinction
makes all the difference in the world. The outsourced
company owning the vehicles and employing the W2
drivers has the same problem that the dealerships
have regarding driver recruitment and retention. Their
drivers also signed up for the Great American Resignation,
leaving their company vans idle as well. Outsourced
company-employed delivery personnel may
also be reluctant to integrate fully with dealer staff,
their customers, and any internal dealer mandated
work procedures, since their first allegiance is to their
own employer and any set company protocols that
may exist.

Fixed Ops Magazine - 2022 Vol19 04

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