3 Ways to Improve Your Service Parts Supply Chain

Disruption has marred logistics across all industry verticals since 2020, and while much of the world seems headed toward recovery, there’s an additional risk at play. The chip shortage, which first dominated headlines in early 2021, is now leading to unexpected changes in the service parts supply chain.

Automakers are rethinking their overall production schedules, and as reported by Business Insider, Ford stopped production of the F-150 Lightning in February 2023. Meanwhile, auto prices are up across the board, and traditional repairs relying on OEM and aftermarket spare parts are delayed. Together, it feels like the perfect storm for a flailing service parts supply chain, but there are three things that today’s automakers and service providers can do to overcome this and future disruptions. 

1. Prioritize the Customer Experience

Take a moment to think about the last time that you had a problem and needed a repair on your vehicle. You were frustrated, angry, and worried, but imagine how those emotions would feel if you had to wait six weeks or more to get back on the road. It’s a true nightmare, and automotive service providers are responsible for putting your mind at ease. In other words, they need to prioritize the customer experience, providing complete transparency into the estimated time to complete the repair and any changes along the way. 

While this may seem like a minor improvement to the actual process of completing repairs, it also means recognizing that service providers must take on the role of teacher and counselor, explaining more thoroughly what to expect and when. But of course, there are a few other things can help reduce the stress of limited, stretched service parts supply chains. 

2. Reduce Lead Times With Advanced Analytics

No one could have predicted the long-lasting impacts of the semiconductor shortage. Still, automotive service providers who understand their supply chains can better roll with the punches. One particular way involves leveraging advanced analytics to understand lead times and better manage inventory. In other words, these individual companies can reorder product earlier based on the data trends for needed repairs, and that has a natural implication for supplier and transportation procurement too.

3. Leverage Strategic Partners

The third best practice for improving the service parts supply chain feels obvious, but all too often, companies forgo partnerships due to irrational fears, such as the following:

• • What happens if this company takes my idea? 

• • Will my competitors find these additional resources too?

• • What else can I do to avoid potential issues with my inventory?

Sadly, most competitors are likely well aware of your strategy. They may not know your exact financials, but your secret sauce might be better kept than you believe, reiterated by Marcus Sheridan in his book, “They Ask, You Answer.” Moreover, your competitors are likely leveraging the same strategic processes to reduce stockouts and keep more vehicles on the road. So, what do you truly fear?

The answer is change, and much like changing the oil in a passenger car every 3,000 miles, it’s actually a good thing. By strategically planning your supplier network and stocking locations around the globe, you can source additional parts even when certain areas enter lockdowns or bottlenecks. This provides a protective effect against the risks of future delays and can actually help with reducing your total transportation and logistics costs too. 

Streamline Service Parts Supply Chain Processes With [Company]

The service parts supply chain forms an integral part of modern civilization. Without quality service parts and speedy fulfillment, everyday activities can fall by the wayside, and in automotive logistics, this is a major problem. However, the service parts supply chain can leverage customer-centric processes, advanced technology, and strategic partnerships to reduce the impact of disruptions. That will keep more cars on the road, and it’ll further avoid additional downstream impacts.

Think about it. If people can’t get back on the road in a reasonable timeframe, how will that impact other people, other supply chains, and other expectations for all supply chains? It’s complex, and fortunately, you can hit the easy button by doing all the above with [our company]. Connect with our team to learn more about how you can breathe new life into your service parts supply chain today.