Chris
Veteran Member
- Joined
- Jan 27, 2000
- Location
- Bloomfield Hills, Michigan, USA
Hi folks:
This was in this week's Automotive News (www.automotivenews.com)
VW, Audi dealers run shy of parts
February 21, 2000
A new computer system at a massive, high-tech parts warehouse in Kassel, Germany, was designed to speed parts to Volkswagen and Audi dealers around the world.
Instead, software glitches caused parts arriving from suppliers to pile up. Since September, customers in the United States have had to wait for days, sometimes weeks, for parts.
Volkswagen of America Inc. acknowledged the problem and said dealers should see some relief in the next few months.
The shortage has been compounded by robust sales in North America. Some Volkswagen and Audi suppliers have not been able to keep up with the demand for replacement parts.
The difficulty in obtaining parts has become the No. 1 concern among dealers, said Jerry Miller, an Audi dealer in Conshohocken, Pa., in suburban Philadelphia, and past chairman of the Audi National Dealer Council.
Indeed, dealers are taking the brunt of the heat from angry customers.
"What are you going to do? The part's not here," said dealer Bob Kissick, at Boardwalk Auto Center in Redwood City, Calif.
SOFTWARE PROBLEM
The problem surfaced in September, when Volkswagen launched a new operating system in its huge Kassel parts warehouse, said Eric Johnston, executive director of service and parts at Volkswagen of America. The operating system is based on software from SAP AG, the software giant of Walldorf, Germany. Volkswagen enhanced and modified the program, Johnston said.
The new system eventually will make the central warehouse more efficient in receiving, processing and managing inventory, Johnston said.
A bottleneck was created at the point where suppliers deliver parts to the warehouse.
"Stuff was literally not getting brought into inventory when it was in fact there," Johnston said.
A team of specialists from Volkswagen's information technology division was dispatched to Kassel from world headquarters in Wolfsburg.
STRONG U.S. SALES
The volume of back orders in January, compared with December, has gone down about 30 percent, he said.
Volkswagen's rapid growth in North America also has contributed to the parts shortage, he said. Volkswagen of America orders parts from Kassel based on sales forecasts.
Volkswagen initially projected U.S. sales of 295,000 during 1999. But it sold 315,563 Volkswagens last year, up 43.6 percent from 1998. It was the first time in 25 years that VW sales have topped 300,000. Including Audi, which was up 38.8 percent last year, the group's U.S. sales totaled 381,522.
HELP LINE
Volkswagen acted quickly by assigning special "expeditors" to various dealerships to help them find critical parts, said dealer Bob Lewis, of Bob Lewis Volkswagen in San Jose, Calif. His dealership carries $600,000 worth of Volkswagen parts.
Ten expeditors operated a hotline established in early January, Johnston said.
Dealers are giving customers free loaner cars when they must wait on delivery of a part, and their car is inoperable, Johnston said. Dealers also can request a "gift amenity" and a letter from Volkswagen of America addressed to the customer apologizing for the delay and clarifying why it has occurred, he said.
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This was in this week's Automotive News (www.automotivenews.com)
VW, Audi dealers run shy of parts
February 21, 2000
A new computer system at a massive, high-tech parts warehouse in Kassel, Germany, was designed to speed parts to Volkswagen and Audi dealers around the world.
Instead, software glitches caused parts arriving from suppliers to pile up. Since September, customers in the United States have had to wait for days, sometimes weeks, for parts.
Volkswagen of America Inc. acknowledged the problem and said dealers should see some relief in the next few months.
The shortage has been compounded by robust sales in North America. Some Volkswagen and Audi suppliers have not been able to keep up with the demand for replacement parts.
The difficulty in obtaining parts has become the No. 1 concern among dealers, said Jerry Miller, an Audi dealer in Conshohocken, Pa., in suburban Philadelphia, and past chairman of the Audi National Dealer Council.
Indeed, dealers are taking the brunt of the heat from angry customers.
"What are you going to do? The part's not here," said dealer Bob Kissick, at Boardwalk Auto Center in Redwood City, Calif.
SOFTWARE PROBLEM
The problem surfaced in September, when Volkswagen launched a new operating system in its huge Kassel parts warehouse, said Eric Johnston, executive director of service and parts at Volkswagen of America. The operating system is based on software from SAP AG, the software giant of Walldorf, Germany. Volkswagen enhanced and modified the program, Johnston said.
The new system eventually will make the central warehouse more efficient in receiving, processing and managing inventory, Johnston said.
A bottleneck was created at the point where suppliers deliver parts to the warehouse.
"Stuff was literally not getting brought into inventory when it was in fact there," Johnston said.
A team of specialists from Volkswagen's information technology division was dispatched to Kassel from world headquarters in Wolfsburg.
STRONG U.S. SALES
The volume of back orders in January, compared with December, has gone down about 30 percent, he said.
Volkswagen's rapid growth in North America also has contributed to the parts shortage, he said. Volkswagen of America orders parts from Kassel based on sales forecasts.
Volkswagen initially projected U.S. sales of 295,000 during 1999. But it sold 315,563 Volkswagens last year, up 43.6 percent from 1998. It was the first time in 25 years that VW sales have topped 300,000. Including Audi, which was up 38.8 percent last year, the group's U.S. sales totaled 381,522.
HELP LINE
Volkswagen acted quickly by assigning special "expeditors" to various dealerships to help them find critical parts, said dealer Bob Lewis, of Bob Lewis Volkswagen in San Jose, Calif. His dealership carries $600,000 worth of Volkswagen parts.
Ten expeditors operated a hotline established in early January, Johnston said.
Dealers are giving customers free loaner cars when they must wait on delivery of a part, and their car is inoperable, Johnston said. Dealers also can request a "gift amenity" and a letter from Volkswagen of America addressed to the customer apologizing for the delay and clarifying why it has occurred, he said.
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