Hyundai is to introduce a new inventory management system for its US dealers, which is expected to increase same-day service repairs and enhance inventory efficiency.
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The Supply Modeling and Retail Tracking collaborative dealer inventory management programme, known as SmartStock, has increased parts sales by 19% and inventory turns by 25% in a pilot programme, Hyundai claims. The company’s goal is to increase same-day service repairs, a key component of overall customer service.
Between 30 and 40 dealerships will be upgraded to the SmartStock system in November, with all dealers having access by the end of 2003.
While individual dealers understand local market trends and seasonal demands, SmartStock takes a collaborative approach to inventory management, using data generated by Hyundai’s network of almost 600 dealers to optimise stocking at the individual market level.
“The bottom line is that we provide the information and tools that the dealer needs to make informed stocking decisions,” said Hyundai director of supply chain and logistics George Kurth.
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By GlobalData“Guesswork is virtually eliminated because the dealer knows the importance of each part and the system will automatically recommend whether that part should be stocked or not.”
The key differentiator is that Hyundai is forecasting demand up to six months into the future rather than relying on historical average demand, enabling dealers to get ahead of trends and seasonality. Once a dealer is operational, Hyundai guarantees that it will buy back all inventory that does not sell on a quarterly basis provided the dealer ordered the parts in accordance with programme guidelines.
The SmartStock system is compatible with ADP, Reynolds or UCS computer systems and Hyundai dealers with parts managers trained on these systems will be first to upgrade to SmartStock. The company is targeting upgrades to one market per region per month through 2003.
