Truck Parts and Service | Heavy Duty Trucking, Aftermarket, Service Info
Issue link: http://read.dmtmag.com/i/438149
22 The fi rst step in installing an order fulfi llment strategy is creating different operating procedures for each possible order type. Most heavy-duty aftermarket orders can be divided into two categories: Rush orders and stock orders. The former applies to unit-down emergencies; the latter is catch-all to describe all other orders — but typi- cally refers to a once or twice a week order placed by a customer to replenish its parts inventory. (A third category of non-rush, but slightly expedited orders also can occasionally be found in the aftermarket.) While the picking, packaging and delivery of each order type is typically the same, stock orders allow distributors much more leeway in delivery time. A rush order requires a sense of urgency. "Fulfi lling customer orders is the most critical point of this entire [industry]," says Brandon Ford, director of sales and marketing for Power Train Companies. "We ask every customer when they want their order delivered, and when they say it's a rush order we know that means immediately." Rick Fulks, director of operations, aftermarket, North America at Meritor, says his company's parts distribution center in Florence, Ky., immediately sep- arates all orders into unit down (rush) or stock orders when received. Fulks says rush orders are given priority over stock orders because of their timeliness, and adds that during high-volume periods pickers are taught to fulfi ll any open rush orders before beginning stock orders. Stock orders, consequently, are sorted and picked by their required delivery date. A similar protocol is in place at Dor- man's four distribution centers, says Clinton Shultz, senior vice president of distribution. "We split out our orders based on their due dates," he says. "For a priority order, if [a customer] gets it to us by 7 p.m. we will pick it and ship it that day. For normal restock orders, we will pick it and ship it within 48 hours." But streamlining parts fulfi llment takes more than order categorization. How employees pick and package orders also has a profound impact on the speed and accuracy of a distributor's performance. For both the OE supplier and after- market distributor, there's value in build- ing procedures for how components are picked from warehouse shelves. One common method on the supplier side is assigning pickers to dedicated product areas. Under this system, a warehouse employee is notifi ed of every order that requires a component within his desig- nated area. The employee then spends his day picking the necessary parts for each order and delivering them to the packag- ing area. This is common in large warehouses as a way to maximize productivity. One employee tasked with covering a fi nite space spends less time searching for parts, or in transit delivering parts, than an employee tasked with covering an entire facility. Fulks says Meritor uses this through- out its Kentucky facility. He says the company also has high-velocity pick zones where employees are tasked with kitting and picking the PDC's most ordered items. "We are always analyzing our data to fi nd the most economical pick path," says Fulks. "It allows us to reduce labor costs and improve [fulfi llment] times." The same lean processes can be found at Dorman, Shultz says. "We are continuously challenging ourselves to remove unnecessary steps from our system," he says. "If you have 42 steps in your [order fulfi llment] process and you're only adding value with 10 of T R U C K P A R T S & S E R V I C E | J a n u a r y 2 0 1 5 Service Bay Meritor's parts distribution center has been carefully organized to maximize picking effi ciency and ensure on-time delivery. Fulfi lling customer orders is the most critical point of this entire [industry]. – Brandon Ford, director of sales and marketing for Power Train Companies