September '14

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64 • RV PRO • SEPTEMBER 2014 rv-pro.com M ost RV dealerships and service operations must procure goods that are needed to maintain, repair, and otherwise support the coaches and towables that are sold and repaired at their businesses. Regarding the procurement of and possibly the return of these goods, please answer the five questions listed below: 1) From how many primary suppliers do you purchase parts, accessories, and materials? (Note: There could be other suppliers with which you occasionally do business, and it might be necessary to ask about their policies when placing that occa- sional order. Please note that suppliers include RV manufacturers, suppliers of parts and components for those RVs, and wholesale distributors of parts, accessories and materials.) 2) What are the policies and procedures man- dated by each of these suppliers regarding your busi- ness interactions? 3) How frequently are these policies and proce- dures changed? 4) How do you learn about these policies and procedures? 5) Why is it important that you understand and comply with these policies and procedures? is column is intended to provide some answers to each of these five questions. For questions No. 1 through No. 4, it will be necessary for you and/ or your parts manager to provide most of the answers because these questions are specific to your RV business operations. However, I have included some information and a tool that could assist you in obtaining and recording answers to each of the five questions. So, let's start with … Question No. 5 I am posing these five questions because I believe that it is very important that you are aware of the policies and procedures set forth by your primary suppliers of parts, accessories, and materials. By being familiar with – or at least having quick refer- ence to – these policies and procedures, you and your associates can efficiently, effectively, and profitably interact with your suppliers. Many of the parts managers at my clients' deal- erships are unfamiliar with the current policies and procedures mandated by their primary suppliers. I have emphasized the word current in the previous sentence because suppliers occasionally change their methods of doing business with their customers. If I have piqued your interest enough that you have decided to inquire about these policies and procedures with each of your primary suppliers, then please request a printed version. is printed version Supplier Policies & Procedures: Why They Matter Being familiar with supplier rules regarding critical orders, returned goods, special promotion orders and warranty on defective goods can help retailers run a more effective operation and improve their bottom line. MEL SELWAY is the president of P.A.R.T.S. Inc., an Amado, Ariz.- based firm providing business management analysis and training to retailers. He can be reached via email at melselway@aol. com or by calling 888-2Get-Mel. Fig. 1 Functions and Policies Suppliers Stock Order Critical Order Promo Order Stock Return Shipping Return Retail Warranty Service Warranty OTHER OEM 1 Transmit cutoff time Who pays freight? Product mix How frequent? Time limits Documents req'd Documents req'd free freight policy What qualifies? MIN qty/item Who pays freight? Who pays freight? Time limits Time limits for submit Time in transit Documents req'd Who pays freight? MIN $/line Documents req'd What if installed? hold parts for X days Quantity breaks Transmit cutoff time Time in transit restock/repack fees time limit for resubmit OEM 2 OEM 3 OEM 4 SUPPLIER POLICIES AND PROCEDURES 1. Add/change OEM/After Market suppliers to suit your dealership 2. Change font size to fit 3. Adjust column width and/or row height to suit the text needed to explain P&P 4. Add rows/columns as necessary to record all P&P

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