Giammalvo Files
Mark Giammalvo specializes in driveability
diagnostics at his family business,
Sam Giammalvo's Auto Sales & Service, Inc. in New
Bedford, MA.
Mark, who has been with the business for
over 20 years, is an ASE Master Technician and Parts Specialist.
He also holds the ASE L1 certification, and has an
associates degree in business management.
Mark is also a writer for Motor Age Magazine and is the past secretary
of the Alliance of Automotive Service Professionals, (AASP).
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Now Thats A Backorder
(Printed in the Journal of The Alliance
of Automotive Service Providers, AASP)
What would you say if I told you an OEM part was on back order for
6 months and 1 day? Not really unusual would you say? Well, what if that
back order item was a seat belt? (I can see some attorneys licking their
chops regarding this back order.)
Here's the story: Way back on September 9, 1998 we took one of our
customers cars to the local Ford Dealer for warranty work. The vehicle
was a 1994 Ford Explorer and was still covered by Ford's 5 year 50,000
mile safety restraint warranty. The customer's complaint was that the rear
center seat belt buckle would not stay buckled. The Ford Dealer ordered
the part and we picked up the car and returned it to the owner. About a
week later we called the dealer to inquire if the part had come in. The
dealer advised us that the part was on national back order. We advised the
customer of the delay. Now, on October 9, a full month later, the customer
called us inquiring about the status of the belt. We again called the dealer.
The dealer reported that the part was on back order but they were upgrading
the order status to the highest priority, (VIO), Vehicle Inoperative. Again
we waited as more time went by. On the third week of October we again called
the dealer to ask about the belt. The dealership had some new information.
The part was still on back order, however, a "ship date" had been
announced. The date was February 28, 1999. Wow! Now that's a back order!
Needless to say the customer was very upset with this unprecedented delay.
This customer quite often had people riding in the back seat and wanted this
repaired. We asked the dealership to give us the Ford part number so we could
do some research on our own. We subscribe to a network called Parts Voice.
This is a very large computerized database which allows us to search car
dealerships' parts departments nationwide. The search is all done over the
telephone. This is a source we can pursue when the part needed is unavailable
through local dealers. Through this database we were able to find seven
Ford Dealers in various parts of the country that had this exact belt in
their stockroom for sale. We contacted our local Ford Dealer to advise them
that we had found the part for them. This is where the fun began. The part's
manager of the dealership advised us that they could not purchase this part
from another Ford Dealership. The part had to be acquired from the Ford Warehousing
Network. "Who cares where the part comes from, as long as it's a Ford
part?" We inquired. The answer? When a Ford Dealer acquires a part through
the Ford Warehouse for a warranty situation, they are allowed to make approximately
40% on the price of that part. If the dealership was to purchase this seat
belt from another dealership in the country like we had suggested, our local
Ford Dealership would have to pay the selling Ford Dealership 10% over dealer
cost. This reduces our Ford Dealer's markup to only 30%. In addition, the
shipping charges eat up more profit. By the time the part arrives at our
Ford Dealer's door there is little or no margin for profit. If this were
not a part under warranty, the dealership would just add the increased costs
to the list price. But, when a part is under warranty, Ford Corporation is
footing the bill and they will only pay their dealers the current Ford List
Price. We suggested to the dealer that they bill Ford Motor Company for this
difference. After all, this is a safety issue here! The dealership stated
that Ford would not pay for these additional charges so they would not order
the part from outside the warehouse network. We even went so far as to contact
the Ford Customer Assistance Center to complain about this part delay. The
Assistance Center reported that we would have to wait for the part to be
manufactured and released on Feb. 28. We kept calling our local Ford Dealer
every 2 weeks for an update on the part. Finally, on March 3, there was some
new information. Our Ford Dealer read us a message off his computer screen
that was attached to this order. The message was an insider at Ford asking
a question to the vendor that builds this seat belt for Ford. The message
read: "Attention vendor, a vehicle has been inoperative since October
1998 as a result of this part, please build and ship one seat belt buckle
to resolve this situation." Then there was a reply from the vendor."Unable
to comply with your request. One critical part in the assembly of this seat
belt remains unavailable at this time. Suggest your dealer use the Ford Locator
Computer to see if another dealer in the country has this seat belt."
The part's manager at our Ford Dealership stated that since someone internal
at Ford had given permission to search other dealers, he could now search
for the seat belt outside of the Warehouse Network. He said that by printing
out this communication from the vendor he could get Ford to reimburse him
the shipping and 10% dealer charges to acquire this part. A day later, March
9, he located the part at another dealer and had it shipped overnight.
A total of 6 months and 1 day to get the seat belt.
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