On Demand Delivery – the #1 key to wholesale success

On Demand Delivery

On demand delivery is the most important service for repair shops and is why shops choose the aftermarket over dealers. Shops buy less than 10 percent of their parts from dealers and mostly name slow delivery as the main reason. So, adding a local delivery service is the best way to grow sales.

Fast auto parts delivery is the service that has the greatest impact on shop gross profit. And while other services matter, focusing on the service customers expect is the best way to grow the business.

Hire a Last Mile Carrier

An on demand delivery model is the most important service to offer. In fact, data shows that shops are 5x as likely to buy from a dealer who can deliver a part in less than 45 minutes. And with technology and services available today, it’s easier than ever for dealers to deliver orders fast.

Why you need Fleet Dispatch Software

Using a quality fleet dispatch solution such as Elite Extra offers a lot of value for your dealership. Dispatch is an art and a science which is why logistics companies use dispatch software.

If you are not using dispatch software, your fleet costs are likely high, and your service is poor.  As a wholesale dealer, you are operating a fleet. So, if you are not using software odds are very high that you are spending more than you should to provide service.

And organizing your fleet offers additional benefits such as delivery tracking, proof of delivery, and a mobile app to guide and track your drivers.

Introduce your On Demand Delivery Services

Consumers expect their vehicle to repaired fast, which is why shops need parts fast. Offering on demand delivery helps wholesale shops receive the fast parts deliveries they need. Luckily, on-demand hotshot services make fast delivery easy. 

So instead of buying new trucks and hiring new drivers who spend most of their day idle, build your on demand delivery by signing up for a last mile carrier. And the best part there is seemingly an unlimited number of drivers so you can provide a customer centric parts delivery.

And with many service providers you can use the company that covers your service area. Some of the top service providers are Elite ExtraRevolution PartsLyft, and Roadie. Because each service has its benefits and coverage area, 3NG Consulting can help you find the right service for your business.

Pick an area of shops close to the dealership for your hotshot services. This will help lower costs and effort while you and your team get used to selling the new service.  And once you have the first small area mastered, grow slowly to make sure you meet the service levels you are promising to your customers.

Profitability and Local Delivery

The best part of using a last mile-carrier is cost management. It can be cheaper to use a final mile service than it is to use your parts delivery driver. But you need to manage your costs and set policies to avoid cost overruns. 

Start by selling to shops within a 5-mile radius. And since a lot of shops are often nearby, you don’t need to grow until you have your last mile delivery services perfected. And if you need help along the way, 3NG Consulting Dealer Services can help. 

Most on-demand hotshot services will only deliver one piece. So, buy some boxes, sell the whole job and send one hotshot delivery with multiple parts. It will help spread your per delivery cost across more revenue.

Market Your Last Mile Delivery Service

Your Parts Countermen answer dozens of calls from mechanical shops looking for price and availability. Offering on demand local delivery can be a nice surprise. And even if you don’t sell the part, your shop customers will know you can get deliver parts quickly.

Brag about your new service and don’t forget to talk about the bells and whistles. Features in the local delivery app such as order tracking and proof of delivery offer customer centric value.

Advertising works, so spend on flyers, emails, and web announcements to tell your customers about your new last mile delivery experience. And don’t just do it once, you need to reach a B2B customer at least 3 times before they will start to hear your message, so send at least 3 emails and send flyers every time you deliver a part.

Measure Your Progress

Most dealerships know how much they spend on their fleet, but not as many know the actual per stop until they use an electronic dispatch system that collects tracking information. 

A good dispatch system such as Elite Extra uses tracking technologies to provide cost per hour, per stop and per driver and show opportunities to reduce cost. And that’s only the beginning. The right solution can also help integrate fleet, delivery, and shipping services to help you achieve maximum profitability while maintaining your target service levels.

Karl Krug

Karl Krug

Karl Krug is the Chief Strategy Officer of 3NG Consulting and specializes in automotive parts and service solutions and marketing. 

More Insights

last mile delivery
Fixed Operations

Parts Department Guide to Last Mile Logistics Solutions

There are many business approaches to last mile parts delivery and even more last mile suppliers to choose from. Companies such as Redcap and Elite Extra in the United States and McKenna Logistics in Canada can help dealers offer a more complete service. Learn some of the top suppliers and the services they provide.