CNH Industrial has launched a project to consolidate the spare parts provided for the company’s 12 brands in an effort to increase standardisation, improve inventory management and reduce logistics costs.
The initiative, called CNH Industrial Genuine Parts, has been developed by CNH Industrial Parts and Services, the aftermarket and accessories arm of the commercial vehicle conglomerate that was formed last year after the merger of Fiat Industrial and CNH Global. Worldwide, the group operates 57 warehouses, with no current plans to reduce the number, and manages more than 5m parts references that cover a parc of 3.5m machines and vehicles across the company’s 12 brands. These are: Case Construction Equipment, Case IH, FPT Industrial, Heuliez Bus, Iveco, Iveco Astra, Iveco Bus, Iveco Defence Vehicles, Magirus, New Holland Agriculture, New Holland Construction, and Steyr.
Previously, all parts entities were managed separately, but in September 2013, CNH Industrial became operational after Fiat Industrial and CNH Global merged. This allowed integration between CNH Parts & Service, and CNH Industrial, managing the supply, management and distribution of genuine spare parts. Marco Franza, parts network development manager at CNH Industrial parts & service EMEA told Automotive Logistics, “The new identity will help to bring together and leverage the Iveco and CNH footprint, becoming closer to our customers.”
The new CNH Industrial Genuine Parts project will integrate the brands’ aftermarket logistics and distribution. According to the company, it will strengthen the quality and performance of all genuine parts, support the standardisation and optimisation process of stocks management of its 5m genuine parts references, and draw on the strength of each of the company’s 12 brands.
While parts packaging and marketing across all 12 brands will be uniform, each brand retain an individual identity. In a statement CNH said that customers will receive parts that adhere to strict specifications and that its quality guarantee is aimed at improving customer loyalty and brand awareness. The common branding will also feature a specific holographic label, which will also protect customers against counterfeiting.
Operational efficiency, including inventory and logistics, is likely to be improved too as CNH will optimise part numbers, have more flexibility of supply and storage, and be able to manage costs more efficiently. This will also include consolidation. Franza said, "Costs have been taken into account in this project: [we have been] saving on the packaging cost thanks to a standard and global approach, and [saving with the] possibility to standardise parts coding among the different brands... Deliveries will be shared more and more to improve costs, and offer better service to our customers."