What have been some of the most important changes for service parts logistics compared to 20 years ago?

Executives and experts agree that the shift towards more customer-focused logistics, including more frequent order and delivery, has transformed many aspects of aftermarket logistics, leading to a significant decrease in lead times in both inbound supply and, especially, to dealers.

Volkswagen Group’s Anu Goel describes a fundamental switch in both dealer and supply order approaches. In the early 1990s, carmakers encouraged dealers to order parts once a week in bulk, with next-day, emergency orders available from express providers. In the 1990s and early 2000s, on both sides of the Atlantic, OEMs switched to dealers ordering parts daily with them arriving overnight by the following morning. In the US, 11 out of the 16 major carmakers now offer next-morning delivery as standard, according to data from Carlisle & Co, a consultancy and research group that compiles service benchmarks.

With most OEMs committed to next-day delivery, carmakers continue to target later order cut-off times for dealers, with some now able to order in the early evening and still receive parts the next day. Same-day services to major markets are also increasingly common for a number of major carmakers in Europe, the US and China.