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Official BUSRide Maintenance Roundtable Discussion:
Parts and Parts Distribution
Spon sored by:
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Table of Contents Official BUSRide Maintenance Roundtable Discussion: Parts and Parts Distribution
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About ABC Companies
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About CH Bus Sales
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About Motor Coach Industries
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About REV Group
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O F F I C I A L
BUSRide Maintenance
ROUNDTABLE
DISCUSSION
Parts and Parts Distribution BUSRide Maintenance spoke with experts from around the maintenance industry about parts and parts distribution – current trends, supply chain developments, changing operator demographics and the value of third-party parts vendors.
Our Panelists: John Gillis, director of parts division, ABC Companies Tim Guldin, vice president sales and service – Southeast / Neil Wells, director of operations – Parts, CH Bus Sales Scott Robertson, vice president of product management and engineer, Motor Coach Industries (MCI) Todd Pocobello, director, Product & Dealer Services, REV Bus and Mobility Group
Are customers reducing parts inventories and relying more on you, the OEMs? If so, what types of parts / components are they no longer stocking?
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this decision lies in the size of the operator’s fleet and the type of operation they are.
John Gillis: We see that customers are relying more and more on ABC Companies to stock everything that pertains to brakes, airbags and other high-consumable items. Customers are reducing their inventory levels by relying on the OEMs for more parts support.
Scott Robertson: I think customers are reducing their inventories and relying more on us, the manufacturer. Basic maintenance parts are usually the target of inventory reduction activities. Those are items that are available to ship throughout our network of warehouses. If we have the part in stock at a regional warehouse, it can be at the customer location in a day or two via ground freight.
Tim Guldin & Neil Wells: Many customers aren’t afraid to stock items that will ensure the uninterrupted operation of their fleet. However, they’re not tying up large amounts of dollars in non- maintenance and non- critical items. Much of
Todd Pocobello: Fleets today have reduced their on-hand inventories as our technology has improved to provide quicker order fulfillment. Fleets are now able to eliminate much of
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the vehicle specific components and are only focused on the maintenance requirements to keep their vehicles in service.
In the past five years, what has been the most significant change in the parts supply chain – from OEM to operator? Gillis: The shift from customers stocking their own parts to relying on us is the most significant change I’ve seen in that period. From a supply chain perspective, we’re taking on a heavy inventory investment to support customer’s needs. Customers are buying more on availability versus price, because they are not keeping any products on the shelves. Guldin & Wells: We would say there hasn’t been any major change in the last five years. Most of the emission changes have been subtle compared to 2010 and 2007. Robertson: The internet has made shopping easier and has increased competition. Pocobello: E-commerce enhancements have provided more tools for the operators to obtain the parts and materials more effectively without seeking assistance from a dealer.
In the past five years, what has been the most significant change in the customers who are ordering parts? Gillis: Our online store has grown around 75 percent in the last five years. That’s a result of a younger generation feeling more comfortable with an online store versus ordering over the telephone. Guldin & Wells: Customers are ordering smarter and better utilizing technology. They’re more resourceful on-line when it comes to finding what they need. Robertson: Customers are shifting to online purchasing as that becomes more common in their lives. For customers that do call in, expect better service and lower hold times than ever before. Pocobello: The raised expectations of order fulfillment times. It is expected that any part can be delivered same day or next. There is also less loyalty to the purchase with more and more options becoming available to source from.
With so many changes, both economical and technological, affecting the parts industry today, how are the roles of your sales and field representatives changing? Gillis: We’ve shifted from a “meet-and-greet” salesman to a more technically-inclined parts representative. They can handle customer problems in real-time because they intimately know the buses and their parts. We have internal support to get instant feedback to the customer, which is crucial in today’s timecrunched industry.
Guldin & Wells: Representatives now need to be more involved in assisting operators with their needs. It’s not enough to show up with a line card and say hey. Operators are looking for those vendors who are willing to help them not only to supply parts but help them overcome trouble spots or be problem solvers. Robertson: Our sales and field reps need to be the eyes and ears of the organization at the customer location. I want our team to communicate the value of doing business with MCI and focus less on transactional sales. Pocobello: Our field staff is critical to maintaining relationships with our customers. The parts business is more “service” than just fulfillment today.
What kind of components and parts are customers seeking from OEMs, and what items are they seeking from third-party vendors? What should dictate that decision? Gillis: Everything from glass, body panels, brakes, etc. ABC also offers a wide range of aftermarket parts as well. It’s all about helping the customer drive down their cost per mile. Guldin & Wells: Customers are still coming to the OEM for a full range of items. The difference is they’ll go to thirdparty suppliers if they’re not satisfied with the offering from the OEM. The OEMs are expected to compete with the thirdparty suppliers and offer more than just the OEM product. Safety and reliability should always be the first factors considered when buying OEM versus aftermarket. Decreased prices are great provided they’re not leading to a lesser quality. Robertson: I think it’s all over the board. Some customers see the value in OEM body panels, but others will spend less on the part and more labor to install it. To me, you always know what you are getting from an OEM. Any of our competitors can put an MCI part number on a will-fit part. To us, the MCI part number means you get exactly what was engineered and installed at the factory, and that is valuable. Our challenge is to make sure we are market priced as much as possible to discourage our customers from having to shop. Pocobello: Customers have always been limited on brand specific parts to acquire from the OEM, but generally try to source all other materials locally. This has been historically driven by the perception that the OEM will be costlier and take longer. Applying focus to the customer’s top concerns of availability, part quality and pricing from the OEM will help customers know they are getting the best parts at the best value.
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THE INDUSTRY’S ONLY FAMILY-OWNED OPERATION In an industry dominated by corporate-controlled competitors, ABC remains a family-owned and operated business. Throughout our history, ownership of ABC Companies has stayed with the Cornell family, beginning with founder Clancy Cornell and currently under the senior leadership of Cornell family members. Since its inception over five decades ago, ABC Companies has grown exponentially to become a leader in motorcoach and transit equipment sales and service. By offering a comprehensive array of after sales support services including live tech support via the ABC CustomerCare call center; live and interactive parts sales and sourcing; complete vehicle maintenance, refurbishment and mechanical services and private and municipal equipment leasing and financing through ABC Financial Services, we continue to sustain our leadership position. Visit www.abc-companies.com for more information!
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7 State-of-the-Art Service locations
Certified Technicians
200,000+ Part Numbers
8 Strategic Part Distribution Locations Quality OEM & Aftermarket Replacement Parts
Cutting-Edge Service Equipment
Full Service Paint Solutions BASF and PPG Certified
Collision Solutions
Full Service Custom Graphics & Installation
65
years of service experience ABC is your trusted source for all of your parts and service needs.
PARTS: 877-427-7278 SERVICE: 844-287-3183
or visit www.abc-companies.com
*Subject to applicable terms and conditions. Some exclusions may apply. Š 2016 ABC Companies. All rights reserved.
CH Bus Sales began as the exclusive distributor of TEMSA motorcoaches in September of 2011 by first solidifying an industry experienced ownership and management team. CH Bus first distributed the TS 35 mid-size motorcoach in response to the recognized industry trend of charter and tour groups getting smaller. Now the industry had a high quality and comfortable coach that offered all the amenities of a full-size coach but was more economical to purchase. With much success in this niche market, CH introduced a smaller 30-foot, fully integral, mid-size coach in 2012, which seats up to 34 passengers. Once the TEMSA brand grew in the market, it was only a matter of time that operators would be looking for a full-size model. After many years of thoughtful construction, CH Bus introduced the full-size TS 45 coach in 2014. The supreme quality of manufacturing that TEMSA brings to the market, partnered with the experience of the CH Bus Sales team is a driving force for success that is unmatched.
More About CH Bus Sales: Company Contacts Sales Contacts Services
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THE smart choice THE smart choice
…for A TRUSTED NAME.
When you choose CH Bus Sales, you’re making a decision to work with some of the most experienced management and service teams in the industry. We’ve partnered with Temsa – a great quality European manufacturer – to provide you with dependable products that match our reliable service. Now that’s a winning combination. Our team is focused on helping you improve your business. When you buy a Temsa, you become our partner in success and a part of our family. We believe in relationships that last, and service that comes in first.
For more information, contact CH Bus Sales at: 877-723-4045 or visit www.chbussales.com
CH Bus Sales is the exclusive distributor of Temsa motorcoaches in the U.S.
When it comes to providing service for your motor coach fleet, we’re in overdrive. We’ve been expanding our network of MCI service centers and Authorized MCI service providers to bring you the quality, reliable service you expect from MCI, when and where you need it. In fact, you’ll find an MCI service presence in or near many of the largest metropolitan areas in the U.S. and Canada. YOU’LL FIND MCI SERVICE CENTERS WHERE MOTOR COACHES GATHER With locations in or near Chicago, Orlando, Anaheim, Dallas, Philadelphia, and Montreal, MCI service center network locations meet the strategic needs of motor coach operators for equipment maintenance, repair, and service. Each service center leverages specialized diagnostic tools to get your coaches back on the road fast. Key service center locations are equipped for collision repairs, paint, and body work. Our service centers are also approved for Detroit Diesel, Allison Transmission, ZF ASTronic Transmission, and HVAC systems warranty service. MCI also offers retrofits with OEM wheelchair lifts. You’ll appreciate our competitive pricing on labor and parts, as well as our 90-day limited repair warranties. And your drivers will appreciate our comfortable customer lounges and convenient service hours, with some locations open in the evening If necessary, we can make towing arrangements to get your coach into the nearest MCI service center or Authorized MCI Service Provider.
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MCI REPAIR AND RECONDITIONING CENTERS MCI specializes in the repair of all makes and models of intercity coaches and transit buses. Our skilled technicians offer: • Major collision repair and body work • Coach painting in a state-of-the-art paint booth • Complete mechanical repair services, including chassis, suspension, brakes, air conditioning, and steering • Coach modifications and wheelchair lift installations • Insurance estimating and appraisal services • Immediate access to replacement parts on-site and 24-hour delivery of parts from the MCI inventory at our Louisville, Kentucky, distribution facility • Repair or replacement of body and structural components So, whether your coach is damaged or just showing its age, we can make it look as good as new. We can even arrange towing of your damaged coach to our facility from anywhere in the U.S. and Canada.
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REV is a leading manufacturer of motor vehicles for bus, emergency, specialty and recreation markets worldwide. Our companies innovate, design and build products that connect and protect thousands of people every day. REV’s lineup of products includes ambulances, fire trucks, shuttle buses, transit buses, terminal trucks, street sweepers, luxury motorhomes and wheelchair accessible vans. REV owns 26 brands, employs more than 6,000 people in 16 different plants in the U.S. and produces more than 20,000 specialty vehicles annually.
Visit www.revgroup.com for more information!
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SOME BUSES WERE MADE TO CARRY OUT TASKS.
OURS WERE MADE TO ACCOMPLISH MISSIONS.
What do school, shuttle, luxury and transit buses all have in common? Purpose. Each are called to perform duties that impact lives. We never lose sight of that responsibility and place it into every vehicle we make. We are REV and we make eight of the hardest working, most reliable, bus brands on the road. www.REVGroup.com
Finance Through REV Group - Flexible term vehicle loans with competitive rates and TRAC/Split TRAC/FMV leasing options available. busridemaintenance.com | BUSRIDE MAINTENANCE
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