Hyundai Motor America Implements OEConnection's D2D Express(R) Technology
To Increase Dealership Parts Availability and Improve Customer Satisfaction
RICHFIELD, Ohio, Feb. 11 -- OEConnection LLC announces that Hyundai Motor America (Fountain Valley, Calif) has selected OEConnection's D2D Express Internet-based parts order referral solution to facilitate the same- day or next-day delivery of backordered parts. Hyundai expects D2D Express to significantly advance its parts distribution logistics, expedite dealership parts availability and delivery, and reduce overall costs.
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"We know from dealer surveys that parts availability is by far the most important contributor to dealer parts satisfaction," said George Kurth, Director of Parts Supply Chain and Logistics for Hyundai Motor America. "We chose OEConnection's solution because of its proven success in expanding the parts supply chain and reducing costs. While Hyundai already provides its dealers with high part fill rates, we expect D2D Express to further increase our dealer reach, better our fill percentages and ultimately improve driver customer satisfaction."
OEConnection's D2D Express is the industry benchmark for advanced automotive supply chain technology. It is a highly automated and sophisticated solution that creates a virtual parts distribution center (PDC) by incorporating dealership parts inventories into the manufacturer's supply chain. Needed parts are automatically transmitted from the automaker to D2D Express, which then rapidly searches part inventories using configurable rules, including finding parts at the closest stocking dealers who can direct- deliver. Order processing, billing, shipping and tracking for D2D Express shipments are integrated into automakers', dealerships' and package delivery services' systems to maximize accuracy and efficiency. The automaker console includes fulfillment history and analysis, and dealership performance statistics.
Hyundai Motor America expects D2D Express technology to help their parts supply chain process by:
-- Improving part fill rates
-- Reducing rental car expenses
-- Reducing dealership-to-manufacturer PDC parts returns by using
dealers' idle inventory to fill other dealerships' parts orders
-- Reducing shipping costs from PDCs -- especially on expensive-to-ship
parts -- because the closest dealers handle delivery
-- Reducing backordered parts air freighted from Korea.
"Our D2D Express technology is an automated and efficient answer to auto manufacturers' parts supply chain challenges," said Ted Fellowes, OEConnection's Vice President, Supply Chain Solutions. "OEConnection's expertise in technology, Internet applications, and the auto industry allows us to provide Hyundai with a solution to improve their inventory efficiency and proactively assist dealers with reducing idle inventory. It will also help Hyundai gain increased control of dealer stock by referring orders between dealers as well as from their distribution centers."
D2D Express is being used by several other automakers to help solve emergency backorder part challenges. Aggregate results include a fill rate increase of over 50 percent for backordered parts, which means customers are getting back on the road in the same-day or next-day time frame -- rather than days or weeks later. The D2D Express implementation for Hyundai will include the capability of processing parts for both emergency and non-emergency backordered parts as well as integration with Federal Express.
D2D Express will be rolled out to all Hyundai dealerships in March 2008. Dealers can begin filling D2D Express orders immediately after their parts inventory data collection is established. Parts departments need high-speed Internet access, delivery capabilities and overnight courier service. Orders are easy to fill, and the work flow prompts users through order fulfillment, picking, packing and shipping. Orders are shipped or delivered the same day as received.
About Hyundai Motor America: Hyundai Motor America, headquartered in Fountain Valley, Calif., is a subsidiary of Hyundai Motor Co. of Korea. Hyundai vehicles are distributed throughout the United States by Hyundai Motor America and are sold and serviced through more than 750 dealerships nationwide. Journalists are invited to visit Hyundai's news media web site: www.hyundainews.com.
About OEConnection LLC: OEConnection is a provider of web-based technology solutions for automakers, their affiliated dealers, and others in the automotive parts business. Serving over 16,000 dealerships, collision repairers, fleets and repair shops, OEConnection provides the industry's largest ecommerce parts exchange and analysis tools enabling users to better market, manage, and purchase original equipment parts. Depended on for over 4.5 million parts decisions monthly, OEConnection solutions facilitate an estimated $8 billion in annual parts trade. OEConnection is a joint venture created by Chrysler, Ford Motor Company, General Motors, and Snap-on Business Solutions. The company is headquartered in the greater Cleveland area at 4205 Highlander Parkway, Richfield, OH, 44286.
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