GST also supplies parts to the processing center and its dealer network with a 302,000 square foot Parts Distribution Center (PDC) located in San Felipe, Texas, near Houston. This center stocks over 55,000 different parts such as aluminum wheels, cruise controls, auto security systems and protectant chemicals. Introduction and management dilemma The automotive industry is competitive when it comes to selling a car; but when it comes to car accessories, there are many products that come to mind. From tire shine to holders for sunglasses, the automotive accessory market is overloaded with gadget for one of our most commonly occupied areas (McMahon): Since purchasers of new-vehicles are exceptionally energized and there of procurement, and in light of the fact that accessories can be effortlessly included into the general package of vehicle financing, dealerships really have a noteworthy 'timing' chains vs advantage and independents with regards to adornments deals. 5 Figure 1 GST Dealership in five states
GST’s Vehicle Processing Center processes and accessorizes an average of 1000 retail and 40 fleet vehicles per day utilizing advanced processing and inventory systems that use barcodes to track the vehicles through over 25 different accessory installation stations and quality check- points. VPC installs accessories ordered by dealers i.e. roof racks, spoilers, leather seats, security systems, alloy wheels, running boards, and entertainment systems. The sourcing and selecting the right accessories go through the below five-stage process. Stage One: Ideation – New accessory ideas must be presented to the Accessory Portfolio Manager within the Model Line Team for initial review. This review considers relevance to the series portfolio, applicability, marketability, feasibility, and profitability. Ideas should be supported by a part sample/rendering and information such as part specifications, installation requirements, cost, lead time, and other information that may be requested by Product Development. Stage Two: Feasibility– New accessory ideas will be studied in depth for feasibility. An analysis is performed to regulate whether suppliers are eligible to fulfill the prospects, or whether product can meet financial expectations. Stage Three: Development and Final Evaluation – The supplier, in partnership with Product Development, will develop the product manufacturing process, installation equipment/tooling, installation instructions, production-level part approval samples, product packaging and supporting documentation. Stage Four: Launch – The first purchase order for the product is placed. The Vehicle Processing Center prepares the facility and associates for installation of the product. 6 Figure 2 GST Sourcing & Procurement Process
Stage Five: Product Life Cycle – Product quality and performance is continuously evaluated by all GST stakeholders. Succession planning and/or end-of-life analysis is performed.
- Fall '09
- Accounting, Total cost of ownership