Six Star Magazine Six Star Magazine Winter 2011/2012 | Page 7

STATE-OF-THE-ART PARTS CAROUSEL

Photos: Aldas Minkevicius

At Subaru Canada, we are always on the lookout for areas of improvement — this is
ingrained in our corporate culture and has spread throughout the entire organization.
The parts operation staff, for example, is dedicated to providing superior parts
availability and a state-of-the-art system is helping them do precisely that.
The system, a series of four horizontal carousels, houses some 12,000 small and
fast-moving parts. Utilizing pack-to-light technology and batch-picking capabilities,
the carousels have served to more than double the picking and stocking productivity
of the distribution centre, increasing the speed with which parts are delivered to our
dealers and their customers.

By the beginning of June, the fill rate
was already returning to its normal level.
The cooperative agreement among FHI,
SCI, SOA and dealers was so effective,
customers across Canada experienced no
appreciable hardship.
We’re proud of the many ways we show
support for our customers — and the way we
dealt with such difficult circumstances proved
that our processes are as robust as can be.
Of course, we all hope for smooth sailing
from now on, but we’re all comforted by the
fact that — in times of extreme crisis — our
organization can remain strong.

DEDICATED DELIVERY SERVICE
Under normal operating conditions, SCI maintains an inventory of 23,000 individual
part numbers and carries about a four-month supply of parts. Parts are shipped to
our 87 dealers across Canada from the Subaru Parts Distribution Centre (PDC) in
Mississauga, Ontario, or another in Portland, Oregon. The deliveries are carried
out by a number of trucking companies, but the one that supplies close to 60%
of our dealers is the Subaru Dedicated Delivery Service (DDS), which uses
logo-identified trucks.
The DDS system is virtually a miracle of modern logistics: Parts can be ordered by
a dealer one day and then be delivered to the dealer’s location prior to the start of
business the following day — the system even allows for Friday afternoon orders and
Saturday deliveries. This way, the customer isn’t waiting long for his vehicle to
be repaired in the event that the dealer did not have parts on hand in
the first place.
Currently, the DDS system serves 34 Subaru dealers in Ontario
and Quebec, as well as a further 13 dealers in Western
Canada. All parts returns are picked up and brought
back to SCI at no cost to the dealer. The service also
accommodates nighttime drop-offs that don’t
require any dealership personnel on the
receiving end. Regular performance
reports make sure that the
entire system is on track
and humming along
at all times.