A company specializing in facility solutions traditionally relied on stock purchases and original equipment manufacturer (OEM) pool programs to acquire vehicles rapidly as business operations expanded. However, recent supply chain challenges led to the near disappearance of OEM pools and limited the availability and pricing of dealer stock units. The company needed an alternative method for fast vehicle acquisition.
Facing difficulties in sourcing vehicles for field operations, the company collaborated with Wheels to devise a solution.
Strategy: Innovative “Fast Track” Program
The company consulted with Wheels to develop a ‘Fast Track’ program, adapting to the new OEM allotment landscape. This involved the creation of an in-house pool management system. With finance department approval, they bulk-ordered vehicles at the start of the order cycle instead of making ad hoc orders. A pool allocation program was then established. As vehicles became available, they were allocated to specific regions. Units were stored at the upfitter’s location and ‘claimed’ by field units for upfitting. This system allowed upfitted vehicles to be placed in the field in about 45 days. Regular weekly calls were held to review the master order and assess the number of vehicles available.
Results: Significant Time and Cost Reduction
This strategy led to a substantial reduction in lead times, with the time from allotment to delivery of fully upfittedvehicles reduced to 45 days from the previous average of 180 days. Factory orders increased by 200%: for the model year 2023, factory orders accounted for 76%, while stock orders made up 32%. This program effectively replicated an “Amazon-like Experience” for field operations. Regional locations could log into the system, select a vehicle from the pool, configure their upfit, and receive a completed vehicle within 2 to 4 weeks. The result was a streamlined system that saved months of waiting time and provided cost savings in the millions.
