Ramping Up Heavy-Duty Parts Support
Learn how big of a problem the parts shortage in the trucking industry actually is and when we can expect to see it end with the help of companies like Dorman Products.
Episode 105: In this episode we discuss the current supply chain issues and the effect it is having on the heavy-duty industry. Daniel Simon is from Dorman Products, and he talked to us about how Dorman Products has taken a very proactive approach to provide the industry with the support it needs to overcome the current supply chain issues caused by the pandemic. He is a returning guest and you can listen to his first appearance on the show on episode 58 where we discussed key drivers to sell more heavy-duty parts.
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Impact of Supply Chain Issues
“It’s about as difficult of an environment from a supply chain standpoint, as I have ever seen,” exclaimed Simon.
- Deeper than solely a shortage of raw materials.
- Challenges with container availability, and transportation (boat and trucking).
- Ability to get new labour and train is difficult right now.
- Hard to get needed parts.
Lack of Diesel Emissions System Parts
- Lack of needed parts really puts a truck down.
- Only one or two players in the market for raw materials, so if one supplier has difficulties it affects everyone.
- Diesel emission parts are being used on new vehicles as a priority, and then goes down the line. Huge demand for these parts for the 2nd or 3rd owner.
Boosted Production… Still Not Enough
“The OE’s are reliant on the current tier 1 parts manufacturers, and this affects the entire supply chain,” explained Simon.
- There is a backlog on new truck builds, and so almost all of the OE parts are being used solely on new builds, not leaving enough for fleets.
- Less of a focus on the aftermarket and after sales support.
The Economic Impact of These Supply Chain Issues
“It’s almost incalculable. Uptime is the difference between profitability, and non-profitability for fleets,” said Simon.
- Supply chain is hyper focused on the OE channel.
- Next in line are large national fleets.
- Finally come the smaller to mid-sized fleets. These ones are most impacted by shortages.
- When there is one hiccup in the supply chain, there is a huge impact on the fleet business.
Support from Dorman Products
“Dorman is very fortunate to have a 1+ Billion-dollar organization that has a global supply base that we can divert some of those resources to medium and heavy-duty trucks,” explained Simon.
- As the economy started to reopen, Dorman Products was able to support the industry by shifting resources to carry the load.
- Dorman has had demand for specific products that went up 6000% in a week.
- Was able to respond to the demand for parts and stay in stock.
- Dorman did not change the raw materials or sacrifice quality. When you order a part, you will receive OE comparable parts that you can trust.
When Will These Supply Chain Issues Be Resolved?
“If I had to take a guess to when things are going to ease up, we are probably looking at 18-months until we are back to a normal supply in the aftermarket,” predicted Simon.
- Even if OE’s do catch up on out-of-stock parts, they have a huge backlog of new trucks that will be first in line for the parts.
Dorman Products is dedicated to supporting parts distributors and fleets. To signup for regular product announcements, go to DormanProducts.com/signup.
Complete Transcript of Episode
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