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Old 10-18-2010, 04:26 PM   #1
Lahaina4me
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Default Chrysler Parts ARO Program

I'm new to the Chrysler programs. What are your experiences with this program? It seems our inventory has doubled in 10 months! Let me know what you think. Thanks
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Old 10-18-2010, 07:52 PM   #2
79LilRedExpress
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Thumbs down Not for us

Quote:
Originally Posted by Lahaina4me View Post
I'm new to the Chrysler programs. What are your experiences with this program? It seems our inventory has doubled in 10 months! Let me know what you think. Thanks
We are a small A store...
I find, IMO, no value what so ever in this program.
I feel its a way for the factory to have a floating parts depot.
Their parts inventory is on the dealers shelves(paid for) instead of at the parts depots on their dime.
Again, just my opinion....

PS... welcome to the forum
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Old 10-18-2010, 11:04 PM   #3
XDCX
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Quote:
Originally Posted by Lahaina4me View Post
I'm new to the Chrysler programs. What are your experiences with this program? It seems our inventory has doubled in 10 months! Let me know what you think. Thanks
Lahaina4me - First post - Welcome to DealershipForum

I moved your post from the Automotive Discussions section and moved it to the Parts sub-forum in the Chrysler section.

I also found another thread that discussed Chrysler's ARO system - click here

It's been awhile since our member JoeRocket has been on the forum but I think you'll find his information supports what you've experienced.
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Old 10-19-2010, 01:19 PM   #4
jayhawk
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weve chosen not to participate in aro. our goal is to decrease dollars on the shelves and increase dollar and unit turns. i trust our parts mgr. to manage,, not any form of aro.
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Old 11-02-2010, 12:41 PM   #5
Lahaina4me
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Default Aro parts

Thanks for the feedback!
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Old 11-02-2010, 01:47 PM   #6
SHACOS
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ARO heightens your exposure to inventory aging and theft. It wouldn't be a good program for me. I never understood the benefit for the dealer. Maybe I'm missing something? Maybe I should check out that other thread.
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Old 12-09-2010, 07:35 AM   #7
JoeRocket
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Sorry I'm late to the thread...

As a Chrysler PM, I'm pretty pleased with ARO. I realize that many parts managers can do as good of a job at selecting their own inventory and stocking levels (I have for years), but you can STILL manage this with ARO and also have decent obsolescence protection. True, inventory levels will rise when ARO goes online....but think about why and what it means to you. The phase-in is much more aggressive which means your off-the-shelf fill rate will be greater. You also have the benefit of stocking data being sourced from your region.

As with anything, ARO has to be managed correctly for it to make sense. The Parts Manager has to authorize the part numbers and stocking levels that ARO suggests. Guaranteed Returns must be handled promptly. If your PM just clicks "accept all" and never checks his returns this system will NOT benefit your store.

Additionally, other things are tied into ARO. Return allowance, Dealer Rewards and so on. Skipping out on ARO lowers your benefits in these areas.

Best thing to do is to get ahold of someone that has proper working knowledge of ARO to evaluate whether or not your dealership is using it correctly.
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Old 03-18-2011, 09:10 AM   #8
bill8972
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Default Love ARO

My experience with ARO has nothing short of exceptional. I was VERY skeptical at first about how this would impact our inventory investment. The increase in total inventory when we started was minimal. We have been on ARO almost two years now. My idle stock that is not protected by ARO's buyback policy is less than $200 and I have over $2500 of return allowance and very little to return. With this excess we can be very flexible in allowing customer returns or not getting hammered when we order a wong part. ARO is also very easy to administrate and you have the flexibility to override ARO suggestions.
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Old 03-18-2011, 09:22 AM   #9
79LilRedExpress
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Originally Posted by bill8972 View Post
My experience with ARO has nothing short of exceptional. I was VERY skeptical at first about how this would impact our inventory investment. The increase in total inventory when we started was minimal. We have been on ARO almost two years now. My idle stock that is not protected by ARO's buyback policy is less than $200 and I have over $2500 of return allowance and very little to return. With this excess we can be very flexible in allowing customer returns or not getting hammered when we order a wong part. ARO is also very easy to administrate and you have the flexibility to override ARO suggestions.
Welcome !!!

Are you sure you're not a factory guy ???

Just kidding... Glad it's workin for ya....
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Old 03-18-2011, 10:19 AM   #10
XDCX
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Are you sure you're not a factory guy ???

No worries, I made sure his IP Address and the dealership location matched.

Auburn Hills was reading the forum this morning, however. Someone was reading the thread we had when we first learned about Motor Village of Los Angeles.
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Old 03-18-2011, 11:25 AM   #11
steve_biegler
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Best keep a look out for black helicopters X-Man
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Old 03-18-2011, 01:23 PM   #12
bill8972
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Originally Posted by 79LilRedExpress View Post
Welcome !!!

Are you sure you're not a factory guy ???

Just kidding... Glad it's workin for ya....
To be quite honest I fought going on ARO tooth and nail at first and didn't really fully buy into it until we had been on it for a year and I saw how little unprotected idle stock we had. That said, we are a small dealer (only $35,000 in MOPAR inventory and $120,000 if Ford) and maybe that has something to do with my level of satisfaction. There are days now that I wish Ford had a program like this.
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Old 03-18-2011, 01:41 PM   #13
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Best keep a look out for black helicopters X-Man
No, it's all good. I like it when Chrysler and the other OEMs drop by and read the forum. I think we have some really smart people here and it's a great way for the corporate managers to get some retail insight.

My only issue is when someone from the factory falsifies their credentials in an attempt to gain access to the forum.
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Old 05-31-2011, 01:34 PM   #14
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I have been on ARO for about 3 years and just like anything else it has ups and downs. Personally I like not having to micro-manage every part and it frees up alot of time for other needs, however one drawback I found is the guarantee, if the part supercedes you lose said guarantee, at least from my experiences thats the case. Again just my .002



-Joe
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Old 05-31-2011, 02:30 PM   #15
JoeRocket
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Originally Posted by Parts_Slinger View Post
however one drawback I found is the guarantee, if the part supercedes you lose said guarantee, at least from my experiences thats the case. Again just my .002



-Joe
Hmm. That shouldn't be the case...
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