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INCREASED STORAGE CAPACITY
Drives Up Parts Profitability
Increased Storage Capacity Drives Up Parts Profitability. Free-standing mezzanines are an ideal way to increase storage capacity and flexibility, and accelerate service turnaround.
With ever-shrinking margins on new car sales, dealerships are looking to increase profitability through aftermarket sales. One step taken by some dealers to improve service speed, efficiency - and thus margins - is to incorporate a free-standing structural mezzanine into their parts department. Mezzanines improve operational efficiency through increased storage capacity and flexibility. Dealers constructing new facilities are stipulating that a mezzanine be included in building designs. And dealers with current facilities that have ample ceiling height are also retrofitting their parts departments with mezzanines.
Expand Inventory to Speed Turnaround
Sending out for a part costs time. The typical service department at a dealership may spend anywhere from a few hours to a few days waiting for a part. With a mezzanine, dealers can add valuable floor space and expand their storage capacity. The increased capacity allows them to carry a wider selection of parts. This reduces service delays due to part availability and, thus, helps them accelerate turnaround time. Part of the success in revamping their distribution facility is due to a 15,000 square-foot structural mezzanine from Schmidt. The 15 foot high mezzanine allowed Ann Taylor to better utilize the cubic design of the building while improving product flow and operations, including the shade determination process. It also provided them with more usable floor space beneath the structure.
"Last year, customers scheduled appointments anywhere from 4-6 weeks in advance. Now it's 1-2 days," explained Vic Delmonico, Parts Director at Ray Catena Motor Car in Edison, NJ. "Ultimately, that results in higher customer satisfaction. Providing quality service work in a more timely manner helps us achieve that goal."
The #2 Mercedes dealership in the United States, Ray Catena completed construction on their new facility late last year, and the parts department was fully operational by January of this year. The service department features a 4,000 square foot mezzanine from Schmidt for parts inventory to supply the 73 service bays. A 3,000 pound freight elevator is also part of the system. Autochem Automotive Products handled design and installation of both the mezzanine and elevator. Although paramount at Ray Catena Motor Car, customer satisfaction isn't the only benefit of installing the free-standing mezzanine. The total number of jobs completed in the first 10 weeks of 2004 increased dramatically over their totals from the same period in 2003. They're also experiencing cost savings for courtesy cars and driving services due to the quicker turnaround times on service jobs.
Be More Flexible With Storage Layout
More space isn't the only reason why dealers are incorporating free-standing mezzanines. Flexibility accounts for a portion of the decision. With a free-standing mezzanine, dealers can reconfigure and organize their storage layout as needed to improve efficiency and accessibility. Jerry Welsh is the president of Engineered Handling, a firm that designs, sells and installs material handling systems to the automotive market. Welsh recently worked with Stevenson Toyota in Jacksonville, North Carolina to help them better organize their parts department. The dealership wanted to install a shelf-supported mezzanine. The problem was that the parts department had to accommodate changes in inventory year after year due to new models. A shelf-supported mezzanine would lock the dealer into a storage layout because the shelving bins on the bottom actually bear the weight of the mezzanine span; the shelving arrangement could never be adjusted. Instead, Welsh suggested that they install a 1,100 square-foot Schmidt free-standing mezzanine, which would give Stevenson the extra floor space they needed while not the locking them into a layout. According to Welsh, "they've got flexibility forever."
Vic Delmonico at Ray Catena Motor Car also enjoys the flexibility his new mezzanine has afforded him. "Accessibility to parts is much better," he stated. The parts department is laid out to keep the most frequently needed parts on the ground floor, and others parts on the mezzanine level. The mezzanine was designed with 10-foot bins on the second level. Delmonico uses a number of different shelving configurations to maximize the space. "With the mezzanine, organization of our inventory is much better. We can find parts much faster."
Build With Less Headaches
Another advantage to free-standing mezzanines is that dealers can add a level to their facility without enduring cumbersome building and safety codes associated with structural second floors or brick-and-mortar additions. The process for installing a free-standing mezzanine is more streamlined and, in the end, costs less.
"Building codes change from one municipality to the next. It can be a major headache," commented Chuck Gubitosa, owner of Autochem Automotive Products. "Schmidt provides drawings that are stamped by a licensed engineer. That speeds the process of pulling a permit." The nut-and-bolt construction of Schmidt mezzanines allow for easy installation, and disassembly, if necessary. With a free-standing mezzanine, the structure is not permanently attached to the building.
Bottom Line Improvements
In so many industries, time is money. And the automotive industry is no different. Increasing storage capacity with a free-standing mezzanine allows dealers to expand and better organize their parts inventory. That, in turn, helps them improve aftermarket profitability through higher customer satisfaction, accelerated turnaround, increased jobs, and more flexible storage layout.
There's no doubt that free-standing mezzanines are helping dealers raise the quality and efficiency of operations in their parts and service departments.
Auto Dealerships Case Study (PDF Version)
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