Parts availability is definitely not a problem for Kia, despite what you may think!
From importing and retailing two model ranges through 12 dealerships in 1998, to eight complete model ranges sold through 70 dealerships, KIA Motors has seen dramatic growth and expansion in its sixteen years of doing business in South Africa. But, what is their key to success? Kia tells us what they think it is: Availability and award-winning service.
The facility currently holds stock in excess of R40 million, with 16 000 lines comprising all parts that move twice in a six month cycle. With such abundance of stock at hand, and especially on those line items that have high turnover, KMSA has been able to ensure that its dealer network can offer customers top-notch service levels with quick turnarounds.
“Parts availability is definitely not a problem for Kia Motors South Africa,” continues Hans Stenger. “Parts are ordered by the dealerships in real time and couriered from the PDC twice a day for delivery on the next business day. Our Gauteng-based dealerships can also collect directly from the PDC if a part is needed urgently,” he adds.
There are however certain parts, like trim items and wiring harnesses, that is not held in stock at KMSA’s Parts Distribution Centre and which must be ordered from KIA Motors Corporation (KMC) in South Korea.
Kia’s pro-active position on parts availability has had a notably positive influence on the service levels maintained by the company’s dealer network and approved body repairers.
The South African motor industry offers a number of solutions for measuring business components such as parts supply, including the annual National Automobile Dealer Association (NADA) Dealer Satisfaction Index (DSI) Survey, which is divided into 13 focus areas of interest to the NADA membership at large, including aspects like Dealer Satisfaction, Communication and Relationships, Dealer Support and Parts, as well as Goodwill, Policy Claims and Warranty, to name but a few. In the most recent survey, Kia ranked highly for parts.