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New distribution system will save DaimlerChrysler R47-m a year Decentralisation will supply within h

09 Dec 2003 - by Staff reporter
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Ed Richardson DAIMLERCHRYSLER has implemented the first phase of a new parts distribution system that the manufacturer says will increase availability and reduce the price of parts. The R50-million Distributed National Inventory (DNI) decentralises DaimlerChrysler South Africa’s (DCSA) entire parts inventory in order to place all the parts closer to franchised dealer workshops, panel shops, and fleet owners. DNI will manage the inventory through the creation of ‘virtual warehouses’ managed by a team of experts using a R35 million custom-designed system, which is expected to reduce overall inventory holdings in South Africa by 40%. At dealer level, DCSA will take over the responsibility of stock management and replenishment, the distribution and delivery of parts to customers, and the inter-locational movement of parts. The goal is to deliver all parts to the technician within two hours of the order and to improve efficiencies. DCSA expects to save R47-million a year.

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