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ARO Expand / Collapse
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Posted 11/7/2007 4:50 PM
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Last Login: 11/9/2007 1:34 PM
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I am fairly new to the business, and we are considdering going onto the ARO Program. After reviewing some of the details, it sounds like the program manages the dealerships inventory. If on the program, is a parts manager still needed? 
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Posted 11/7/2007 6:26 PM
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Newbie,

To make this short.... Yes, you do need a manager.  In fact, our average Chrysler client on ARO has roughly 35% on average of their inventory being guaranteed by Chrysler.  This means that there is still 65% of the inventory the dealership is responsible for.  This does nothing to save time for the manager, as you now have to interact with the Dealer Connect website to approve or disapprove of stocking decisions.  It is not a bad thing, and you might as well get used to it, because it isn't going to go away, but don't "drink the Kool Aid" into believing it will be your "solve all" to inventory woes.  In fact, Chrysler is pushing a program right now (Promo GB1) that will give you 15% discount on orders over $10K and will guarantee the inventory for 9 months.  Marketing is already beginning to proliferate the true intent of the ARO program by "pushing" inventory to the dealers.  The true intent, if not stated already, is to create a "pull" system to dealers and get them to stock more breadth to satisfy customer demand and limit idle inventory, not overstock dealers with junk...

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