ARI’s Partha Ghosh Examines the Trends Impacting Order-to-Deliver Times in Automotive Fleet’s 18th Annual OTD Survey
Every year, a variety of factors contribute to the time between commercial vehicle order and delivery. Some factors are easy to predict, such as new models requiring extending quality holds by the manufacturers. While others are often unexpected, including unpredictable weather patterns and the delicate balance between retail demand and production allocation.
In this year’s annual order-to-delivery (OTD) survey, Automotive Fleet summarizes the top factors influencing OTD for 2017 model year vehicles. Subject matter experts from nine fleet management companies, including ARI’s Partha Ghosh, director of North American supply chain, compared 2017 to 2016 OTD and discussed reasons for an overall improvement in the process including: a softening of retail demand that improved production allocation; greater availability of railcars; fewer extended quality holds on newer models, and milder weather.
“While some vehicles produced outside of the U.S. had longer/extended lead times, the OEMs proactive communication helped to properly support our customers’ expectations. An improvement in vehicle logistics (railcar availability) had a positive contribution, as well as softer retail demand trends,” said Partha Ghosh. “Weather and quality holds typically impact the delivery process, regardless of the model-year, but they were not a significant factor as had been experienced in the past.”
To read the full survey results, click here.
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