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Parts Ordering and Returns
To better serve your customers, you need to have the parts they need in
your inventory when they need them. This seemingly simple goal is
made difficult by real-world factors: space limitations, inventory
investment constraints, and the simple fact that it would be impossible
for you to stock all of the GM part numbers!
Your challenge is to work with your inventory management system and
place orders based on proven sales performance. These may be new parts
and accessories added to the inventory, or established part numbers
ordered for restocking purposes. Clearly, parts ordering is a significant
part of what you do to satisfy your customers.
The GM Parts System introduced in March 1996 simplified the task of
ordering parts. Nevertheless, your skill and expertise are vital to making
the ordering process work based on your thoughtful decisions.
Your selection of the appropriate order type depends on whether you are
ordering for stock, for a vehicle tied up in the shop or for an important
wholesale account. To complicate matters, there is always the possibility
of out-of-stock situations at your local parts distribution center and
deviations in shipping times from numerous parts sources. The computer
simply cannot replace your common sense in making informed decisions
required to best serve the customer.
Advantages
Effective parts ordering greatly affects the success of your dealership by:
 Maximizing customer satisfaction through same-day delivery
 Replenishing stock as needed
 Quickly obtaining parts or accessories you do not normally stock

Making the best use of the dealer’s parts inventory investment.
Overview
The tasks involved in effective parts ordering are:
 Checking local sources for customer parts requirements that are not
available from dealership inventory
 Reviewing parts orders to help ensure customer-responsive inventory
 Selecting the appropriate order type(s) to facilitate the restocking of
inventory shelves and ensure the satisfaction of customer needs
 Placing orders according to GM’s policies and procedures
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 Tracking the order through the system from the time it is placed until
all the items ordered are received
 Expediting receipt of parts, as needed, if the tracking process
indicates delays that will affect customer satisfaction
 Closing out the order by updating the inventory management system
This chapter also includes information about GM Parts special benefits
and incentive programs, the procedures for returning parts to GM, for
returning eligible accessories directly to the supplier and for the core
exchange program.
Activities
6.3.2.1 The parts
manager and
appropriate staff are
trained on the parts
ordering system and
return policies.
The order process discussed in this chapter is based on current General
Motors Parts policies and procedures. Specific points of the policies and
procedures may change from time to time. When ordering supplies or
accessories from non-GM suppliers, vendors’ policies and procedures will
need to be followed. The general flow of the process and the activities
should be appropriate to any parts or accessories orders.
Checking Local Sources
According to GM Parts policy, as reflected by the Service Customer
Pledge, if the part is not available from your inventory, you should make
every effort to acquire it locally the same day. Check with other local GM
dealerships for parts availability using the RAPID 2000 Locator or any
other available locator. Call to confirm availability and complete the
transaction.
Reviewing Suggested Orders
An additional responsibility in the parts ordering cycle is to review the
inventory management system’s suggested orders, as well as orders
generated by other methods.
6.3.2.2 Computergenerated orders are
always verified for
accuracy.
1. Edit suggested parts orders carefully. Computers do a great job
gathering vast amounts of data for further manipulation. Working
very fast, they also repeat mistakes if not caught in time.
 Make sure the order is authorized. If the request has not been
approved by the appropriate person, then check to ensure that there
is really a need for the part. Be prepared to give an estimated time of
delivery and cost, so you can assist the authorized person in making
an informed decision.
 Confirm the accuracy of the part number(s) with the latest
information available from GM Parts (see Figure 6.3.2-1). Check to
make sure you do not have it in stock. Your system may not give you
an accurate picture of your inventory of superseded parts. Often, a
replaced part can be used until stock is exhausted.
[Figure 6.3.2-1: Copy of GM parts master with part # & description]
2. General Motors Parts ships certain part numbers in unit packs or
minimum orders. For example, if Part ABC comes in a unit pack of
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12, and you order less than the quantity of 12, you will still receive
12.
 Compare the requested order quantity with GM’s minimum order
quantity and the number required to complete a job. If the order
quantity is less than the GM minimum, inform the inventory
manager and adjust the quantity to the minimum. (Otherwise, the
parts distribution center will send the minimum quantity anyway,
and your inventory system will have the wrong information until the
packing list is processed.)
 If the order quantity is not a multiple of the job quantity (the number
required for a normal repair), check with the individual requesting
the part to learn if there is a reason for ordering the odd quantity, or
get authorization to adjust the order.
3. Review backorders and orders in transit for possible duplication or to
upgrade the status of an order to receive the part more quickly. Most
automated inventory management systems will not duplicate
outstanding orders.
Selecting the Order Type
Whether the part is being ordered to replenish stock or to fill a customer
special order (CSO), the order type you choose is critical to your
customer, your dealership and GMSPO’s ability to ship parts on
time.
There are three basic GM order types that you may consider:
1. Daily Replenishment Order (DRO). This order type is for routine
restocking of parts. GM Part’s streamlining of its order system allows
you to order daily and receive your shipment as expeditiously as
possible.
2. Customer Special Order. The customer special order (CSO) should be
used when a customer requires a part that is not in your inventory
and not available locally. The CSO is not intended to be used as an
inventory replenishment order. Only parts needed to fill a customer
requirement are to be ordered using a CSO. The CSO-3 should be
used to order parts required for a customer whose vehicle is
inoperable and who needs the part the next day. The Saturday
delivery order (CS0-4) should be used for the customer whose vehicle
will be repaired over the weekend.
3. Qualified Promotion Order (QPO). From time to time dealerships may
want to participate in a special promotion offered by GM Parts. Such
promotions will include chemicals, accessories, Goodwrench exhaust,
Goodwrench engine truckloads and Goodwrench motor oil, to name a
few. Parts ordered on a qualified promotion order will receive
applicable marketing discounts, return reserves and advertising
allowance associated with the promotion.
The urgency of the parts request is a primary consideration in the order
type decision. The most urgent situation, a vehicle disassembled in a
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service stall in your dealership, calls for an immediate search for the part
from another GM dealership, or other local source of GM parts. You may
use the RAPID 2000 national locator to find the needed part at another
GM dealership.
Parts System Plus
Effective January 1, 1999, Parts System Plus (PSP) Order Entitlements
will allow Dealers the ability to choose from three entitlement packages
offering variable return reserve and discounts as follows:
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Parts System Plus Order Entitlement Options
Special Instruction
Return Reserve
Discount
Level
Code
Option 0
Option 3
Option 4
Blank
3
4
6%
9.75%
0%
3.75%
0%
8.25%
The above options are available on an order-by-order basis for all DRO
and CSO orders. All QPO and SPRINT shipments are excluded.
Identification of the order type option will be made through the use of a
special instruction code as shown above. Any number entered into the
special instruction code field other than a 3 or 4 will default to Option 0,
thereby earning the standard 6 percent Return Reserve and 3.75 percent
discount. Dealers are encouraged to correctly enter the desired
instruction code on each DRO and CSO order. No adjustments will be
made for orders with an incorrect special instruction code.
To be eligible to participate in Parts System Plus (options 3 and 4), you
must be enrolled by your GM Area Parts Manager. Enrollment is based
on the following criteria:

Dealers participating in Parts System Plus must have successfully
qualified for 10 of the prior 12 months' Customer Focus Incentive.

To participate in Option 4 (0 percent Return Reserve and 8.25 percent
discount) the Dealership must have demonstrated the ability to
effectively manage inventory obsolescence, utilization of order types,
and inventory turnover.

All Parts System Plus enrollment forms must be signed by the Dealer
Principal, Dealership parts manager, and GM Parts management.
GM Service Customer Special Order System
Here is the “12-step” system for handling special orders.
6.3.2.3 Any part needed
to satisfy a customer
should be obtained in
the most expeditious
manner. Refer to the
12-step GM Service
Customer Special
Order System.
notified when the part arrives.
1. The need to order a part is established. The
service consultant communicates to the
customer that his or her vehicle needs a part
that is not in stock and is not available locally.
The service consultant listens to the customer
to determine the situation. Any situations with
impact on safety or vehicle operability should
be handled as CSO-3 (overnight) orders. The
service consultant tells the customer that the
part will be ordered and that he or she will be
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2. The service consultant orders the part through the parts department. The parts
department and service consultant discuss the situation to determine the best
order type to use.
3. The parts department creates a special order card or updates the inventory
management system file to record customer information.
4. The parts department orders the part and updates the customer file with order
information.
5. The service consultant is notified via a special order card or an inventory
management system report that the part has been ordered (date and type of
order).
6. The part order information is tracked and the service consultant notified of
estimated delivery date.
7. The parts department continues to track the order and upgrades to a SPAC case
if necessary.
8. The part is received, the receipt is posted to the customer special order card or
inventory management system file, the bin section of the special order card is
attached to the part (or the customer file is updated with the bin location), and the
part is placed in a special order parts staging area.
9. The service consultant is advised of the part receipt and calls the customer the
same day to schedule an appointment.
10. The service consultant tells the parts department the customer appointment time.
11. The parts department posts appointment information to the customer file so the
part will be saved for that customer, in case another request is made for the part
before the original customer arrives. The part is placed in the appropriate bin
location.
12. If, after repeated attempts to get the customer to return, it is determined that the
special order customer will not pick up the part, the part should be returned within
thirty days of the shipment date to GMSPO.
Confirm Your Order Choice
 If the parts are on backorder from a parts distribution center, you
might wish to upgrade the order. You can upgrade the order using
RAPID 2000 transaction code “UPG”, TRACS 2000 or by calling the
GMSPO Customer Assistance Center (CAC) in Flint, Michigan. The
GM Parts organization is focused on the need to satisfy customer
expectations, and will assist in getting the parts to you as quickly as
possible.
 Check with the person requesting the parts to ensure agreement with
the order type selected. There may be special circumstances that you
are unaware of that require an upgrade of the order to Customer
Special Order (CSO), CSO-3 (overnight service) or CSO-4 (Saturday
delivery). If there is going to be a delay, make sure to notify the
service consultant who will consult with the customer.
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[Figure 6.3.2-2: General Motors Order Types]
Placing the Order
To have the parts shipped as quickly as possible, you need to select the
most appropriate ordering channel. To meet the needs of dealers and
customers, GM offers a number of alternative methods for ordering parts.
Which method is best depends on the urgency, order size and availability
of parts.
RAPID 2000
This system allows dealers to place orders electronically. Daily
Replenishment Orders (DRO), Customer Special Orders (CSO) and
Qualified Promotional Orders (QPO) may be placed via the GM RAPID
2000 computer system. If there is a problem with your order, such as a
wrong part number, or if the part is out of stock or backordered, you will
quickly be notified. You may check on the status of orders and
backorders, stocking locations of parts, and prices through RAPID 2000.
You may also upgrade or cancel a backordered item.
If you learn through an answerback message that a part has been
backordered, you may make use of the national locator. RAPID 2000’s
Locator allows you to search the inventory of other GM dealerships for
parts you need. You also have the capability to create a SPAC case
through RAPID 2000. This alerts the Customer Assistance Center to your
emergency need for a part.
TRACS 2000
TRACS 2000 is a touch tone phone system that supplements the RAPID
2000 computer system. You can place all types of orders through TRACS
2000, but you are limited to the size of the order. TRACS 2000 can only
handle 10 lines for any order you place.
Otherwise, TRACS 2000 allows you to perform the same functions as
RAPID 2000. You can place DROs, CSOs and QPOs, create and follow up
on SPAC cases, check on order status, parts pricing and availability, and
upgrade or cancel backorders. TRACS 2000 limits you to 15 transactions
per phone call.
TRACS 2000 is a valuable resource in checking on the feasibility of
obtaining a part overnight on a CSO-3. If due to its location a part cannot
be shipped overnight, you will be notified to order on a CSO. Orders
placed CSO-3 that are not available for overnight shipping will be
canceled, so it pays to check through TRACS 2000.
Customer Assistance Center
You may directly contact the GMSPO Customer Assistance Center to
upgrade a DRO backorder, or to place a CSO-3 that requires special
attention. The CAC will also be able to help you locate a needed part
through the SPRINT program if you have a SPAC case. For more
information on the SPRINT program, see the section on SPRINT in this
chapter.
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In the case of a computer-generated and transmitted order, the record of
the order is maintained in the computer system for reference and
tracking. When parts are ordered by other methods, including TRACS
2000, the transactions need to be entered manually into the inventory
management system.
 Enter order details into the manual inventory management system to
make sure that the full status of the ordered parts or accessories is
available for reference and tracking.
 Follow a fail-safe process to track every order, regardless of how it
was placed, to effectively manage the inventory.
Tracking Parts Order Status
Tracking activities begin as soon as the order is placed and continue until
the last part on the order is received.
1. Documenting an order is the first step of the tracking process. Unless
recording is done accurately and completely, all future results are in
question.
 As noted earlier, any order that is not generated by the system must
be entered into the inventory management system as soon as it is
placed. Take care to input all data required by the management
system and needed to document all order details. Become very
familiar with your own inventory management system’s ordering
procedures.
 Review the RAPID 2000 answerback message for any input errors. If
possible, correct any errors through the system or by calling CAC.
2. Once an order has been accepted, the next step is to reconcile it with
the inventory management system and to track its progress until
delivered to the customer.
 If an error that cannot be corrected was created during the order
input, the information in the inventory management system must be
updated to match the answerback. It may also be necessary to cancel
the erroneous order and place a new order for the correct
part/quantity. Keep associated department personnel (service, body
shop, new and used car) informed.
 Use the RAPID 2000 or TRACS 2000 to determine the status of
orders, backorders, stocking locations and parts prices. TRACS 2000
will allow you to check on up to 15 parts numbers.
 If a price change will materially affect the estimate made to the
customer, notify the service consultant so the customer can be
informed.
 If the parts are backordered, upgrading the order type may expedite
receipt of the needed parts.
 If a backordered part is for stock, a review of the safety stock, recent
demand and the estimated arrival date will allow you to make an
informed decision regarding upgrading the order.
 If the part is backordered on a CSO, you should upgrade the order to
a SPAC case.
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 Use RAPID 2000 or TRACS 2000 to review the shipping details of a
parts order. Consider whether any of the shipments need to be
expedited.
Updating the Inventory Management System
Many decisions in the dealership are made day in and day out based on
the information contained in the inventory management system. The
integrity of this data is crucial. Usually only the inventory management
specialist and parts manager are allowed to make status changes or
corrections. This should ensure the accuracy of the data.
The point to remember is that the inventory management system should
reflect the complete status of an order at all times until the parts are
received. The status changes and any action taken should be entered into
the inventory management system promptly.
Even if special corrective action is not required, there are various
fulfillment stages between placing an order and closing it out as
completely received. All of these stages need to be recorded in the
inventory management system.
 The order confirmation needs to be reconciled with the original order
and the inventory management system updated to reflect any
changes.
 Order status changes need to be entered into the file to reflect the
latest information received from the supplier.
 Any price changes should be entered into the master inventory file.
 After order acceptance, changes in part number (supersessions) or
quantities shipped should be noted, reviewed for their effect on
customer service and entered into the parts inventory management
system.
 When all lines of the order have been received, the order should be
closed out.
SPRINT
Through the SPRINT program, GM Parts matches up dealers who need
parts with those who want to sell them. GM has recently upgraded the
SPRINT program to include AUTOSPRINT and AUTOSPRINT II,
programs that make it easier for buyer-seller matches to be made.
Dealers who need a hard-to-find part and have not found it through the
RAPID 2000 National Locator or other sources may create a SPAC case
via RAPID or TRACS 2000. This alerts the Customer Assistance Center
(CAC) to place the part on the SPRINT list. Dealers may obtain the list of
needed parts either through RAPID or TRACS. If they have a part in
inventory and want to sell it, the connection can be made via SPRINT.
AUTOSPRINT, introduced in 1995, allows dealers to input SPRINT
responses via TRACS 2000 in addition to RAPID 2000. AUTOSPRINT II,
the newest upgrade of the system, automatically compares dealer
6.3.2.4 Original
order information
and any changes are
recorded in the
inventory
management system.
6.3.2.5 A fail-safe
process to track
every order is
established and
followed.
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inventory information in the RAPID 2000 locator with the SPRINT’s
requirements list.
Dealers who participate in the SPRINT program should be aware of the
following:
• Parts sold through SPRINT must be unused and undamaged.
• Ship-direct parts are not included in the AUTOSPRINT program.
Available ship-direct parts should be entered on TRACS 2000. They
will be reviewed and sprinted manually.
• Questions about parts number changes should be directed to the CAC
or Parts Technical Information (Partech), which can be reached on
TRACS 2000. Please send only the part number that is requested.
• Special order parts should not be entered on TRACS 2000. Enter only
part numbers that you have available to sell.
SPRINT dealers receive credit from GMSPO for the wholesale price of the
part. Due to the high cost of SPRINT shipments, dealers may receive no
more than $100 over the dealer cost. This cap affects very few cases
because the difference between the dealer cost and the wholesale price is
seldom more than $100.
A SPRINT Help Card with information about how to use the system has
been distributed to dealers. Following is more information about SPRINT,
AUTOSPRINT and AUTOSPRINT II.
AUTOSPRINT
You may use either TRACS 2000 or RAPID 2000 to obtain the SPRINT
requirements list. To use TRACS 2000, enter your dealer code and
password, speed dial 142 and the list will be faxed to you.
You may access the requirements list on the RAPID 2000 Bulletin Board
System. Select Main Menu Option 4, the SPO Forum, then select Option
1, the SPRINT Requirements List. You can also go directly to the list by
entering *SPRINT.
After you match the list to your inventory, call TRACS 2000 to enter the
part numbers you want to sell to SPRINT (speed dial 141). At this point,
verify your fax number.
After entering each part number and quantity, you will be advised if
there is an open SPAC case. If there are no open SPAC cases, the part
number and quantity will be added to the SPRINT file under your dealer
code. If an order is entered into the system after your initial call, you will
receive an answerback over RAPID 2000 asking if the part is still
available to be SPRINTed. If you still have the part, you can call back into
TRACS and reenter the part number.
If there is an open SPAC case, a copy of the order will be faxed to you via
the fax number that you entered over TRACS 2000.
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AUTOSPRINT II
AUTOSPRINT II, a feature of RAPID 2000, complements AUTOSPRINT
by automatically doing a daily comparison of dealers’ parts loaded to the
locator and the SPRINT requirements list. An answerback that indicates
a match of parts on the SPRINT list with any a dealer has in stock will be
sent to the dealer immediately.
If the part is still available for sale to GM, the dealer may respond via
RAPID 2000 SPA (SPRINT Part Available) transaction or by using
TRACS 2000.
Answerbacks for a specific part number will first be sent when a part
your dealership shows in stock is added to the SPRINT list. It will not be
shown on answerback again unless:
• The part number was removed and added back to the SPRINT list, or
• The part has been on the SPRINT list for 30 days and your dealership
still shows it in inventory.
SPRINT Shipping
A 3:30 p.m. cut-off time for SPRINT shipments has been established in
each time zone. After that time, the system will advise the receiving
dealer that the part will ship the next day. If you can still ship the part
that day, please do. The cut-off time is set to acknowledge that in many
areas carriers do not pick up late in the day.
For all SPRINT shipments, you should:
• Include a copy of the invoice with the note “packing slip only.” If it is
a drop shipment, the shipping label requires the note “SPAC case” to
help the dealer identify the SPRINT shipment.
• Make sure the “ship-to” not the “charge-to” address appears on the
outside of the SPRINT package. This will prevent CAC from receiving
SPRINT shipments in error.
[Figure 6.3.2-3: The SPRINT/AutoSPRINT process]
Hazardous Parts
Hazardous parts must be shipped by United Parcel Service (UPS) ground.
Fax a copy of UPS bill to SPRINT with the SPAC case number referenced
on the bill. (Call CAC for details.)
Domestic Shipments
For SPRINT shipments in the U.S., use Federal Express:
1. For pickup and Federal Express tags, call 800-238-5355.
2. Check third party billing box and use account number 1652-4492-3.
3. Be sure to include SPAC case number and VIP number for the
internal billing reference.
4. Ship standard overnight for weekday delivery.
5. Be sure to include a packing slip for the receiving dealer.
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Oversize/Overweight Items
For SPRINT shipment of heavy items when specified by SPRINT agent,
use Emery Air Freight:
1. For pickup call 800-826-9310.
2. Check third party billing using account number 542-531-413.
3. Put SPAC case number and VIP number in remarks section of Emery
ticket.
4. Ship standard overnight for weekday delivery.
5. Be sure to include a packing slip for the receiving dealer.
Canadian Dealer SPRINT Shipments
Canadian dealer codes begin with a zero. For SPRINT shipments to
Canada, always use Emery (do not ship Federal Express). Ship to:
GM of Canada
Dealer Shipments
1401 Parkinson Road
Woodstock, Ontario, Canada N4S8K8.
1. For pickup call 800-654-7378
2. Check Emery collect using account number 8501-78-369.
3. Put SPAC case number and VIP number in remarks section of Emery
ticket.
4. Include packing slip with SPAC case number and VIP number.
5. Dealer code of the recipient must be noted on outside of box.
GM Benefits
The GM Parts System recently simplified its discount and return reserve
structure so that you may now order parts daily instead of waiting up to a
week for a more favorable order type.
DROs and all types of CSOs are eligible for the GM Purchase Allowance
(discount) and Return Reserve. Purchase of certain parts earn an
advertising allowance under the Advertising Assistance Program.
Here is how the programs work:
Purchase Allowance
An allowance of 3.75% of dealer price is given on most orders placed with
GM Parts. Exceptions are chemicals, oil, accessories, exhaust parts and
other specific items spelled out in the Qualified Promotion Kit. Those
items may be offered to you at varying purchase allowances depending on
the particular promotional program.
Return Reserve
The dealership earns a 6% return reserve on all orders with just three
exceptions: Delco radios, AC Delco remanufactured engines and truckload sheet metal. For example, if you buy $100,000 in qualified parts
annually, you can return up to $6,000 in unwanted or slow-moving parts
and receive credit (dealer price less any applicable purchase allowances).
More detail about return reserve accounting can be found on page 11.
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Advertising Assistance
The purchase of items identified as Goodwrench Service Merchandising
Parts earns a 4% advertising allowance. Dealers who participate in the
Goodwrench Service Plus program earn a 7% advertising allowance. GM
will reimburse the dealership for a percentage of its expense in
advertising GM parts and service, up to $2,000. Additional advertising
reimbursement is available for certain purchases made by GM
Goodwrench Quick Lube Plus dealerships. For more details, please refer
to Merchandising in the GM Parts and Accessories Dealer Policies and
Procedures Manual.
GM Incentives
Customer Focus Incentive
Dealerships that meet certain criteria for customer service are eligible for
the Customer Focus Incentive paid monthly as a credit to their open
account.
The criteria for the 2% Customer Focus Incentive is as follows:
1. Dealer will update the RAPID 2000 locator a minimum of one time
each month
2. Dealer will track total GM Parts inventory and GM Parts inventory
inactivity with 12 or more months no sale via an automated inventory
control system and report both figures by the last day of each month via
the RAPID 2000 bulletin board system.
3. Dealer will measure (for a minimum of one week) and report repair
order fill information by the last day of each month via the RAPID
bulletin board system. Dealer agrees to maintain the RO Fill Logs and/or
tracking information for 12 months.
4. Dealer will stock, and update to the locator, a minimum of 90% of the
parts from the applicable Recommended Stocking Guide.
5. Dealer will complete, sign and adhere to the GM Parts Customer
Special Order Process commitment.
Dealerships meeting all five CFI requirements (on a pass or fail basis) for
a given month will receive the cable 2% credit during the third week of
the following month. (See Information Bulletin #98-111).
The Customer Focus Incentive criteria are subject to change periodically.
Dealers will receive advance notification of changes via Information
Bulletins when they are due to occur.
Part Number Stocking Incentive
The goal of the GM Parts System is to enhance the vehicle ownership
experience through expanded parts availability at the dealer level. To
encourage dealers to increase the breadth of parts inventory, the system
includes a Part Number Stocking Incentive (PNSI).
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The average number of GM part numbers stocked will be calculated by
obtaining the GM part number count from each Dealer’s RAPID 2000
locator file at then end of each month in which a Dealer locator file
update occurs. Each Dealer’s RAPID 2000 locator file will be matched
against the GM Parts master tape and the Dealer will receive stocking
credit for the current GM part numbers with an on-hand quantity of one
or greater. Parts with an Alpha Warehouse Class code of "F" will be
excluded from Dealer’s part number total. If the RAPID 2000 locator file
is not updated during any month, the part number count for that month
will be "0".
Monthly PNSI credits will only be available to those Dealers that have
successfully attained their Customer Focus Incentive (CFI) for the
current month. For those Dealers that either choose not to request their
monthly PNSI or fail to qualify for CFI, the current PNSI payment
program remains in effect.
Application for monthly PNSI will take place via the RAPID 2000
Bulletin
Board System as of January 1999.
For more detailed information, please refer to GM Parts Information
Bulleting #98-310 dated October 23, 1998. See Figure 4 for a listing of
PNSI levels.
Figure 4: Part Number Stocking
Incentive Table
This is the end of this section. To access another section, click on a button
below. To go to another chapter, click on the appropriate tab above.
[Figure 6.3.2-4: Part number stocking incentive table]
(Include an example here for a “10%” dealer.)
Returning Parts
This section will cover the GM policies and procedures related to selling
parts and accessories back to GM as well as information about the core
exchange program. Details about the Return Reserve program are also
included.
Selling Parts Back to GM
If we were living in a perfect world, parts returns would never be
necessary. Unfortunately, there is no crystal ball to tell you exactly what
to stock and who will buy it.
To address changing market conditions and assist dealers in maintaining
a viable parts inventory, GM Parts offers a very comprehensive material
return plan. Categories include:
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




Monthly returns
Miscellaneous returns
Eligible accessories returns
Exhaust return
Core exchange.
Monthly Return Plan
Under the Monthly Return Plan virtually all line items except factory
source and ship-direct parts are classified as returnable. They must
appear in the current price schedule and be identified by the return code
“R.” (See Figure 6.3.2-5 for details.) There is no minimum dollar
requirement.
[Figure 6.3.2-5: GM Dealer Parts & Accessories Price Schedule]
 To ascertain general return eligibility, find the part number of the
item to be returned and look under the column marked “RET”. If
there is an “R” in this column, the part is returnable. The applicable
credit to the dealership can be found on the same line under “Dealer
Price,” less any applicable purchase allowances.
 Superseded parts are eligible for return for twelve months after
supersession. In this case, there is no need to confirm return
eligibility through the “R” on the price schedule, as long as the return
is requested within twelve months of the supersession.
 Returned parts must meet packaging standards and unit
merchandising pack requirements. Packaging must be in good
condition when shipments are received at the Parts Distribution
Center (PDC) for return. See Figure 6.3.2-6 for a listing of the
standards.
 Parts that do not meet packaging standards may be returned and, if
accepted, will be repackaged for a fee to the dealer. Parts and
accessories returned under the Repackaging Program must be in
saleable condition. For more details, see the Dealer Parts and
Accessories Policy and Procedures Manual.
[Figure 6.3.2-6: GM Parts Packaging Quality Standards]
 An application may be submitted to return eligible parts and
accessories once per month. Applications may be submitted using
RAPID 2000 (for RAPID dealers) and Form PC659 (for non-RAPID
dealers).
 If submitting your application over RAPID 2000, use the “MRP”
transaction code and a seven digit number taken from a PC659 as the
Dealer Control Number. Refer to the RAPID Operator’s Instruction
Manual for assistance. For a sample of form PC659 see Figure 6.3.2-7,
Application for Authorization to Return Material.
[Figure 6.3.2-7: Application for authorization to return material (PC659)]
Completed PC659 applications should be mailed to the local PDC,
supported by a Return Material Receipt Form PC302.
16
Miscellaneous Returns
Miscellaneous returns are those returns that a dealer makes only
occasionally to accommodate special circumstances. These return
categories are:








Special order
Parts and accessories shipped in error
Defective parts and accessories
Concealed damage, not carrier responsibility
Campaigns
Dealer termination
Items unitized incorrectly
Container damage.
All miscellaneous returns are requested by submitting a PC659 return
through RAPID 2000. With the PC659 you are notifying the PDC of your
intention to return items and get credit for them. Figure 6.3.2-8 provides
the information to be included in the various fields of the PC659.
[Figure 6.3.2-8: PC659, Miscellaneous returns on RAPID 2000 (Copy of
PC659 Miscellaneous 2-49)]
[Figure 6.3.2-9: List of return classifications, RAPID 2000 transaction
codes and paper form numbers]
Special Order Returns
In the event that a customer does not pick up a mechanical service part
that was ordered as a CSO or CSO-3 or 4, the dealership may return the
parts without a charge against its return reserve. The 6% return reserve
credit earned with the purchase will be deducted however.
To return a special order part, you must file a PC 659 within 30 days of
shipment date. There is no minimum dollar value. Packaging standards
and merchandise pack quantities apply.
Mechanical service repair parts and seat belts are eligible for special
order return.
Parts and Accessories Shipped in Error
Undamaged and unused items may be returned under this category
when:
 Another dealer may have used your dealer code by mistake so the
order was shipped to you in error
 The catalog or order form referred to the wrong part number
 An error was made in the dealer code or part number by a GM
representative
Parts you receive in error may be returned for full credit and will not be
charged against your return reserve.
Defective Parts and Accessories
Defective parts are defined as parts with a flaw that impedes the
installation of the part or the normal function of the vehicle. Parts and
17
accessories found to be defective prior to bench testing, installing or
GMSPO notification should be listed on a PC659 form accompanied by a
packing slip. If found defective after bench testing or installation, these
parts should be submitted for warranty reimbursement on a vehicle
division parts replacement claim.
Your parts account credit for defective parts and accessories will be the
current dealer price, plus 40% and transportation charges for return. The
6% credit earned with the purchase will be deducted from your return
reserve account.
Concealed Damage
This category is for return of items with damage discovered after delivery
and for which no claim is made against the carrier. Concealed damage
should be reported to the dealer’s local Parts Distribution Center. A
PC659 form, including a full description of the shipment, must be
submitted. Return reserve is reduced by the 6% earned with the
purchase.
Campaign Parts
Parts sent to you automatically for campaigns and which are no longer
needed are returnable. You must obtain prior authorization by filling out
a PC659 (paper form mandatory) as shown in Figure 7. List the campaign
number and MR Reason Code 12 in the “Comments” section and submit
the form by mail to your local PDC for approval.
Dealer Termination
One termination return listing may be honored per dealer termination.
To process a material return, submit a PC659 form either through RAPID
2000 or manually. Termination returns must be submitted within 60 days
of the expiration of the Dealer Sales and Service Agreement.
Incorrect Unitization
Shipments may be returned if the parts have been packaged incorrectly.
This category applies if the package contains the wrong quantity, the box
is empty, the package contains the wrong part or if pieces are missing.
Your return reserve account will be reduced by the amount earned at
purchase.
Container Damage
Parts received in a damaged package or container qualify for return
under this category. Damage might include: illegible part number,
crushed sides of package, opened kits, opened fluid, opened cohesive
containers, opened sealed electrical parts, opened blister on film packs,
and general poor or dirty appearance. Return reserve will not be affected
except that the amount earned at purchase will be deducted.
Accessory Return Program
The Accessory Return Program allows dealers to return eligible
accessories directly to suppliers. With recent changes, 2,700 more part
numbers are eligible for return in this program. For this type of return,
credit will be issued and your return reserve account will be charged.
18
 To request authorization to return eligible accessories, complete an
Accessory Return Form and return it to the SPO Customer Assistance
Center (CAC). Figure 10 shows the sample form including the fax
number and address.
 The Customer Assistance Center will assign an authorization number
and Accessory Return Authorization Form for each product line. SPO
will fax the authorization forms, which include shipping information,
to the dealership within five days. Use the forms as packing slips and
return the accessories directly to the supplier. Your dealership is
responsible for prepaying the return freight.
 Returned accessories must be in their original unopened packaging
with any applicable factory seals in place and in acceptable condition
as outlined in the GM Parts Packaging Quality Standards in Section
IV of the GM Dealer Policy and Procedures Manual. Accessories
received in nonreturnable condition or in quantities in excess of the
approved amount will be returned to the dealership freight collect.
 Do not send approved accessory returns to your administrative PDC.
Accessory returns received by the PDC will be returned to the
dealership freight collect.
 The supplier will validate receipt of the items in saleable condition
and inform the CAC.
 Material received by the supplier in nonreturnable condition may be
either returned to the dealership or scrapped by the supplier, at the
dealer’s discretion. This material scrap option should not be confused
with the “scrap in the field” provision, which applies to material
designated by GMSPO on the affidavit form.
 Dealerships have 30 days from the authorization date to return
eligible accessories to the suppliers. Return applications will be void
31 days after the authorization date. Accessories received at the
suppliers after that date will be returned to the dealership freight
collect.
 The dealer should allow 30 days from the date suppliers receive the
material for credit to be issued. Credit will be issued at the dealer
price, less maximum applicable discounts. If credit is not received
within 30 days of suppliers’ receipt of product, the dealer should fax a
proof of delivery to the CAC for follow-up.
Figure 10: Accessories Return Form
Accessories Scrap Program
A separate Dealer Scrap Affidavit, detailing the accessories to be fieldscrapped, will be sent to the dealer along with the return authorization
form. In that affidavit, the dealer declares that the items are new and
undamaged and that they will be made unsaleable and retained for
inspection for at least 15 days after credit is issued.
If any items identified for scrapping have been sold, the quantity should
be adjusted on the form and the changes initialed. The dealer then faxes
the affidavit back to SPO for credit issuance.
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GM Goodwrench Exhaust Program
Dealers may submit a Goodwrench Exhaust Return Request Form to the
Customer Assistance Center (CAC) one time a year, anytime during the
calendar year. Monthly time constraints, as well as offsetting orders on
returns, have been eliminated.
Returns will be credited at dealer price less all applicable discounts (10%
purchase allowance) and a 10% handling charge. The return will be
charged at full value against the dealer’s return reserve.
To return exhaust parts:
 Complete the Goodwrench Return Request Form and fax or mail the
request to:
GMSPO CUSTOMER ASSISTANCE CENTER
MC#485-541-470
6060 W. Bristol Rd., Flint, MI 48554
FAX:(810) 635-5127
 Wait for authorization from the CAC. The return request form with
an authorization number will be returned to you by fax.
 Make sure the merchandise is in saleable condition and packaged
according to SPO packaging standards. Enclose a copy of the return
request form with each shipping container.
 Ship freight prepaid. Collect shipments will be returned to the
dealer. Ship to:
KEM KREST CORPORATION
1919 Superior St.
Elkhart, IN 46515
 Do not ship Goodwrench Exhaust parts to your local PDC or Walker
Manufacturing.
 Parts received by Kem Krest in a nonreturnable condition, parts not
approved for return or in quantities in excess of the approved amount
will either be scrapped or returned to the dealership freight collect.
See Information Bulletins 97-163 and 98-133 for more details on the
Goodwrench Exhaust return process.
Core Exchange Program
This topic deserves strong emphasis since the exchange program can only
operate effectively and economically if the cores are returned to GM as
quickly as possible and sent to the remanufacturer. For additional
information on the Exchange Program, you may also refer to your GM
Dealer Parts and Accessories Policy and Procedures Manual.
When returning cores under the parts exchange program, a dealer will
prepare a RAPID 2000 application using the “EXC” transaction code.
These “EXC” applications will be processed daily. Dealers can find out
whether or not a part number has a core value by consulting the GM
Parts Price Schedule. Any exchange parts will have “EXCH” noted by
their listing.
20
[Copy of Price Schedule with “EXCH …. Highlighted]
[Figure 6.2.3-11: Exchange part listing]
1. GM Goodwrench engine, transmission and torque converter cores will
be authorized immediately, generating a RAPID answerback. Before
shipment, you must tag each engine with an engine core tag and each
transmission with a failure information tag. Returns must also
include a copy of the appropriate RAPID 2000 answerback which
should be included as a packing slip. These cores should be returned
daily to your assigned PDC.
AC Delco transmission core returns must be documented with two
copies of the Rapid 2000 Instant on-line application and the AC Delco
transmission core tag (P/N 12367805), completely filled out. The
completed core tag and one application copy should be placed in the
two clear packing slip envelopes provided with the replacement unit
and attached to the outside of the plastic transmission packaging. The
other Rapid 2000 application copy should be attached to your PC302
or bill of lading.
2. ALL OTHER CORES will be listed on a separate RAPID answerback
advising the dealer to store this material until the corresponding
paperwork arrives. The PDC will then generate and forward a PC78
disposition listing, PC368 tags, shipping labels and a control break
form. Each core is to be tagged with a PC368 tag, and the shipment
must include the PC78, which can be included as a packing slip.
Shipping labels should also be affixed to each separate freight piece.
These cores are then to be shipped to the National Return Center in
Wayne, Michigan, via the Carrier Interline Facility (“CIF”) as
directed by Schneider Logistics (see below). Although return of these
cores cannot occur until the arrival of the proper paperwork,
applications for return should be sent daily.
3. Electronic Control Modules (ECMs) follow the above procedure,
except that they must also include a dealer core information tag (No.
1224668), which supplies diagnostic failure data. To be eligible for
return, ECMs must also meet the following requirements: 1) The unit
must not be disassembled; 2) It must not have been remanufactured
by a source not authorized by GM; 3) It must not have evidence of
fluid damage; 4) It must be in the replacement unit carton; and
5) Delco Electronics labels must be affixed to the unit.
4. When exchange items are ready for return in LTL (Less Than
Truckload) quantities, set them aside for pickup by your direct dealer
shipping (DDS) carrier or you may arrange for pickup by the nearest
Carrier Interline Facility (CIF) carrier by calling 1-800-541-2882. For
those dealers using non-DDS LTL carriers, all material is to be
shipped via third party billing. Bill of lading should specify “prepaid”
in terms section. In the body, however, the following notation should
be included:
Attention:
Carrier, Third Party Billing to SPO,
21
c/o Schneider Logistics
P.O. Box 2555,
Green Bay, Wisconsin 564306-2666
5. Cores should be returned to the dealer’s assigned Parts Distribution
Center daily. These applications covering parts returned under the
Exchange Program require prior approval. Exchange returns are not
to be submitted on the same PC659 with other types of return
material. Pack cores carefully for safe shipment, using the No. 1 copy
of the PC78F or the RAPID 2000 answerback as a packing slip.
6. All cores must be returned in the replacement unit carton for credit
to be issued. Also, some core parts include graphics that display a core
identification block. Customers must supply their dealer code
(handwritten or sticker) to these products.
7. Upon receipt and acceptance of the material at the PDC or source, a
credit invoice will be issued and the total amount will be listed on the
PC792, Summary of Parts and Accessories Transactions. Exchange
returns should be shipped freight-collect by dealers who are not
assigned to a dedicated delivery route.
[Answerback sample - page 66 of operator’s manual]
Figure 6.3.2-12: Exchange answerback
[Copy of completed MRA]
[Figure 6.3.2-13: Material return authorization]
[Copy of completed material return tag PC368]
[Figure 6.3.2-14: Material return tag]
Return Reserve Account
As mentioned previously, dealerships accumulate return reserve equal to
6% of their parts purchase. When parts are returned, the return reserve
account is diminished by the value of the returned items.
For example, if you purchased $10,000 in eligible parts and accessories
from GM, you would be able to return $600 worth of items during the
year.
Each month, the dealership return reserve balance will be reduced at the
rate of 100% of the value of the parts returned, less applicable discounts.
The price of the part at the time of the return will apply.
It is important for you to keep track of your return reserve balance so
that you will know when your credit is running out. You should be aware
of the balance so that when you return items you will not exceed your
reserve. As of March 1, 1996, you cannot exceed your gross return
reserve.
22
If the value of returned parts exceeds the balance in your return reserve,
the system automatically deletes parts beginning at the point on the
application where you exceed your accumulated return reserve.
Therefore, if you are coming close to zeroing out of your return reserve,
you should take care to put your part numbers in priority order. The
parts you really want to return should be at the top of the list, and those
you can afford to keep for a while longer are listed last.
Under GM’s Part Number Stocking Incentive, you may receive a
percentage refund if your returns do not use up your reserve credit. (See
section titled “Part Number Stocking
Incentive” and Figure 6.3.2-4 for
6.3.2.6 Annual return
details.)
reserve is maintained at
about 25% of inventory
value according to
automotive industry
recommendations.
You should try to maintain a return
reserve of about 25% of your inventory
value, which is the automotive
industry standard for inventory
protection. To find out your return reserve balance you can use the
following sources:
 On the second page of the Parts Activity Summary, PD792, under the
heading “Return Reserve Activity Summary,” you will see the dollar
value of the reserve you have accrued, the value of the parts that
have been returned and the balance of the reserve that is still
available. (See Figure 6.3.2-15.)
[Copy of both pages PD792]
[Figure 6.3.2-15: Return reserve activity summary]
 The reserve account balance at the time of the application is provided
to the dealership on the Material Return Authorization Form PC78F.
(See Figure 6.3.2-13)
 For an immediate answer, you can find how your return reserve
balance stands by placing an inquiry through RAPID 2000. Use
transaction code “MRB,” which stands for Material Return Balance,
in order to get an answerback with your up-to-date return reserve
balance.
Return reserves are earned from January 1 through December 31, based
on the parts purchases made during the year. You can make application
for return against these reserves from March 1 of one year to February 28
of the following year. To keep the inventory clean, returns should be
submitted every month.
GM has adopted these policies and procedures to make it as easy as
possible for you to obtain the parts and accessories you need to satisfy
your customers. By making the most efficient use of these programs, you
should find it both practical and profitable to maintain a well-stocked and
responsive parts inventory.
23
Resources
Please refer to Chapter 6.3.1, Inventory Management, for information
about resources that support the full range of inventory management
tasks. Specialized resources that support parts ordering alone are
summarized in the following sections.
People
Most of the activities covered in this chapter consist of planning and
monitoring, so they are the responsibility of parts management team
members. Some of the tasks, such as reconciling answerbacks or updating
customer order and parts files, may be delegated to other parts
department employees. In all but the smallest dealership, an assistant
parts manager may assist with the planning activities and take
responsibility for certain tasks such as determining the need to upgrade
specific orders and communicating status changes to the service
management team.
Facilities
Parts ordering is only one element of the parts inventory management
function, so the space required is shared with the other inventory
management tasks.
Equipment and Materials
Refer to the Resources section of Chapter 6.3.1, Inventory Management,
for a summary of equipment and materials resources that apply to parts
ordering and returns functions.
Information
Refer to the Resources section of Chapter 6.3.1, Inventory Management,
for a summary of information resources that apply to parts ordering and
returns functions.
The following references are frequently used in the parts ordering and
returns functions:




GM Dealer Parts and Accessories Policy and Procedure Manual
Reference manuals for the dealership inventory management system
Current part numbers and descriptions
System-generated reports of parts on order and in transit.
Computer Support
Refer to “Resources” of Chapter 6.3.1, Inventory Management, for a
summary of computer resources that apply to parts ordering and returns
functions.