Professional Development Meeting-North

Evening Topic :Plant Tour, Mobis Parts America (Hyundai)
 

Speaker : Ronald M. Palochko

Plant Tour Location: Hyundai Parts & Distribution Center
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Dinner Meeting Location: Crowne Plaza Hotel, Monroe, NJ

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Date : 03/24/10

Registration at Hyundai Distribution Center: 3:30 PM
Tour Begins: 4:00 PM
Reception at Restaurant: 5:30 PM
Dinner Meeting: 6:00 PM

Cost includes dinner:

• $45 Member and Non-Member

Payment methods:

We accept PayPal, checks (payable to APICS-PRSJ) or cash at door.

Pre-registration helps keep our cost down. Walk-ins are always accepted.

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Mobis Parts America (Hyundai)

Mobis Parts America (MPA), launched on January 1, 2009, has begun the challenging 2-year task of combining the Hyundai and Kia operations into one customer service focused and efficient operating company. Systems strategies are being developed to integrate both companies into a single state of the art system. Parts Distribution Centers will become Hyundai/Kia facilities, allowing MPA to position facilities closer to their customers increasing current service levels at a significantly reduced cost.

Increasing service and reducing costs are the primary goals in combing Inventory Control, Parts Training and the Parts Technical Call Centers. A key business opportunity is in Parts Marketing. By leveraging the strength of both companies and utilizing common market intelligence, design and execution resources, MPA will add real Market Value for the manufacturer and dealer for both retail customers and wholesale business. As a result of the dramatic increases in sales for both Hyundai and Kia products, the Hyundai/Kia parts market has become extremely competitive and MPA is now positioned to win Customer loyalty.

Having concluded the move into their new facility in August ‘08, MPA has realized a dramatic increase in storage capacity of fixed location capacity from 42K slots to 74K slots (+76%) ensuring our commitment to growth and operating efficiency. Although the new facility footprint is only marginally larger the increased operational height allows MPA to maximize the cube and achieve a 4A7% storage advantage. Additionally, energy efficient lighting and natural lighting provided by perimeter windows improve processing accuracy and provides a brighter and more open environment.

This facility provides service to 204 Hyundai Dealerships located in 13 states in the Northeast. Processing in excess of 1.7 million order lines annually, while maintaining a world class accuracy rate 99.92% (1 error for 1250 lines processed). Hyundai has been recognized by Industry analysts as a leader in Fill Rates, measuring over 98%, PDC Productivity and overall Supply Chain Efficiency.

Tour Highlights:

• A 320K square foot of warehouse and distribution operations.
• A state of the art Technical Training Center for Dealership Technicians
• Utilization of in house slotting tools, providing optimal storage of over 33K unique part numbers
• A transportation system that provides delivery service to 203 dealerships by noon the following day with 60% of dealerships ordering parts prior to 3PM receiving deliveries prior to their opening the following morning

People are truly their most valuable asset that sets MPA apart from the rest. Processors are routinely flown to other facilities in the network to work, learn and share best practices, resulting in a unique camaraderie within the collective group. In addition to experiences at the other facilities, many of their Processors have visited their US Headquarters and Korean Operations both in Seoul and Ulsan to learn about the company and the Korean culture which is their foundation.

Unlike most PDC’s in the Service Parts Aftermarket, Hyundai takes a somewhat different approach in compensation, paying for performance opposed to contractually negotiated or predetermined increases, reinforced by incentives that provide monetary reward for meeting and exceeding performance goals.

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Ronald M. Palochko

MPA is truly excited to share their story and hope you can join us on March 24 for an exciting tour and presentation by Ronald M. Palochko, MPA National Manager Parts Distribution Center, as he tells us “The rest of the story…”

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