Highlights from the Dec Dealership Insights Forum: 2024 RECT Review

The December Dealership Insights Forum was an engaging session where dealers reflected on the challenges and wins of Repair Event Cycle Time (RECT) throughout 2024 and shared actionable solutions for improvement. The discussion was led by Don Miller, Data Consultant at IDS and Tim Peters, Controller and former Service Manager at Arrkann Trailer & RV Centre.

Here are the highlights:

Introduction to Repair Event Cycle Time (RECT) Trends

Don Miller set the stage with a comprehensive overview of RECT data from 2018 to 2024, providing context for current challenges and progress.

• Pre-pandemic averages (2018-2019): 26 days.
• Pandemic peak (2022): 41 days.
• 2023: 37 days.
• 2024 year-to-date: 34 days, showing a slow return to pre-pandemic norms.

Don Miller: “Good news is we’re seeing an improving trend. But we’re still not quite back to those 2018-2019 levels.”

Tim Peters: “Back when I was a service manager, RECT wasn’t as complex as it is today. We’re navigating a whole new set of challenges.”

Main Bottlenecks: Warranty and Out-of-Stock Parts

1. Warranty Coverage Delays

Warranty-related work orders experienced delays that peaked at 57 days in 2022 but improved to 50 days in 2024.

Don Miller: “Meaning we’re at least getting the coaches in and getting started on quicker. One of the things leading to that is we have seen some improved shipping times from the main top ten vendors, where they’ve actually improved their shipping times to better than they were pre-pandemic. So, we’ve seen some good improvements there.”

Tim Peters: “The longer it takes to get parts approved and delivered, the harder it is to get the customer back in. They might deprioritize the repair entirely.”

Another attendee added: “We’ve noticed manufacturers increasingly demand photos and documentation before approvals, adding to the wait times.”

2. Out-of-Stock Parts Challenges

Out-of-stock parts remain a persistent challenge.

• 2018-2019: 52-day average.
• 2022 peak: 88 days.
• 2024: Improved to 62 days.

One attendee highlighted the shifting dynamics: “Manufacturers are forcing us to order directly from them instead of suppliers. This doubles lead times in many cases.”

Regional Trends: Canada vs. USA

Canadian dealerships outperformed their U.S. counterparts during the summer months of 2024, with RECT averages occasionally dipping below U.S. levels for the first time.

Don Miller: “Canadian dealerships saw fewer out-of-stock part delays—just 23% in November versus 31% in the U.S.”

Tim Peters: “In Canada, the winter months see longer cycle times as customers bring in units for major repairs. But during summer, we’re right in line with U.S. averages.”

Emerging Trends in RECT

1. Increasing Job Days

The average job days increased from 11 in 2018 to 21 in 2024.

Tim Peters: “We’ve added a 10-point inspection for every unit to uncover more repair opportunities. While this generates revenue, it extends RECT timelines.”

One attendee shared: “We’re seeing more incorrect or damaged parts arriving, requiring reorders and causing further delays.”

2. Warranty Authorization Delays

One attendee shared: “We don’t order parts for warranty jobs until we receive authorization. This process varies by manufacturer, with some being significantly slower than others.”

Innovative Solutions and Best Practices

1. Automation and Internal Tools

Tim Peters: “We’ve implemented PowerApps to manage estimates and parts ordering. This minimizes delays between departments. Additionally, we use dashboards to track unit status, ensuring everyone knows whether a trailer is on-site or off-site.”

2. Data-Driven Improvements

Don Miller: “Your data is a goldmine. Use it to identify bottlenecks and improve procedures. Even small tweaks can make a big difference.”

Looking Ahead

Don Miller: “Shipping times and lead time days are improving. If this trend continues, 2025 could see RECT levels closer to where they were pre-pandemic.”

Tim Peters: “It’s all about adapting. Whether it’s through inspections, automation, or better communication, every improvement counts.”

The next Dealership Insights Forum will take place on Friday, January 24 at 11:30 AM EST/8:30 AM PST, and will focus on strengthening relationships with OEMs. You can register for the forum here.