Dan Sobic, executive vice president of Paccar Inc. said a recovering truck market will demand the highest levels of quality and cooperation from vehicle and supplier manufacturers, in an opening presentation at the inaugural Commercial Vehicle Outlook Conference at the Great American Trucking Show in Dallas Aug. 25.

Paccar’s focus on quality and operational improvement through programs such as Six Sigma, Sobic said, are fundamental to the company’s success. These same commitments are necessary from the supplier base, especially as the market strengthens and production increases.

He outlined what Paccar expects from its supplier partners:
• Global capabilities and global support;
• Investment in technology and quality systems;
• Less than 50 ppm (parts per million) defects or errors;
• A commitment to Six Sigma;
• Investment in capacity to support Paccar’s global growth;
• Reducing product complexity without compromising performance and quality;
• Increasing design collaboration;
• Jointly providing low-cost solutions for customers; and
• On-time delivery.

Regarding delivery, Sobic said, “If there’s one message I can leave you with from the parts aftermarket business, it is not ‘location, location, location.’ It is ‘availability, availability, availability.’ ” He said as truck production ramps up, Paccar is looking to its supplier base to provide a 97 percent fill rate. “We are taking steps to increase our parts inventory goals to ensure that our customers will have the part when it is required.”

While North American truck sales continue to struggle, Sobic noted Paccar’s aftermarket performance was strong. He said Paccar Parts grew by 7 percent year-over-year with $1.9 billion in revenue. The parts division operates 13 global distribution centers and has implemented new technologies such as a voice recognition system that provides a 30 percent improvement in pick productivity and error reduction of 1 in 40,000 lines picked. 

“Suppliers have asked us if we are willing to share these technologies,” Sobic said. “The answer is a resounding ‘yes.’”