Theory: The new bottleneck is the Service Centers

[swhme]

As is the case when you scale up any logistics endeavor, the bottleneck just keeps moving. First it was design, then it was tooling, then it was supply chain. It seems like now the service centers are full of trucks and they can’t deliver them fast enough.

If so, this is a really good problem to have, as it’ll be relatively simple to fix through hiring (increase the number of techs who can do PDI and hand off trucks) and encouraging people to pick up from a service center rather than at-home delivery. I think they’d be wise to offer Uber credits to folks to come pick up their truck if they’re within 100 miles…

what do y’all think? I think Q2 numbers are gonna be huge.

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[Guy]

I agree and pick up at the factory could easily get 300+ vehicles a month out saving time, money and shipping damage.
They need to do better QC at the factory, more protection while shipping and better QC at the SC. Those measures will then minimize service calls which tax the centers.

 

[Engi_Nerd]

I personally think there's no way that Rivian has a bunch of perfectly deliverable vehicles just laying around waiting for service centers to PDI them. I assume that most of the trucks people see on the lots are either missing parts or have documented QC issues in need of fixing before handing over to the customer. Having them distributed in service centers is likely a better look than having them piled up at the factory.

 

[R1Sky Business]

The recent email mentioned ability to pick up at service center at some locations. It's happening!!!

 

[TAZ]

From what I gather, my truck has been built for well over a week but still waiting for transport to the SC. It’s a possibility that the SC is asking to hold the truck at the factory also.

 

[swhme]

From what I gather, my truck has been built for well over a week but still waiting for transport to the SC. It’s a possibility that the SC is asking to hold the truck at the factory also.

It sounds like there are a lot of trucks in normal, and my guide sounded pretty frazzled the times I was actually able to get through to her…

 

[Craigins]

Not a new theory. However I don't think it is simply just "hire more people" to fix.

I believe they allocate the vehicles based on service center capability to service the vehicles in their area. They must have metrics by now that say X% of deliveries will need service. Thus you would over deliver an area just to have the service center swamped and have every new service issue take weeks to complete.

I believe this is why we see waves of deliveries in like CA, then WA, then Midwest, etc.

 

[R1Sky Business]

From what I gather, my truck has been built for well over a week but still waiting for transport to the SC. It’s a possibility that the SC is asking to hold the truck at the factory also.

U prefer delivery or pickup?

 

[R1Sky Business]

It sounds like there are a lot of trucks in normal, and my guide sounded pretty frazzled the times I was actually able to get through to her…

A good thing I say

 

[R1Sky Business]

Not a new theory. However I don't think it is simply just "hire more people" to fix.

I believe they allocate the vehicles based on service center capability to service the vehicles in their area. They must have metrics by now that say X% of deliveries will need service. Thus you would over deliver an area just to have the service center swamped and have every new service issue take weeks to complete.

I believe this is why we see waves of deliveries in like CA, then WA, then Midwest, etc.

Great configuration.

 

[TAZ]

U prefer delivery or pickup?

I offered to pick it up at the SC but my 8 steps haven't opened yet. I do have a VIN but it can always all change! Half temped to fly up to Normal and just drive it back the 900+miles to Denver. We'll see what the next few days brings.

 

[Varuca-TX]

what do y’all think? I think Q2 numbers are gonna be huge.

I also think Q2 numbers will be well above projections - I had my First Mile drive a couple of weeks ago and the Employee said they were shooting for a 14,000 vehicle Q2 production - he didn't elaborate, but it seems if true that Rivian is planning to under promise and over deliver - we will see

 

[swhme]

I also think Q2 numbers will be well above projections - I had my First Mile drive a couple of weeks ago and the Employee said they were shooting for a 14,000 vehicle Q2 production - he didn't elaborate, but it seems if true that Rivian is planning to under promise and over deliver - we will see

I hope so... I've been accumulating stock big time...

 

[Varuca-TX]

I hope so... I've been accumulating stock big time...

Me too - I would have loved to grab more in the low $20s

 

[EVTrucking]

SCs are probably a big part of the bottle neck. Not enough trained/experienced staff to deal with all the inspections and significant number of QC, Software, Hardware and damaged R1 issues.

I think it will be quite a long time before the SCs are not part of the bottle neck.

Another contributor is the fluctuating run rate at Normal is caused by fluctuating parts supply. Build when they have parts and idle when they don’t.

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