Remember when you roll up to a traffic stop, and that awful screeching noise you hear coming from somewhere near you like nails clawing at the insides of your gut? You probably looked out of the window and tried searching for the car it came from only to realize it was you all along as …
How you define your parts inventory’s phase-in and phase-out criteria is one of the most important jobs that a Parts Manager has to do to control their parts inventory. Not only from a fill-rate perspective but also from a financial perspective. How you phase-in/phase-out your parts inventory has a direct impact on how much capital …
Parts Managers who are the most progressive, and have the cleanest parts inventories, are those Parts Managers who are professionally trained in parts inventory control. But there is more to the story than just that. Learn what some of the country’s most progressive Parts Managers know that help them keep their inventories within industry …
For years, OEM manufacturer replenishment programs, such as Chrysler’s Automatic Replenishment Order (ARO) program have stocked dealers with additional parts that lack sales volume on the individual dealer level. It is true, that these additional parts do have regional and national sales. But there is a cluster of parts that are suggested an individual dealer …
For every dealer, the investment of capital into assets, like used vehicles and parts inventory, is large, let alone the investment in the real estate itself. The job of the car department managers and the parts manager is to take the investment of capital in those assets and convert them into profit. Turning over your …
If you’re like most Parts Managers, at some point you’ve found yourself in a pickle with a mandate from upper management to cut physical parts inventory, or hit 1.5 Months Supply. If upper management is focused on only one of these two numbers, it creates unintended consequences that cost the dealer substantially in the end. …
Parts inventory that is 12 months old has a 95% chance of never selling again, and is in write off territory. Paying the heavy costs of writing off aged parts inventory is a spin-off of the root problem. The root problem starts well before parts become 12+ Months old. NADA guide for the value of …
On average, idle and obsolete parts inventory comprise 30% of inventory on the shelves of every dealer in North America. Idle parts include non-stocking and phased-out parts. Non-stocking parts are those parts that were unsold or returned special order parts while phased-out parts are those parts that have lost their sales demand and haven’t sold …
Having a solid base to qualify parts inventory for stock starts with knowing which phase-in setup criteria has the best odds. Playing to the odds will help you: Reduce phased-out parts in write-off territory, Bring fast selling parts, and Create efficiencies in your parts-department We think you’d agree that the article above are all …