Judge Parts From Another Angle
In our last post, we talked about how Last Sale Date can be misleading. Another angle that must be used in conjunction, and arguably with more weight than Last Sale Date, is Last Received Date. Measuring parts is about how long you’ve tied up capital and haven’t “turned” it – rather than when you …
Your Parts Department Reports Are Wrong, Part 2
The second thing Parts Inventory Reports look that could be misleading, is the “last sale date”. Which deems the “aging” of the part. Last Sale Date looks at the last “invoice” activity, including if it was a credit. There are a large amount of parts which show as recent Last Sale Date, but are …
Your Parts Department Reports Are Wrong
Your Parts Dept reports could be misleading. The amounts showing “non-stocking” could be out of whack. Unless you can parrot “exactly” how the DMS qualifies parts inventory phase-in and phase-out, then its possible, if not accurate, to how you calculate and deem parts as Active or Non-Stocking. More on this in the next post… …
Rule Of Thumb – Frozen Capital In Parts
In the last post we talked about how Parts over 9 Months old are only 50% of the Idle Parts Inventory dollar value. The other 50% is in Special Order Parts that are not yet aged over 9 Months, that most don’t know about. A rule of thumb is – whatever parts you have over …
50% Of Your Problem You Are Unaware Of
When we have Parts Inventory that is considered Idle, or aged Parts Inventory, many only look at parts over 9 Months Old. Yet, that is only 50% of the parts which are Idle. The other 50% of the Parts Inventory that is Idle are Special Order Parts, which haven’t aged out over 9 Months. [sgmb …
Used Car Sale! 10 Cents On The Dollar
Got your attention?? You’ll find 4 Used Dodge Caravans in Parts Department, but in a 1000 pieces, called Idle Parts Inventory, which will be written off or sold at 10 cents on the dollar when it reaches 12 months old. If this happened in Used Car Dept – what would you do? I speculate, …
Parts Dept Affects 50% Of Your Dealership
It’s time to understand that the Parts Department is a major department, that needs as much attention from upper management, including the Controller as any other department. Fixed Ops is half of your business, and the Parts Dept has their hand in all of it, but I’d venture to say gets less than 5% of …
Parts Is Like Voodoo
Parts Department is the only department in your dealership that only 1 person really understands. In every other department, multiple levels of management understand how it works, and how to make it successful. In Parts – that’s not the case. It’s time to understand that the Parts Department is a major department that needs …
Money Manager – Your Parts Manager
With the lack of OEM Return Allowance, it’s critical that your Parts Manager has all the tools to succeed, including training. What if we wrote off Used Cars and tossed them in the garbage? Or received 10 cents on the dollar? Parts is no different, except it’s a Dodge Caravan in thousands of pieces. [sgmb …