To outsiders, inventory management may seem straightforward and easy to do but, as a parts department manager, you know this is not the case.

Managing the amount of stock that passes through your dealership is a complex process and how you deal with inventory can change from one SKU to another, depending on a number of factors including its turnover, age, and versatility.

There are, however, some common problems that every parts department must deal with, and can quickly address if the proper steps are taken. Here are three of the most common issues:

1. Stock shortages

Not only do stock shortages make it more difficult to maintain productivity and increase conflict among departments, but it also has a negative effect on your customer satisfaction.

One of the best ways to limit the occurrence of stock shortages is to use an automated inventory control to set reorder points for each part while allowing for safety stock. That way, you will be able to reorder parts before they run out.

In addition, conducting regular inventory counts can help offset this problem. While many automotive parts departments already do annual physical inventory counts, reconciling parts more frequently can help you ensure inventory accuracy. This will reduce the likelihood of stock out and identify any problem areas.

If, due to resource constraints, you are unable to reconcile your full inventory more than once a year, consider hiring an inventory consultant (such as Pro Count West) or try focusing on troublesome parts – these can be effective ways to reduce shortages while also minimizing disruptions.

2. Lack of experience

Another common mistake made by automotive dealerships is a lack of experience, and not ensuring that your staff are properly trained. While inventory management can seem like a simple task, organizing, forecasting and keeping track of your inventory requires many skills and, often, employees with specialized roles.

Sometimes, however, hiring employees to fill these specialized roles is not possible or practical for parts departments, especially those in smaller shops. Instead, consider hiring a specialist that can help you with your inventory management and can train your staff to do if more efficiently.

3. Poorly managed storage

For automotive parts departments that have large inventories, poor storage management can result in a wide range of inventory problems. From tracking and storing to the layout of your storage and where parts are located, there are many factors that could throw a wrench in your overall success.

Having proper processes in place and ensuring everyone follows them is a great place to start when resolving a poorly managed inventory.

In addition, effectively laying out your storage so that parts are organized and placed in the most productive way possible is also important – try placing the most commonly used parts in the most accessible areas.

For help organizing your parts, training staff or implementing processes, contact us today!