--- title: 3 Steps to Optimizing Your Inventory Levels description: Many parts departments find their shelves becoming overstocked. If you are trying to optimize your inventory, you are not alone. Here are 3 ways to get started image: https://www.procountwest.com/hubfs/Blog%20Images/clem-onojeghuo-219194.jpg --- Nationwide Coverage [** 1-480-797-2168](tel:+14807972168) [Get a Quote](https://www.procountwest.com/get-a-quote-for-auto-parts-inventory-services-for-dealerships) [![Pro Count West](https://www.procountwest.com/hs-fs/hubfs/Images/Logo/PCW-Logo.png?width=1044&height=191&name=PCW-Logo.png "Pro Count West")](https://www.procountwest.com/) [Get a Quote](https://www.procountwest.com/get-a-quote-for-auto-parts-inventory-services-for-dealerships) ![AdobeStock_56013074.jpg](https://www.procountwest.com/hs-fs/hubfs/Images/Banner/AdobeStock_56013074.jpg?width=3000&name=AdobeStock_56013074.jpg "AdobeStock_56013074.jpg") # Mike's Inventory Management Blog [Auto Parts Inventory](https://www.procountwest.com/mikes-blog/topic/auto-parts-inventory) # 3 Steps to Optimizing Your Inventory Levels [![](https://www.procountwest.com/hs-fs/hubfs/Images/Page%20Images/Mike%20Bachara%20-%20Owner%20of%20Pro%20Count%20West.jpg?width=60&name=Mike%20Bachara%20-%20Owner%20of%20Pro%20Count%20West.jpg)](https://www.procountwest.com/mikes-blog/author/mike-bachara) [By Mike Bachara](https://www.procountwest.com/mikes-blog/author/mike-bachara) - [Tweet](https://twitter.com/share) ![3 Steps to Optimizing Your Inventory Levels](https://www.procountwest.com/hs-fs/hubfs/Blog%20Images/clem-onojeghuo-219194.jpg?width=320&name=clem-onojeghuo-219194.jpg "3 Steps to Optimizing Your Inventory Levels")Less is more – you have heard it a hundred times and when it comes to your parts inventory it is very applicable. Without planning for it, many auto parts departments often find their shelves becoming [over stocked](https://www.procountwest.com/mikes-blog/frozen-capital-in-parts-department-inventory-improve-your-cash-flow). Sometimes it is related to priorities – perhaps management has stated that they want a majority of parts on hand at all times, sometimes it is a means of saving money (bulk orders), and sometimes it is due to an unorganized parts department. Whatever the reason, if you are trying to optimize your inventory, you are not alone. Here are 3 steps for better inventory optimization! **1. Set Goals** As is the case with any strategy, you have to set goals before you begin making changes – otherwise, you will have no way of measuring your success. Maybe you want to reduce the amount of capital tied up in inventory by year end or maybe you want to increase the number of inventory turns, all while maintaining a high level of customer satisfaction. Just remember, when setting goals, you want to be sure they are SMART – Specific, Measurable, Attainable, Relevant, and Timely. **2. Consider Minimums and Maximums** It would be great if you could operate using a JIT (Just in Time) inventory system, but the reality is this is not practical for your customers and service department. Similarly, while we would all enjoy knowing that every part is on hand, maintaining that much stock is unprecedented. As such, you will need minimum and maximum stock levels. To determine the minimum/maximum number of units that should be maintained for each SKU, take a look at historical inventory trends. Maintain higher levels of fast moving parts that are less expensive, then prioritize based on cost, turnover and lead times.  The higher the holding cost and lower the lead times and turnover, the less you will want to stock. If the cost is very high and/or the turnover/lead times are low, consider making them a special order part and maintain no stock.  This won’t only help reduce the amount of inventory you need to stock, it will [increase available capital](https://www.procountwest.com/mikes-blog/frozen-capital-in-parts-department-inventory-improve-your-cash-flow) and minimize obsolescence. **3. Establish Policies** Once you have developed your inventory strategy, it is time to make it official. Develop a policy and, more importantly, communicate and implement your policy.  By ensuring you have policies in place to dictate your parts department’s inventory management goals, minimal stock levels and ordering/stocking procedures, you can avoid having your inventory levels get out of hand (again). If you would like help optimizing your inventory, [contact us](https://www.procountwest.com/contact-us-about-auto-parts-inventory-solutions-for-dealerships) today. Our inventory specialists would be happy to recommend and implement an inventory system to meet your specific needs. [![Get A Quote](https://no-cache.hubspot.com/cta/default/2865933/ff101576-8228-46c6-8c10-bcda79a95996.png)](https://cta-redirect.hubspot.com/cta/redirect/2865933/ff101576-8228-46c6-8c10-bcda79a95996) ![pcw-ebook-1](https://www.procountwest.com/hubfs/2023/pcw-ebook-1.png) #### Manage Your Automotive Parts Inventory Like a Pro [![Download Free Guide](https://no-cache.hubspot.com/cta/default/2865933/59af66e9-0864-4b41-bfb6-7f481f7938e8.png)](https://cta-redirect.hubspot.com/cta/redirect/2865933/59af66e9-0864-4b41-bfb6-7f481f7938e8) ## Related Blog Posts ![The Hidden Cost of Poor Parts Inventory Management in Dealerships (part 1)](https://www.procountwest.com/hs-fs/hubfs/2026/Hidden%20Cost%20blog.jpeg?length=1080&name=Hidden%20Cost%20blog.jpeg) Auto Parts Inventory - May 28, 2026 #### [The Hidden Cost of Poor Parts Inventory Management in Dealerships (part 1)](https://www.procountwest.com/mikes-blog/the-hidden-cost-of-poor-parts-inventory-management-in-dealerships-part-1) ![](https://www.procountwest.com/hubfs/Images/Page%20Images/Mike%20Bachara%20-%20Owner%20of%20Pro%20Count%20West.jpg) Mike Bachara President Pro Count West ![Why Regular Physical Inventory Counts Still Matter (Even With Real‑Time DMS Data)](https://www.procountwest.com/hs-fs/hubfs/2026/2026%20Physical%20Counts%20blog.jpeg?length=1080&name=2026%20Physical%20Counts%20blog.jpeg) Auto Parts Inventory - March 11, 2026 #### [Why Regular Physical Inventory Counts Still Matter (Even With Real‑Time DMS Data)](https://www.procountwest.com/mikes-blog/why-regular-physical-inventory-counts-still-matter-even-with-real-time-dms-data) ![](https://www.procountwest.com/hubfs/Images/Page%20Images/Mike%20Bachara%20-%20Owner%20of%20Pro%20Count%20West.jpg) Mike Bachara President Pro Count West ![2026 Auto Parts Inventory Optimization Checklist for Dealerships](https://www.procountwest.com/hs-fs/hubfs/Checklist%20blog.jpeg?length=1080&name=Checklist%20blog.jpeg) Auto Parts Inventory - February 24, 2026 #### [2026 Auto Parts Inventory Optimization Checklist for Dealerships](https://www.procountwest.com/mikes-blog/2026-auto-parts-inventory-optimization-checklist-for-dealerships) ![](https://www.procountwest.com/hubfs/Images/Page%20Images/Mike%20Bachara%20-%20Owner%20of%20Pro%20Count%20West.jpg) Mike Bachara President Pro Count West ### Navigation [![Pro Count West](https://www.procountwest.com/hs-fs/hubfs/Images/Logo/PCW-Logo.png?width=1044&height=191&name=PCW-Logo.png "Pro Count West")](https://www.procountwest.com/) With decades of experience, we provide Auto Parts Inventory and Warranty Reimbursement Services for Dealerships nationwide! ### Contact [1-480-797-2168](tel:+14807972168) Pro Count West, L.L.C. [Phoenix, Arizona](https://www.procountwest.com/arizona-auto-parts-physical-inventory-services-for-dealerships) [Chicago, Illinois](https://www.procountwest.com/chicago-auto-parts-physical-inventory-services-for-dealerships) [New York, New York](https://www.procountwest.com/new-york-auto-parts-physical-inventory-services-for-dealerships) [Florida](https://www.procountwest.com/florida-auto-parts-physical-inventory-services-for-dealerships), [Texas](https://www.procountwest.com/texas-auto-parts-physical-inventory-services-for-dealerships) [Alabama](https://www.procountwest.com/alabama-auto-parts-physical-inventory-services-for-dealerships), [Minneapolis](https://www.procountwest.com/minneapolis-auto-parts-physical-inventory-services-for-dealerships)    [![Contact Us](https://no-cache.hubspot.com/cta/default/2865933/9165322d-5f9a-4502-bdc2-f66f5ae06205.png)](https://cta-redirect.hubspot.com/cta/redirect/2865933/9165322d-5f9a-4502-bdc2-f66f5ae06205) [![facebook-icon](https://www.procountwest.com/hubfs/2023/square-facebook.svg) ](https://www.facebook.com/Pro-Count-West-144317705585251/) [![twitter-icon](https://www.procountwest.com/hubfs/2023/twitter-x-white.svg) ](https://twitter.com/procountwest) [![linkedin-icon](https://www.procountwest.com/hubfs/2023/linkedin.svg) ](https://www.linkedin.com/company/pro-count-west-auto-parts-inventories) 2026 © Pro Count West, LLC All Rights Reserved | [Privacy Policy](https://www.procountwest.com/privacy-policy) | [Contact](https://www.procountwest.com/contact-us-about-auto-parts-inventory-solutions-for-dealerships) | Created By [The Brit Agency](https://www.thebritagency.com) [[fa icon="chevron-up"]](https://www.procountwest.com/mikes-blog/3-steps-to-optimizing-your-inventory-levels#)