Reflection is a big part of starting a new year. Most of the time, this reflection is done on a personal level, looking at ways we can accomplish individual goals and achievements. While this is a great way to support your personal growth, looking at your Parts Department, with the same critical eye, can help improve operations and efficiencies for the company, as a whole.

To help you on your way to a better 2018, here are 3 resolutions that can help improve your inventory control.

Resolution #1: We will research and analyze our suppliers

Take the time to look at your relationships with current suppliers and research alternative suppliers if there are issues.

Consider whether your suppliers are providing products in a timely manner and what sort of deals and promotions they offer your business. It is important to be confident in your suppliers, and that often is built over a long-term relationship, but markets change and agreements need to stay competitive.  Are your current vendors helping you grow your business?

You would be surprised to see just how many dealerships continue to work with the same suppliers when alternative suppliers, offering more advantages, are available.

If it becomes clear that your current supplier just isn’t meeting your standards or that they are affecting your efficiency and quality of customer service, it may be time to reach out to them or even research a new supplier. 

The key is to be aware of the available options and know how each potential supplier fits into your parts strategy.

Resolution #2: We will evaluate slow-moving parts

The key to strong inventory management is knowing how much of your inventory is on-hand, at all times. But, it doesn’t stop there – you must also understand how those parts move and analyze sales patterns.

Doing so allows you to optimize inventory levels for fast moving parts but also allows you to recognize when parts are not moving fast enough.

Holding inventory not only takes up space, it ties up capital and decreases overall profits.

Taking the time to analyze your slow-moving parts and brainstorm ways to move the parts quickly or unload them while they still retain value, can ensure you maintain strong profits.

Resolution #3: We will invest in inventory management

Inventory management solutions give you the ability to accurately track and manage inventory.

This resolution has two components. The first is an inventory management software. This software will keep track of your inventory and provide historical trends analysis. It is likely that your parts department has already invested in such as system, as it is critical to the smooth operation of any parts and services provider.

The second aspect of your inventory management solution is an inventory company that can help you manage your physical inventory more efficiently. Equipped with years of experience, inventory companies can help you better organize and maintain your Parts Department while providing regular counting and consulting services.

Inventory management is critical to the success of any dealership’s Parts and Service Departments. For more information on how you can improve your inventory control in 2018, contact us today!