When an item is on backorder, it means that the vendor is out of a certain item but expects to have it back in stock and delivered by a certain date. Backorder rate is the percentage of orders that cannot be delivered by the original date.
There’s an automotive tool that you’ve possibly heard a lot about in recent months. You may already have it installed at your dealership. That tool is a dealership management system (DMS).Read More
Are you looking to enhance your annual parts inventory and improve the financial health of your automotive parts department? Then understanding ending inventory is key!
Ending inventory is the value of the automotive parts you have available for sale at the end of a given accounting period. It is calculated by adding beginning inventory and purchases, then subtracting cost of goods sold (COGS).Read More
Carrying costs are the cost of holding inventory in stock. They’re also referred to as holding costs and inventory carrying costs, and they can have a significant impact on your dealership’s bottom line.Read More
Receiving automotive part inventory seems like a straightforward task, and can be when done properly.
But it is also a common time for inventory errors to occur due to miscounts, inputting mistakes or having untrained staff receive shipments. That’s why, like anything you do in your business, having proper inventory processes and training are paramount.Read More
Surplus inventory in your automotive dealership often leads to waste and losses. Sure, sometimes a well-planned marketing campaign or a sudden unexpected spike in service needs can help reduce the stock. But the reality is that once inventory becomes obsolete it usually doesn’t do much more than take up space and capital.Read More