Nationwide Coverage

Parts Management

What are the Common Inventory Problems from a Poorly Managed Auto Parts Inventory?

Side view of blue Audi

Dealerships have moved on from the old management processes of yesteryear. New technology has automated the way we keep track of our stock, and updated methodology has been adopted and implemented by both smaller shops and larger parts departments.

However, one thing hasn’t changed - the complex nature of effectively managing your inventory

One thing that stays the same for any automotive parts department or service dealership is that no matter how you manage your inventory, there are always room for mistakes.

Pro Count West lists three common mistakes, and the helpful tips for avoiding them.

1 - Stock Shortages

Not only do stock shortages make it more difficult to maintain productivity and increases conflict among departments, 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 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 to 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 or try focusing on troublesome parts – these can be effective ways to minimize shortages while minimizing disruptions.

2 - Lack of Experience

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

But sometimes hiring multiple employees to fill these specialized roles is not possible, especially for smaller shops. Instead, consider hiring an outsourced 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 many 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 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 your staff on inventory management best practices or implementing processes to minimize stock shortages, contact us today!

pcw-ebook-1

Related Blog Posts

Automotive Warranty Reimbursements: Get Fair Compensation For Your Dealership
Parts Management - March 27, 2024

Automotive Warranty Reimbursements: Get Fair Compensation For Your Dealership

Mike Bachara President Pro Count West
New Year, New Inventory Strategies: Auto Parts Management in 2024
Auto Parts Inventory - December 19, 2023

New Year, New Inventory Strategies: Auto Parts Management in 2024

Mike Bachara President Pro Count West
What Are Backorder Costs And Why Are They Important?
Parts Management - June 17, 2022

What Are Backorder Costs And Why Are They Important?

Mike Bachara President Pro Count West