Maintaining an accurate count of your auto parts inventory will ensure your service department is able to perform efficiently and effectively, but, despite common perception, your annual parts inventory count doesn’t need to be at the year-end.
In fact, having an outsourced company count your inventory in the summer could actually save you money. A physical inventory is needed to provide accurate accounting data and identify any differences between what is currently in your parts department, compared to that entered on your accounting system.
Your dealership probably has thousands of automotive parts in stock to ensure you are able to service your client’s vehicles in an efficient manner. Keeping track of this much inventory is difficult - an accurate inventory count will allow you to adjust for any discrepancies between your shelf counts and your accounting.
As long as this count is done at some point within the fiscal year, the time of the year is not important. Here are some key benefits of counting your inventory in the summer:
The biggest benefit to a mid-year physical count is a saving on costs. Most auto dealers undergo their inventory counts at the year end, due to a perception that this is when it is supposed to be done. However, this is not the case and many outsourced companies will be busier during this period because of the increased demand. Outsourced companies, such as Pro Count West, will have more time during the middle of the fiscal year and will typically offer discounted services.
Increasing Your Profitability
A physical count of your inventory will increase profitability, no matter what time of the year you undergo it. A count will ensure your parts are properly accounted for, that values are appropriately assigned and the parts department is organized and able to worked effectively and efficiently. By making sure your on-shelf counts match your computer counts, you will increase the productivity of your employers and your business.
Improved Customer Service
There’s nothing more frustrating for a customer than work on their car taking longer than the initial estimated timeframe. It’s more than likely that you’ve been in a situation where you have promised to fix a customer’s car for a specific date. This was because all the parts needed seemed to be in stock on your system, but you later found out that one of the required parts was missing. Perhaps it had been misplaced, used on another job or not properly allocated. Having your physical inventory and accounting system in sync will remove this worry and improve customer confidence in your business.
If you have your inventory counted in the summer, then it’s not necessary to have your parts counted again at the end of the year - but it does no harm. Counting your inventory more than once a year provides accurate data, allowing you to work productively all-year-round.
Having an outsourced company count your inventory in the summer can help your business cut down on costs, become more productive and improve your customer service and profitability - there’s nothing to lose.