Easy Ways To Solve 3 Common Auto Parts Inventory Issues

  Mike Bachara   |     Aug 25, 2020

Automotive Inventory

There are a lot of problems you can run into when managing an automotive parts department. 

While some problems are unavoidable no matter how organized you are, there are some big problems that can be easily fixed with a few small changes.

 

  1. Stock Shortages 

Stock shortages make it more difficult to maintain productivity and can increase conflict among departments. But 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. 

  1. 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 many skills. Sometimes it even requires employees with specialized roles. 

The problem is hiring multiple employees to fill these specialized roles is not possible, especially for smaller shops. Instead, consider hiring a specialist that can help you with your inventory management and train your staff to be more efficient. 

  1. 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 dealership’s auto parts, training staff on automotive inventory management best practices or implementing processes to minimize stock shortages, contact us today!

Guide to Optimizing Inventory MGMT

 

By Mike Bachara

Mike Bachara | Owner of Pro Count West
Mike Bachara | President Pro Count West

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