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Auto Parts Inventory

Helpful Tips for Better Managing Your Auto Parts Inventory

We can help you manage your inventory Managing inventory is difficult for all businesses, especially large dealerships that have many people handling their parts inventory. As such, there are often differences between the actual physical inventory and the inventory records.

While discrepancies are almost always going to occur, there are many ways you can minimize these differences and help ensure your inventory is as accurate as possible. 

1. Don’t Overlook the Importance of Good Warehouse Personnel

Your department runs lean in personnel. That’s why it’s no surprise that when a parts order arrives it’s tempting to assume that the amounts received match the amounts ordered. That way you can quickly receive the stock and move onto the next task. Unfortunately, though, vendors make mistakes. Make sure your shipping and receiving clerk and warehouse staff are well trained. The dealerships that invest their time and money in this area are rewarded many times over. Most of the discrepancies in a Physical Inventory can be attributed to poorly trained staff.

Before putting your new parts on the shelves, verify that the numbers match the shipping receipts, and also match the parts bin labels. Otherwise, your records will be inaccurate before the parts have even been handled by staff or sold to customers.

2. Store Your Parts Thoughtfully 

While it takes less time and thought to put new stock wherever you have space, considering where you put it can help reduce shortages and misplaced parts. Always face the part numbers out whenever possible.

Taking the time to create an effective inventory organization system and then ensuring it is implemented and followed can result in greater accuracy and it will, more than likely, have a positive effect on your productivity and dealership efficiency!

3. Put Parts Back Where They Came From

This may seem straight forward, but many dealerships suffer from parts being put back in the incorrect place or not being put back at all.

By ensuring that you have implemented a simple and time saving process for managing returned parts, you can increase accuracy and decrease the number of parts that go missing or get misplaced.  

4. Maintain Efficient Inventories

Most manufacturers these days have auto replenishment programs that are now mandatory.  This does not mean that their programs don’t need to be managed.  Now, more than ever, it is critical that the person in charge of ordering manage these programs. We all know what happens when you have too little inventory. However, having too much inventory not only uses up working capital but it also increases the chance of obsolescence.  It also makes it more difficult to monitor and manage your inventory, increasing inefficiencies and inaccuracies.  Don’t let the manufacturers dictate 100% of your stocking levels.

Take the time to review the turnover for each item and determine if you can cut back on the depth of in stock items. Once you have done this, set minimum stock amounts that reflect the turnover and supplier lead time to minimize the likelihood of being caught without the item on hand.

This will minimize the amount of inventory you are controlling within the shop and help to streamline your processes.

5. Complete Regular Inventory Checks 

The more frequently you check your inventory, the easier it will be to spot errors and problem areas. This will, in turn, have a positive effect on your inventory records.

If you are unable to check your entire stock, focus on the fastest moving items, and then the highest dollar parts. Take a couple bins each day throughout the year and check your accuracy.  By doing so, you are able to identify the areas that your staff need more training on.  If you know that there are some parts that never seem to match your records, take the time to check their levels more frequently. This will help you to identify problems as they occur, and hopefully identify the source and resolve the issue.

Another area that you should focus on are your Special Ordered Parts.  You should inventory and correct the SO’s on a monthly basis.  Many times these orders do not get filled, and ultimately end up as a variance at inventory time. 

At Pro Count, we are available year round to help you complete parts inventories. We will come in and help you reconcile your accounts on a bi-annual, quarterly or monthly basis, so that you can ensure accuracy and resolve issues as they occur.

6. Have a Back-Up Plan

These days, few things are done without the use of a computer or some sort of technology, including inventory management.

While we happily depend on these technologies to help us with our day-to-day tasks, they are not always dependable. Maybe something is damaged, maybe it needs to be charged, maybe the electricity went out or maybe someone took it.

Whatever the issue, having a manual process in place that can be implemented when your technology is unavailable will help ensure that you are equipped to maintain proper records.


Ultimately, the key to accuracy is planning, proper training and preparation, as well as taking the time to do it right. While getting as much done in a short period of time is important, doing it right is even more so. By taking the time to implement effective inventory management processes, it will become easier to do both, resulting in greater productivity, more accuracy and increased profits. 

Guide to Optimizing Inventory MGMT

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