There is a lot involved in managing your inventory but often times, automotive parts departments don’t realize that professionals, like our team at Pro Count West, can help with so much more than your annual parts inventory.
Here are six other ways our team can help you optimize your inventory position and increase cash flow.
1. Buy/Sell Inventory
When buying or selling a dealership, you want to be sure the transaction results in the best possible outcome. An important part of achieving this objective is ensuring that the associated inventories, specifically the auto parts inventory, have been appropriately analyzed and valued.
At Pro Count West, we are highly equipped with the knowledge and experience needed to ensure that you optimize your inventory value in a buy/sell agreement. We will help you identify saleable and non-saleable inventory as well as find other opportunities to redeem some of the value on non-saleable, where possible.
2. Termination Returns
Inventory turnover is an important source of revenue for any business. As such, having an increased amount of overstocked, aged or obsolete parts can have a negative impact on your bottom line.
At Pro Count West, we have years of experience, working with automotive parts manufacturers. We know which manufacturers offer parts return programs and we can limit the number of manufacturers rejected parts returns.
This knowledge helps us to quickly and efficiently separate returnable and non-returnable automotive inventory, allowing you maximize credits and your cash position.
3. Inventory Organization
Having a well-organized and properly managed automotive spare parts inventory plays an important role in ensuring efficiency, productivity and customer satisfaction in the parts and service departments. It also helps parts staff plan better, reduces the chances of ordering parts that are already in stock and helps minimize obsolescence.
Pro Count West’s automotive inventory professionals have decades of parts department experience and have developed organizing techniques that will help ensure your staff are able to find parts quickly and improve your service department's productivity.
Whether you’re looking to reduce obsolescence, address overstocking issues or improve in-house parts availability for your dealership, we will deliver positive results with our reorganization services.
4. Warranty Reimbursement
There are few things more frustrating for automotive dealers than warranty work. The work itself isn’t an issue, and it’s great that you are able to offer that service to your clients. The problem is obtaining a fair amount of reimbursement, from manufacturers, for warranty work you completed.
Reconciling your auto parts inventory isn’t just about ensuring you have properly recorded the number of physical parts on your shelves. It is also about ensuring that your books and records are properly balanced throughout the year.
While this process can be time consuming, it is incredibly beneficial to your dealership. Not only does it help minimize preventable errors, which means less time will be spent analyzing and correcting your books, it can also be an effective tool for determining whether your employees are following accounting best practices and will ensure they are not taking shortcuts. It will also help you determine whether your administrative staff are properly equipped and trained to be managing your books.
Our team has the knowledge and experience to perform a complete reconciliation of your inventory balance against your general ledger to satisfy key stakeholders’ requirements for a precise count as well as provide post inventory consultation to help you improve your department’s profitability and efficiency.
6. Cycle Counts
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 can 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.
As is the case with our annual inventory services, our team of experienced automotive inventory professionals have the knowledge and industry-seasoned skills necessary to identify and provide solutions to potential problems, whether they are parts or accounting related.
For more information on the services we offer, contact us today! We look forward to discussing how we can help you, your team and your company succeed.