Management can change for many reasons. Maybe the business was sold or your dealership was part of a merger or acquisition. Maybe your previous manager retired or was replaced because their management style didn’t fit with your organizational culture.

Whatever the reason, change is inevitable.

If you’re the new Parts Manager, Parts & Service Director, or Controller at an automotive dealership, congratulations on the new position.

As part of a management team, you will have a lot to do. You will want to review all of the established processes, get caught up on current projects, and introduce yourself to everyone you’ll be managing or working alongside. After introductions, there is likely a long list of things you will want to get started on.

One important thing you should look at sooner rather than later is inventory reconciliation.

Parts inventory is one of the dealerships biggest assets, and is critical to smooth operations. While becoming comfortable with the inventory system is an important step, you also want to consider taking a physical inventory.

Maintaining an accurate auto parts inventory and efficient processes is key to your success as a manager, and is normally included in key performance indicators. That’s why, as a new manager, you want to be sure your inventory records are reconciled and up-to-date from the moment you start.

Reconciling your inventory will help identify problem areas for you to address as possible projects or new initiatives. You may discover there is a need for more training or a change in standard operating procedures. Maybe there is higher than average obsolescence or perhaps there are repeated discrepancies with special ordered parts. 

Perhaps the most important reason, conducting a physical inventory will also create a benchmark for you at the starting point, so later you can measure the results of your efforts against the initial situation. This may help you quantify accomplishments to upper management at a later date. 

Lastly, doing an inventory as soon as you arrive at your new dealership will ensure that any discrepancies, which existed prior to your being hired, have been appropriately detached from your management reputation.  If inventories were being done in house, you want to make sure they were being done properly.

There is nothing worse than doing your first scheduled inventory, only to discover auto parts missing, and being unable to determine whether it happened during your time as manager, or prior to when you started.

Many things can be uncovered by taking a physical inventory.  While we don’t want to suspect others of theft, missing parts are not the only way dishonest employees can remove inventory dollars, and many times it’s not Parts employees that do so.

To ensure that your new role as a Manager starts off right, and that you have a clear picture of your department’s assets and issues, it is critical that you take an inventory of auto parts stock as early in your tenure as possible.

And as an owner of the dealership, when you hire anyone that has access to inventory dollars, such as Parts Managers and Controllers, you should reconcile your inventory. A change is the best time to check on your assets.

If you would like assistance inventorying your automotive parts, contact us today!