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Auto Parts Inventory

5 Ways a Well-Managed Inventory Contributes to a Successful Dealership

Interior of a car

The success of your parts department is key to the effective operation of your automotive business as a whole.

If it is not properly maintained, you risk inventory errors and challenges that will have an adverse effect on your entire business - including service, administration, sales and much more.

To demonstrate the importance of a well-managed inventory system, here are five ways your dealership will benefit from a successful parts department.

1 - Ordering

Accurate inventory management helps your parts manager maintain stock. If your records are correct, you will be able to track historical trends to determine optimal restocking numbers and times. This enables your inventory system to effectively notify parts personnel when a part needs to be re-ordered.

Feeling confident that your inventory records are accurate improves the accuracy of your parts orders and ensures your dealership is efficiently stocked at all times.

2 - Resource allocation

Well-maintained inventory records ensure that you’re optimizing all areas of your business, including space, capital, productivity and profits.

Having too much inventory can take up valuable storage, increase the risk of obsolescence and divert capital that would be better used elsewhere. On the other hand, a shortage in inventory can have an adverse effect on your lead times and often results in employees spending unnecessary time looking for a part that they believe has been misplaced.

3 - Service scheduling

By maintaining an accurate parts inventory record, you can confidently ascertain how long it will take to get the parts you need to fix a customer’s vehicle. At a glance, you will be able to determine whether or not you have what you need to fix a customer’s vehicle or whether the customer will have to bring their vehicle into the shop on another day, once the parts have been ordered and delivered.

This will allow your staff to schedule service appointments productively.

4 - Customer service

Whether your customer is visiting the parts desk to buy a single part, dropping off their vehicle with the service department for repair, or considering the reputation of your team as part of their car buying experience, your ability to serve them will be key in determining whether they decide to do business with your team.

If your inventory records are properly maintained, you will be able to answer parts inquiries and fill customer orders faster. If a customer has to wait longer for a response or finds out that apart they were told was in stock isn’t, it can have a negative effect on their opinion of the company. With the increase in online reviews, their experience can extend beyond them personally and affect the likelihood of new customers choosing you over your competitors.

If you can quickly determine whether or not the auto part is in stock and, if necessary, how long it will take to obtain, your customer will feel more confident in your business. This will improve their overall satisfaction.

5 - Time management

Effective inventory tracking means that your staff will spend less time looking for parts and reconciling the books and more time doing tasks that are focused on improving the operations.

If you feel like it is time for you to get your inventory in order so that you can optimize your dealership, contact our team of professionals today.

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