PartsEdge announced today the publication of “How to Easily Identify Issues in Your Parts Inventory,” an ebook designed to help Parts Managers identify critical inventory issues, as well as understand how to improve their inventory turns and fill rate percentages.
“By talking and working with Parts Managers over the years, I came to fully appreciate the challenges they face,” said Cliff Cope, vice president of PartsEdge. “These managers want to be more proactive and not reactive. They want to ensure their DMS is working for them instead of against them.”
A parts operation integrates tightly with a company’s DMS. But out of date DMS policies and settings can have a negative impact on the dealership’s parts inventory. Dealerships who operate with static settings, for example, may experience low gross profits and fill rates. One solution offered in the ebook is to hold a regular DMS review, make needed adjustments and follow-up, nipping inventory performance issues in the bud.
“The easiest way to improve inventory turns is to bring up their fill rate. This means the parts on hand are selling. Our ebook gives managers a formula for calculating inventory turns, as well as for calculating fill rate percentage,” said Chuck Hartle, president of PartsEdge.
According to findings by the National Automobile Dealers Association (NADA), the single greatest source of profit for a dealership is typically its service and parts department, accounting for 49.6% gross profit, with the remaining gross profit spread between new and used vehicle sales and F&I products.
“How to Easily Identify Issues in Your Parts Inventory,” part of a series of industry ebooks by PartsEdge, and is available now for free download at partsedge.com/ebooks/
For more information on PartsEdge and how it can help your dealership parts department set up price matrixes for maximum success, understand your underlying parts data and reduce obsolescence, visit partsedge.com.