PartsEdge, the industry’s leading parts inventory and management service provider, announced Weld County Garage Buick GMC reported a 96% reduction in non-RIM obsolete inventory using their parts management service in 2022. In addition, they saw an overall reduction of 87% in obsolescence to finish off the year.
Scott Robins, Parts Manager for Weld County Garage Buick GMC, points to PartsEdge obsolescence reduction strategy and tracking as one reason they saw such tremendous results this year, saying “I think that the work PartsEdge does in the background correcting and maintaining sources has been most helpful to [our] team. PartsEdge has played a part in increased profits through decreasing obsolescence and matrix pricing.”
While Weld County ended the year with big wins in parts obsolescence, the team also saw gains in profitability with a 62% increase in productive, actively-selling parts and a 15% reduction in forced inventory from special orders.
“The parts department is poised to take center stage as we move into 2023,” said PartsEdge Sales and Marketing Manager, Kaylee Felio, “As inventory regulates across dealerships this year, managers are looking for new profit centers to both decrease costs and increase revenue. Stocking the proper parts and keeping a close eye on obsolescence will prove to be a winning formula.”
To say that managing parts departments is stressful is a massive understatement. 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. To summarize: a thriving parts department is directly linked to high profits. One of the most crucial parts of the job is anticipating issues before they occur, and coming up with solutions so that if and when conflicts arise, a plan of action is already in place.
“PartsEdge’s team and approach are special because the team cares about our business and the system they implement works,” said Robins.
For more information on PartsEdge and how it can help your dealership parts department set up price matrixes for maximum profit, understand your underlying parts data, and reduce obsolescence, visit www.partsedge.com. In addition, Parts Managers can download free e-books covering many of these topics by visiting: https://www.partsedge.com/ebooks.
