Return reserve

[parts6brandon]

This week General Motors of Canada changed our return plan to have any CSO returns be charged against our return reserve. It seems our Canadian parts system is slowly changing to one like you have in the U.S. My concern is a mere 3% return reserve is not going to be enough to look after returns from wholesale, the service and body shops as well as general inventory obsolescence.
Any thoughts or suggestions ??

[Farfinator]

Since you can't alter the 3%, the only suggestion I have is to minimize your potential exposure to returns.
1. Carefully review your SOP procedures with your Service Manager, and generate a daily report for each advisor of their SOP's. Holding each advisor accountable helps conciderably to curtail SOP build up. Track returns from the shop (i.e.) tech error. Correct trends with Service manager.
2. If you don't already impose a restocking fee, then concider strongly assigning one. 15-20% should discourage your more abusive wholesale clientel from excess. Track returns from your wholesale customers. Dump the guys if they are costing you too much in returns. Limit returns on SOPs to 15-30 days max! Your discretion if you stock the stuff.
If you feel you are at risk than you should take action to safeguard yourself.