GM Daily Ordering

[jdpetey]

Ever since the new GM Parts System has been put into effect, I have been placing daily stock orders combined along with special orders as DRO's. Days supply etc. was modified to implement the process.

Would it not be more profitable to order the special order parts daily and run the stock order less frequently, saving on freight? Order source 102 (if your with ADP & qualify) maybe once a week using option 4 with 8.25% discounts and some of the daily orders with all reserve to balance things out?

Maybe we're a little bit behind, ahead or right in line with other dealers. I would like to know.

jdpetey

[Jon]

I'm on ADP too. I put in a CSO and a DRO everyday. I put the customer parts that may qualify for the 30 day SP-ORD return on the CSO as well as any that need to be on a CSO to refer. The rest of the customer parts go on the DRO. I manage my return reserves vs. discounts on a monthly basis, using option 4 for most orders most of the year. In December I use option 3 to dump as much as possible into reserves since the financial EOY makes it impossible to turn a net profit that month anyway. I am running about 15% GM obsolesence including my RSG sources, I'm 5 line - all except Chevrolet. True obsolesence is between 7 and 8% without the RSG sources factored in. Watching the 30 day customer returns is the key to squeezing that extra gross out with the code 4 without burying yourself in junk.