DealersEdge Professional Forums

For those of you in the tire business, which doesn't matter what carline or size store:

What phase-in criteria do you use for stock selections?

Possum, keep in mind when setting up your source, most tire companies will only let you return stock tires for about one year.

We already stock about 25 sets but our tire distributor is going to give us a sea-tainer and I want to fill it up. Trying to decide based on sales what to add into new stock probably another 25 sets.

If you are a GM dealer, the GM Tire Program web site gives you some good information. 60 day and 365 day statistics for your dealership and other dealerships. Your tire supplier can probably tell you what you bought size wise also and you can use that as a guide.

I look at the Tire Program site, and look at the top seller for MY store, disregard part # and go with size only, and stock according to that. say I've sold 225.60.16 in 6 different brands - I look at the total tires, we'll say 60 in the last 90 days.
then I look at the brands sold - I will not stock GY integrity, I go to the next best tire as an economy tire, then the new 2 have to be rated for 75K miles, so I end up stocking 3 sets of tires, and I can present them as a good/better/best and/or premium.

Phase In 2/6, Phase Out 1/6. On hand count 280-310. Monthly sales average 408. Monthly CP RO count average 1,817.

Any outside purchase has lost sales posted to primary vendor part number. I recommend blinders when determining stock; I don't care the brand or model only that it has demands meeting Phase In requirements. It either makes me money or it doesn't.

FixedManager

If you are stocking at 2/6, what quantity are you using for both qualification and stocking? Does the sale of one tire to the body shop count as one event in your six months? What about a sale of two tires vs. four?

Are you stocking in only sets of four?

I only have room for 70 tires. So I obviously choose the top sellers X 4 each.. I do stock some RFT's that I only sell one or two of. Currently I only stock 2 RFT's in each size. I also stock a set of tires for my delivery trucks.

I find using phase in criteria for tires utterly useless and results in incomplete tire sets on the shelf.
In lieu of that, I set the FB to the desired stocking level. I made 2 reports in RPG. One to report the FB against the OH, so I can order up to the desire stocking level daily. The second report I look at weekly to identify trends to determine if I should be phasing in or out a sku and or changing the FB level.
Yeah, its not ideal, but it gets the job done and it is rare I fail to make a sale because I only have a onesy on the shelf.

drapp wrote:FixedManager

If you are stocking at 2/6, what quantity are you using for both qualification and stocking? Does the sale of one tire to the body shop count as one event in your six months? What about a sale of two tires vs. four?

Are you stocking in only sets of four?

Yes, only sets of four. This is my current ReyRey source setup:

SOURCE 10 GM TIRES


TO PHASE IN, A PART MUST:

1. HAVE DEMAND IN 3 MONTHS OUT OF THE LAST 6 MONTHS
WITH TOTAL DEMAND OF 12 PIECES

-OR-

2. HAVE BEEN IN INVENTORY FOR 9 MONTHS
WITH AN AVERAGE DEMAND OF 2.00 PIECES PER MONTH

TO PHASE OUT, A PART MUST:

1. HAVE NO DEMAND FOR 3 MONTHS,

-OR-

2. HAVE BEEN IN INVENTORY FOR 12 MONTHS
WITH AN AVERAGE DEMAND OF 1 PIECE IN 1 MONTHS


3. IF NOT PHASED IN, NON-STOCK (NS) PARTS WILL PHASE OUT AFTER 18 MONTHS