Non-stock parts percentage

[scott2112]

Members of our dealer group are in Vega$ for a NADA parts meeting. They were told our Non-stock parts should make up less than 5% of our inventory (mine is 22%). Being on RIM, I don't see how that is possible. I ran a report to a list of parts and 99% are RIM one hit wonders. Am I doing something incorrectly? Do I need to make them active in 2101? sorry I am a Reynolds baby.

[partsguy99]

Members of our dealer group are in Vega$ for a NADA parts meeting. They were told our Non-stock parts should make up less than 5% of our inventory (mine is 22%). Being on RIM, I don't see how that is possible. I ran a report to a list of parts and 99% are RIM one hit wonders. Am I doing something incorrectly? Do I need to make them active in 2101? sorry I am a Reynolds baby.

If you're a GM parts department and have RIM, you can pretty much throw out any type of basic and sound inventory management.
They run the show.

[mdishong]

25.2 Here thanks to RIM. No way you can hit that mark being on RIM!

[Mike Nicholes]

There are two figures used for NS, Non-stock, evaluation. First is the number of part numbers you are testing (as Non Stock parts); this number should be over 50%; Second is the value of those parts that are coded NS in the system; in this case, less than 5% (dollar value) is a good number; sometimes people get the two figures confused.

to to www.partsconsulting.com, go to the downloads and download the checklist and key to the checklist; here you will find some useful data on numbers. The download is free, the forms were placed, by me, in the public domain, and can be used as you wish.

Mike Nicholes

[scott2112]

There are two figures used for NS, Non-stock, evaluation. First is the number of part numbers you are testing (as Non Stock parts); this number should be over 50%; Second is the value of those parts that are coded NS in the system; in this case, less than 5% (dollar value) is a good number; sometimes people get the two figures confused.
, go to the downloads and download the checklist and key to the checklist; here you will find some useful data on numbers. The download is free, the forms were placed, by me, in the public domain, and can be used as you wish.

Mike Nicholes

So with RIM, am I to change the status on these one hit wonders to active? Most of these parts proposals are generated from a CSO purchase and Voila, RIM say I need one.

[Mike Nicholes]

RIM is wrong; fight it if you can stay in compliance.

[possum]

RIM is wrong; fight it if you can stay in compliance.

BEST quote ever!

But resistance if FUTILE, and it just takes too much effort to fight it. I battled it for 10 years, everyone on this board knows I was a vocal protester. But all it did was give me anxiety. My owner understands the waste of capital, and that my management reports are way skewed by the NS, but he also agrees that as long as we're protected, it's better to just suck up my pride and play the game. It's still frustrating, but I don't let it bother me as much as I used to. I've got other things to worry about than something I cannot change.

[Zep33]

Toyota here - 4.66 and it will drop when I relieve this month's return once I send it back.

Difference between GM and a company that lets you run your own business

[scott2112]

RIM is wrong; fight it if you can stay in compliance.

BEST quote ever!

But resistance if FUTILE, and it just takes too much effort to fight it. I battled it for 10 years, everyone on this board knows I was a vocal protester. But all it did was give me anxiety. My owner understands the waste of capital, and that my management reports are way skewed by the NS, but he also agrees that as long as we're protected, it's better to just suck up my pride and play the game. It's still frustrating, but I don't let it bother me as much as I used to. I've got other things to worry about than something I cannot change.

I just find it amusing that GM forces a system upon us that goes against most inventory practices and yet you have people at NADA telling your dealer principal that our numbers are awful. You would think that the people at NADA would ask "are you are GM dealer, if so, go home our guidelines don't apply." After all, Rim has been with us while now.

I have explained to the principal that I am working the system as best as possible to stay compliant. Our monthly incentive bonus is roughly, 3-4k a month(smallish dealer). So, at the end of the year, there is roughly 75K of which they will use as straight profit and we will use our return reserves for cash conversion for another 10k. So, how much more juice can you squeeze out of this turnip?

[FixedManager]

Parts on-hand in NS status are financial killers; Technical Obsolescence. While RIM can and does add parts to your on-hand that may not meet your DMS's stocking demands my comparisons find 8% a good guide in well run GM stores. If you have double digit NS status parts you may want to look at your settings (too tight), revamp your special order system, and get serious about your lost sale postings. Heavy wholesale operators may need to train up Parts Associates and look at return policies.

Think about it from your owners perspective, I have "X" amount of dollars tied up in product that will be dumpster filler in 1-10 months. How often do you print out your on-hand NS parts and reconcile it? It's a great way to become more profitable with less work.