Obsolescence GM Dealers

Obsolescence GM Dealers

Postby nbeckhart23 » Wed May 20, 2020 8:08 pm

What are some of you GM parts dept's doing about your obsolescence? Any creative ideas just throwing it away/donating it? We need to do a little house cleaning just looking for some ideas. Thanks in advance everyone.
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Re: Obsolescence GM Dealers

Postby onelap99 » Wed May 20, 2020 9:33 pm

How much dollar amount are we talking about? We're a small dealer and I have strategies that work well on small scale but probably not so much for larger dealers.
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Re: Obsolescence GM Dealers

Postby nbeckhart23 » Wed May 20, 2020 10:38 pm

We are a wholesale dealer we have around $325 thousand in a $1.5 million dollar inventory.
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Re: Obsolescence GM Dealers

Postby brparts » Thu May 21, 2020 12:38 am

you could try donating to a trade school or a collage that has automotive coarse. i did this several years ago and it worked out fine. dealer was able to take it as a tax deduction. check with your tax man, laws may have changed.
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Re: Obsolescence GM Dealers

Postby bsnyder723 » Thu May 21, 2020 1:17 pm

You can try putting it up on ebay, they take a bite out it fees but you can move it if you have someone can devote some time to it. You can also try Dealermine, they take a fee as well and you usually need to pay the freight to ship it. How much return reserve do you have, that's always an option. And lastly, bite the bullet and submit a CSO-11 return. It's a 35% hit and you can't send everything back but it helps get rid of crap that's just laying around. My DP lets us put the 35% fee to Parts policy so it doesn't kill our gross profit.
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Re: Obsolescence GM Dealers

Postby ehiatt » Thu May 21, 2020 4:03 pm

If you're on CDK you might want to check into their Cash Discovery program. They will match your obsolete parts up with other CDK dealers that will buy them at 50 cents on the dollar. CDK charges a 7% fee for the service. Not a lot of $ but better than having to trash it.
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Re: Obsolescence GM Dealers

Postby TheEd » Fri May 22, 2020 12:10 pm

I got very tired of the obsolescence services very quickly, between their rules on part numbers, fees, shipping costs, time spent in pulling, preparing and shipping, that "little bit is better than no bit" wore off very fast. There was also the side effect of now I showed a sale on that part that sat around for 17+ months and RIM is going to make me an offer I can't refuse. So either I accept the RIM part, it sits around another 15 months and we hope RIM doesn't conveniently forget it said it was a protected part, which they usually do, or I now have to make up that dollar difference in buying other RIM suggested parts.

Instead of messing with all that, I debit my Parts Adjustment account at the beginning of each month $1,000 and take to credit my General Inventory. Now I have up to $1,000 worth of GM parts I can just adjust out of inventory (no sale recorded) and trash. If I don't take all $1,000, the remaining difference will come up in a physical inventory as an overage. Currently I have $127.69 in obsolescence of a $200k inventory. We had over $16k when I started 4 years ago.
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Re: Obsolescence GM Dealers

Postby EH427 » Fri May 22, 2020 1:38 pm

I know this will not help now as you need to clean the store but this is how we run it and have no obsolescence.

We have a return bin that we put all the cso ordered parts that are returned to us in.
We know all these parts were ordered CSO giving us the opportunity to send them back with return reserve or use the CSO11 return process.
We then take our return reserve and return all returnable obsolescence for all stocking bins excluding our return bins in November.
We also put all the parts that say they are returnable but are not in a bin labeled NR.
We do this so my team and I know that this stuff needs to be scrapped or can be sold at cost as the returnable designitaing is incorrect for whatever reason.
There is always enough reserve to "clean the store's".
We then use the remaining reserve to return what is in the return bin and CSO11 the rest.
We wipe the return bin in December and January that way we know that all parts in the return bin are all under the 12 month purchase limit for CSO11 returns.
Some years we do not have to use the CSO11 process at all.
Every June we scrap our non returnable obsolescence including what is in the NR bin listed above when we book our inventory overage.
1 parts manager with no assistant, 13 countermen, 1.3 million dollar inventory between 2 gm stores using 2 dms's running under 1 bac with 2 seperate dealer codes.
A lot of work but it runs as smooth as butter, everyone knows what to do when we have a return.
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Re: Obsolescence GM Dealers

Postby Kdiperi » Fri May 22, 2020 2:35 pm

GM should be sued by all the dealer principals for the games with the RIM system . Between the STRIKE RIM return delays that everyone knows we got hosed of thousands of dollars of RIM return parts that we are stuck with to now the RIM returns being shut off since April 1 but yet RIM still keeps recommending MORE AND MORE inventory with calculations and new proposals . The entire system has cost hundreds of thousands of dollars to dealers across the country in the obsolescence only to have dealer relay their stock to these discounted programs , eBay and other programs like Cash Discovery Program. I been running my RIM Obsolescence calculations through the RIM app in GlobalConnect and in total between the strike parts for RIM return that i have NOT received applications for and now for the last 2 months im well over $20,000 worth of parts that we are essentially stuck with . I have NO faith that this will all be returned , as it is now when we are pulling parts for our tiny little return reserve we get now almost ALL are RIM controlled part numbers that are WELL past the 16 month .

"Effective April 1: GCUS-9-9294

RIM Returns Will Be Temporarily Suspended The creation of RIM monthly obsolescence returns will be temporarily suspended effective April 1, 2020, until further notice This will not impact your eligible return protection Any part eligible for return will generate as normal when processing resumes Changes to RIM obsolescence eligibility at a customer level, based on PASE terms changes, will be resolved on a case-by-case basis"
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Re: Obsolescence GM Dealers

Postby urmiakter » Sat Jun 27, 2020 6:53 pm

:) Nice info. check out for more cleaning info
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