Days Supply

[Kaju65]

What are some ways to reduce my 'days supply'? I've inherited an inventory and ours is twice what it should be and I need to reduce it. I already use my reserve dollars to help but that's going to take some time. Are there any other methods I should be using to help it along?

[smoyer]

What are some ways to reduce my 'days supply'? I've inherited an inventory and ours is twice what it should be and I need to reduce it. I already use my reserve dollars to help but that's going to take some time. Are there any other methods I should be using to help it along?

if your a gm dealer i used my pace money to self scrap old inventory it takes time but it helps

[camaroman]

I thought since GM had RIM we wouldn't have any obsolescence. Oh wait that was a pipe dream.

[smoyer]

I thought since GM had RIM we wouldn't have any obsolescence. Oh wait that was a pipe dream.

thats funny i use to be able to keep my inventory to nothing older than 10 months then along came rim

[olepartsguy]

I DO CSO RETURNS EVERY MONTH. 35% RESTOCK CHARGE. I HAVE A EXCEL FILE OF EVERY PART THAT IS RETURNED TO ME WHEN I ORDERED IT ON A CSO. I SEND BACK AT LEAST 12-20 PARTS A MONTH. I WAIT TILL THEY ARE 11 MONTHS OLD. I HAVE BEEN DOING THIS FOR ABOUT 5 YEARS NOW. I ALWAYS HAVE A 10% OVERAGE AT INVENTORY TIME. THIS YEAR IT WAS AROUND $32000. WHEN I RECEIVE THE PART BACK ON RETURN I SET IT UP IN A BIN LOCATION AND THE SECONDARY IS RETURN. I HAVE INSTRUCTED MY CREW TO LET ME KNOW WHEN THEY SELL SOMETHING IN THAT SECONDARY BIN LOCATION OF RETURN. WHY KEEP A BUNCH OF RETURN PARTS IN A PILE, TREAT IT LIKE A NEW SETUP. WHY THE EXCEL FILE? IF YOU RUN A" RETURN NO MOVEMENT" REPORT IT IS FLAWED AND YOU WILL RETURN RIM STUFF SOMETIMES THAT IS ONLY A FEW DAYS OLD. I ALSO RUN A SUPERSESSION REPORT EVERY MONTH AND I TAG BY DATE WHEN THE SUPERSESSION HAPPENED. I DO NOT WRITE ON A TAG THE SUPERSESSIONS AND THEN TAG THE OLD PART WITH THE NEW NUMBER. THAT MAKES IT NON RETURNABLE. GM WILL TAKE THE OLD NUMBER BACK AS OLD AS 11 MONTHS.
CDK HAS A DELAY NEW NUMBER FEATURE.

[Jaybee]

What are you looking at, too much width or too much depth? Two different animals. Depth, you need to work with what the manufacturer gives you. I would, of course work on it by age. Now if the problem is width, you probably need to visit your "days supply" settings. I inherited a bloated inventory a few years back. The manufacurer, (Honda), went from a weekly to a daily stock order. Unfortunatly the days supply settings were never changed. Now they never ran out of anything, but I felt we were tying up too much of "The Mans" money. Honda did actually provide with some pretty good calculations for R&R, even for using ABC sourcing, like I did. I reset all the settings to what Honda suggested. I did have to do some tweaking later, but I cut the inventory aroun 25%, without any stock shortages.
Hope this helps,

John

[Kaju65]

Thanks for the ideas!

[Madera]

The main question from me is what are your DMS settings on days supply and phase in/phase out. A lot of variables you are talking about.

If for some reason you are just trying to trim inventory, is it really excess?

Is it RIM protected?

Have you reset your sources to mirror what you want to carry and then see what rolls to NS and active?

Here to help....