DealersEdge Professional Forums

Hey PMs,

How are you handling shop supplies, if at all? Each dealer seems different in what I've seen.
Currently, we have shop supplies spread out, some by tire machine, some fasteners in drawers in the shop, some tape and adhesive behind the counter, some batteries in the service managers office.

My countermen are constantly writing POs for shop supplies, no one ever lets us know what they need until it is out, and parts makes 0 dollars doing this.

I'm already planning to get together with the shop foreman of sorts (we don't have one declared) to mark out some of the top demand items so I can review them with a supplier.

What else do you guys do, or recommend I implement?

Thanks in advance.

When I order Shop Supplies from Napa (greases, lubes, zip ties, etc.) I code it to 242, then bill it on a counter ticket to Shop Supplies. If I get involved in the ordering, I/Parts should make money. As for running out, you'll need to figure out when it's out. For the "remote" items, whoever takes/uses the last of it should be telling you. Most of our stuff is spread out all over the shop also, but a lot of the nuts, bolts, and stuff are handled by an outside vendor. Hope this helps.

We create two counter tickets every month to the Dealership, one for shop supplies and another for cleanup department supplies . At the end of each month we close them out and start two new invoices for the next month. Depending on the circumstance , the system marks up 15% or the parts manager can override an sell at 0% markup . Everything goes 242. This way you can monitor what is being used .

All our shop supplies are in the tool room except brake clean, washer solvent, and gloves. I have one supplier for shop supplies and he is in every Thursday and keeps us supplied, hardly ever have to order something from any one else

Thank you both. I had a feeling most parts departments were finding a way to be compensated, and now thinking, duh, this can track demand too!

We keep a monthly shop supply RO open til EOM. 90% of the supply invoices from the outside vendor is billed on the RO at cost +67%. We try to keep a 40% gross profit number on internal every month. Look at it this way, if you sell a shop supply, is the shop marking it up and making profit on it? No. they. are. not. In just about every case month we've looked at, the percentage the shop charges on RO customer pay tickets exceed the amount we billed in shop supplies total. It's healthy for the whole store to make a decent GP in all areas. Same as when billing internal to the sales department. The profit you lose when discounting a set of floor mats (internal) does not get added to the sales price of the vehicle. Therefore, you've lost money.