Any set rule as to how many sources you should have? Can you have too many sources?
I am about to take over KIA parts on Reynolds and any input would help.
Thanks
Sources
5 posts
• Page 1 of 1
Sources
by Ronc925 » Sat Mar 22, 2003 1:18 am
As long as you have a reason to have the source, it is justified. I have had as many as 26 sources for one car line.
You should have at least 1 general source, 1 fast moving source, one collision source and one accessory source for each manufacturer. You may wish to further divide any of those sources depending on need. For example, for me to make fixed pricing based on cost averaging, I divided my mechanical parts into many sources so I could batch price the selling price. IE, all my OEM reman starters sold for the same price; the reason was it was quicker and easier for service advisors to quote the price, and I had a local supplier doing the same thing.
You should have at least 1 general source, 1 fast moving source, one collision source and one accessory source for each manufacturer. You may wish to further divide any of those sources depending on need. For example, for me to make fixed pricing based on cost averaging, I divided my mechanical parts into many sources so I could batch price the selling price. IE, all my OEM reman starters sold for the same price; the reason was it was quicker and easier for service advisors to quote the price, and I had a local supplier doing the same thing.
- Ronc925
Sources
by jazdale » Mon Mar 24, 2003 7:29 pm
Very subjective to the level of detail you desire and whether that same want for detail is shared by your staff.
Careful that you don't create an albatross that only you understand.
Reasons for a break-out of sources.
1. Some manufacturers don't split their parts into sources, others use up to 9
2. Competitive VS capture for price levels. Some even finer for common maintenace items to assist menu selling.
3. mechanical and body.
5. By gross profit difference in cost and list (Ford comes to mind with their accessories)
6. By distributor (ford vs motorcraft)
7. Year's sales demand for stockorder
8. Stockorder clean up - moving parts with demand to a source that you never wish to order as stock.
9. Systems that don't have a price-break-escalators setup may have a large array of sources to break parts down by cost.
10. parts that need special accounting considerations such as oil
11. taxability
Careful that you don't create an albatross that only you understand.
Reasons for a break-out of sources.
1. Some manufacturers don't split their parts into sources, others use up to 9
2. Competitive VS capture for price levels. Some even finer for common maintenace items to assist menu selling.
3. mechanical and body.
5. By gross profit difference in cost and list (Ford comes to mind with their accessories)
6. By distributor (ford vs motorcraft)
7. Year's sales demand for stockorder
8. Stockorder clean up - moving parts with demand to a source that you never wish to order as stock.
9. Systems that don't have a price-break-escalators setup may have a large array of sources to break parts down by cost.
10. parts that need special accounting considerations such as oil
11. taxability
- jazdale
5 posts
• Page 1 of 1
Who is online
Users browsing this forum: No registered users and 11 guests