ADP Lost Sales

[Mike Nicholes]

OK, here is what I know about lost sales posting and where it comes from. Over the years I have collected data from thousands of dealerships, all types and kinds. The average (and that is a word I disdain) is 2-3 per man per day. I maintain a select base (not for statistical purposes, but for what can be done when the best are at it) of 105 dealerships; the best of the best. They are getting 5-8 per man per day.

The real answer is "post all lost sales" and dont' worry about the numbers. The posting must become part of the culture. The countermen are pretty intelligent; they just need a reason for doing the posting, teach them why and measure it every month. Post the lost sales posted daily, weekly, or monthly on a bulletin board. Remember, it is not the existence of lost sales that is a negative indicator of performance. It is the absence of lost sales that is negative. Track and trend them long term and you will usually see an increase in them, month by month. Never pay someone extra to post them; I saw this done once and it was a disaster. Hope this helps.
Mike Nicholes www.partsconsulting.com

[CMG]

THANKS MIKE,

THOSE WERE THE NUMBERS I WAS LOOKING FOR.

[cantfind12]

Please don't hammer me for this response since I am new to this thing called parts. I guess my interpretation was what qualifies a "lost sale." If I am in display function and show "part not on file" how does that effect lost sales unless I go into a function which would record it. Is there a setup to prompt for lost sale in inquiry?

[chartle]

cantfind12,

Who would hammer you? This is an information exchange forum. When I do seminars, I try to avoid getting on the subject of "Lost Sales". I can have 20 parts managers and get 30 different opinions. The way you post lost sales can have a profound impact on your phase in guides and days supply settings depending on how liberal or how conservative you are in your posting habits.

Enough said.... By the way, you want to go to OSOP, Option 8, to turn on/off the lost sales prompt in function I and PRO.

Chuck Hartle'

[cantfind12]

Thanks for the response and alleviating my fear of asking dumb questions. So I will ask another question and not consider it dumb. I understand the premise of being in a "live" invoicing fundtion (I or Pro) and having the prompt on for a lost sale. But what if someone calls or walks in and you are in an inquiry function where you show no stock (aka not on file etc) and your counterperson just replies in that fashion. This could happen many times with several different counter people and unless they are on the ball the demand is never recorded as such. I can also argue that it may not be a good representation of demand unless someone is willing to get to the point of purchase and there is no stock. I may not be explaining this correctly so if there is any confusion I will try again. Also you mentioned seminars....how does someone get involved in that? Thanks

[CMG]

Can't Find 12 .
We use the saying that if the customer is ready , willing and able to buy the part and is unable to wait it is a lost sale.
if we pick it up locally it is not lost. If we order it from depot it is not lost. It is only if the customers says No thats ok i will go look elsewhere.
The key is the parts staff have to ask for the Order and the customer will either say no...the price is too high etc then its not posted as lost cause he wouldnt have bought it if you stocked it.
I also recomend the countermen manually track rather than prompted on computer. They add it on to a lost sales quote .
This way i can see who is recording what as well as i dont get those wierd postings of lost sales of 3 insteard of enter.

[Mike Nicholes]

CMG: Your definition of posting and tracking lost sales is one of the most clear I have read, including many from non-parts managers. I agree, in principle, with what you posted.
Mike Nicholes

[cantfind12]

CMG. thanks for your reply and I agree. However, my question is academic as well as practical. If I go to Wal-Mart to buy an oil filter which they don't have their register can not record the lost sale because it is in invoicing mode (as it should be). This does not mean I wasn't ready able and willing to buy the oil filter there. Is that transaction recorded without inquiry (aka parts inquiry). To head off Mike's response you cannot record every possible question of availiblity. Asking and committing are two different things. But I will say this, in my experience, everyone goes to Wal-Mart. People who go to their dealer are usually more commited to their purchase. So is there a function in Inquiry to record lost sales? Thanks again.

[jazdale]

cf12
Which inquiry function do you use (I/PRO/DS/DL)?

I and PRO will prompt for lost if turned on in OSOP #8.

DS will, if you use function S (Sell).

DL will not prompt for lost.

I like your Walmart reasoning. Makes sense.

[ctvolvo]

If the part is not in my stock, it is a lost sale, even if I purchase it elsewhere.

It is not going to affect your stocking levels if the LS and sale are in the same month. If it does, you need to check your stocking parameters.

ADP has the easiest way of posting LS, R&R requires extra steps. We are new to R&R and I am having a tough time with my guys to post all LS. They were always good before! I guess it will take us a little more.

As for the Wal-Mart reference, I have a part time job at a retail establishment that caters to outdoor enthusiasts. What I find frustrating is that I can not post a LS when a customer asks for something we do not have. Some corporate guy is making decisions on what we should stock without knowing our local conditions.

At least at the Dealership I have control over my inventory.