ADP Lost Sales

[drapp]

Here is something I do to combat some of what has been stated here. We post lost sales at the time of request. If later that same day the tech (customer) returns and we chase the part for same day repair we post a negative lost sale (-1). Our ADP system allows this and it will remove the previously posted lost sale. In this way the emergency receipt becomes the only activity for the part number on a given day.

For those of you on RIM - keep in mind the default RIM setting is 1 lost sale = 1/2 sale.

[This message has been edited by drapp (edited 07-03-2006).]

[kcatdeejay]

Gerry and drapp, I concur with both of your posts. We talked about this many moons ago in this forum, so I will repeat one more time what a 'noted' consultant once told me. He wanted a lost sale posted regardless of whether the part was picked up or not-smart, huh? This 'great thinking' extended to include even parts that were routinely ordered with no expectation of a lost sale. Don't know how many dealers this mental midget infected with this kind of thinking, but it's pretty scary, huh? The DP supported this guy without question-why not ? He knew more about golf than managing his own business.

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[Mike Nicholes]

I will add my support to the observations of Gerry, Drapp and Ckatdeejay (how come you guys never use your names?) and "ALMOST" wonder who the intellectual midget really was. To be sure there are some 'borderline' heretics out there.
Mike Nicholes

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[johnny o]

"I can have 20 parts managers and get 30 different opinions."

yet this should not be true or happening in our industry. We move forward with new technology yet have not solidified and understand a basic principle like LOST SALES ...

[kcatdeejay]

Mike-the name has been changed to protect the guilty. I know that other consultants are keenly aware of this individual who had diminished mental skills (nicely put?).

johnny o-long time-no talk to you. As usual, you don't give me anything to arm wrestle you about. There HAS TO BE some concurrence on this subject-PERIOD !

[cantfind12]

my take on lost sales stems from my days as a counter person in a retail store. Not to tell "back in the day" stories but we recorded "lost sales" verbally". I realize it is much more compicated than that but the premise is still the same. Not having the part is a lost sale. My brother works for a major vehicle manufacturer as a "Supply Chain Inventory Consultant" and when they run out of a part it is not considered a "lost sale." It shuts down production until someone supplies the part. Herein lies the parallel and the conundrum. Although they want to keep it "in house" they must keep the line going. Lost Sale? Delayed Sale? Deferred Sale? All I know is phones start ringing "big time" when production stops....
"

[ctvolvo]

Ooooh, I think I touched a nerve!

The point I think I was trying to make is that you cannot base your inventory solely on Lost Sales. Sure, they are very important, but you have to look at the overall picture. Petepuma01 is correct in his comment about increasing inventory value. While excess stock is inevitable, no one wants too much of it.

However one has to consider other aspects such as return allowance not received, cost of pick up the part, stock order ordering performance, etc.

While it seems that I disagree with the most vocal of you out there, what is important about Lost Sales is to record them in a fashion that works for you.

This is for Gerry,

Whether you were implying it or not, my inventory is not half junk, thank you very much. I think the issue with your inventory was having a previous PM who blindly ordered what his or her DMS said they should order each week. That is a problem.

Also, we have a store in our group that does not record LS and has a less tham 30% stock order rate, and a less than completely satisfied shop customer base. Constant special ordering is hurting their business. Would you really want that at the expense of not recording lost sales?

Believe it or not I do think it is possible to record too many lost sales. I did catch one of my counter guys recording lost sales for parts he was ordering for a wholesale account. Not really a lost sale in my book!

[pannityB]

Automotive News reports that regardless of the projections of some experts, August auto sales fell. Hurricane Irene and flagging consumer confidence are primarily to blame. Here's the proof: August auto sales fall below expectations, post-Irene. August consumer confidence slumped to 44.5, which is the weakest level on record since April 2009. Lost of sale sometimes happened when we least expected. So everyone must always be ready in every outcome.



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