A preponderance of incompetents

[chucker]

Just got done reading the article by Mike Nicholes with great interest. I wouldn't arm-wrestle him over anything he states. Is it me or are there large numbers of incompetent parts managers out there?? I'm referring to parts departments with high obsolescence, no order posting (just receipts),poor housekeeping, inability to pull a proper return, no customer numbers and sales formulas for wholesale cash customers, and purchases based on solely on prize points and trips instead of dealer profit. One more question-how do they keep their jobs ? Any comments or ideas.......?? Thanks again for all the input I have received. It seems to be virtually unanimous that the existence of poor performing parts managers falls right in the lap of the guys that hired them. They seem to have no clue about how a properly run department shows itself. How about a few of the following goodies:
1) Dealers that only look at months no sale. I know of one dealer group that hung their hat almost exclusively on that idea. I tried to tell them that their plan was quite easy to disable but they would have none of it. They actually thought that some of their biggest pig-styes called parts departments were truly maintaining this standard. If they had ever practised a little MBWO (management by walking around) they could have easily seen that nothing could be further from the truth. Their respective parts managers had merely found out how to restart the parts aging clock (we all know how to do that don't we?). I refused to do it any other way but the right way....they seemed annoyed...can you believe it???

2) How about hanging your parts fortunes on nothing but a monthly lost sales report?? Could this be a contributing factor to why the dealer has inventory unsold on the shelf since 1988??

3) Anyone out there ever run the car dealers marathon?? That's the race where the guy who takes the longest to run the race is declared the winner. I think it takes an extremely talented individual to work 60-65 hours per week and have a $50k inventory shortage, no monthly excess return for six months, 13% of inventory over 12 months no sale, overnight freight charges up to here, and the department in terrible condition all the while the dealer is applauding his "hard work". I'll be back. I always wanted to do what Chuck Hartle and Mike Nicholes do...it's just very hard to reason with people with this kind of thought process. Talk to ya'll real soon...I need to vent often.

[This message has been edited by chucker (edited 01-21-2003).]

[This message has been edited by chucker (edited 01-21-2003).]

[Parts007]

First of all, it sounds like you are describing the parts manager I replaced.

Here are some examples: 30% obsolescence, items in the inventory that are 196 months old. Now that I think about it, everything you mentioned above describes the parts department I took over!

Why was the previous manager there so long (15 years total, 5 as manager) when the dealer knew he was a poor manager? Was the dealer comfortable with the situation? Did the dealer like a "yes" man? Was the dealer afraid of getting someone worse, or not finding anyone at all? Every time a new person starts, there is always a period of adjustment.

I am afraid there are not many competant parts managers out there. How does a dealer know which applicants are competent or not? Everyone should have an impressive resume ready. Where is the formal training for our profession? This previous manager was sent to 3 different parts management seminars. He didn't learn anything, or certainly didn't apply it in his department!

I learned everything by sticking my nose out any asking questions, as awkward as it was. Now I am in a situation where other local managers call me for advice on everyday issues. I go out of my way to help them, because, what goes around, comes around. Someday I will need help somewhere, and I hope someone will be there for me. But I certainly still have much to learn about this industry. I am an active member of our local GM parts managers club. I use this to stay informed, and to meet other, more experienced managers.

Did I actually give you any answers, or did I just throw you more questions?

Tony

[ferris]

I'm convinced the real problem is not the incompetent Parts Managers. The problem is the incompetence in upper management outside the Parts Dept. Not many of them would know a healthy Parts Dept even when they actually had one. Even further, I don't know if any manufacturers or their reps know what it takes to run or analyze a successful Parts Dept.
I think you are correct when you say there is a shortage of competent Parts Mgrs unfortunately there also seems to be a shortage of competent "real world" training and guidance.

[Parts007]

"The problem is the incompetence in upper management outside the Parts Dept." Highlight that, BOLD Italics, whatever!!

Yes Ferris. A point which I missed, yet I agree with fully.

Example.... If I had faster windows ready, internet accessable computers in my parts room, our department would be more efficient. Think about it, word processors, spreadsheets, multi-tasking....anything to be creative. Heck, we would be able to use the D2D link my department has been paying for. The boss doesn't see that.. He saved $500 on a used computer for our department that is not even internet capable.

I can go on, but I won't. Goodnight , Tony

[Vernon]

Ferris I agree with you 100%.In most cases we often in the parts industry get the Nike slogan speech "Just Do It".Most owners/GMs,not all only read the statement numbers and often believe parts and service in general are necessary evils that are required to own and operate a new car dealership.If they would only understand that although vehicle sales are the most vital function of the business,they are often selling vehicles in the front in and making money in that department while at the same time they don't realize how much they may be pissing away through the back at the same time by ignoring those problems you outlined in your post above.Most owners have come through and by the dealer business via vehicle sales route and don't have a clue as to the day to day operations of the parts and service departments.Not to mention the ever changing manufacturer processes and programs that often do not work.No wonder there are so many of these dealers sitting on time bombs.Just my thoughts

[Gator]

It is my understanding that Mr. Nichols has never worked in an automobile dealership, let alone the parts department. It's different when Michael Jordan says "Just Do It!" from when Dennis Miller says it about basketball (or football in his case). You cannot truely appreciate the true requirements of being a parts manager, until you have done it! [Read quickly before the Mike Nichols fan club at DealersEdge deletes this ... ]

[ferris]

I have heard MNI (Mike Nichols)criticized many times in the past 5 years but the criticism has always come from someone other than the Parts Manager. Usually it's factory reps, GM's or Service Mgrs.
I don't use or agree with all they profess but until MNI came along any Parts Mgr training was weak and basically nonexistant.
I welcomed MNI's input and training five years ago. No one else was offering much.

[chucker]

I'm not done on this subject yet, gentlemen, but just wanted to say I appreciate all the responses I've received. This is very near and dear to my heart. It seems that the position of parts manager can simply be filled by a warm body (according to some). I wonder if that's the only criteria dealers use when hiring someone to manage their own personal financial affairs. If so, I wonder what they would say if they walked into the office of that person and found their investment money was just sittng there and had been for some years. I always looked upon myself as an investor for the dealer and feel I gave him a good return on his investment while in the managerial postion.

[eric the red]

I believe that many dealers do not understand parts and refuse to learn. Thus, the controlling factor when hiring becomes the proverbial bottom line and attendance.

[Chuck Hartle]

Ferris,

Well put.... Mr. Nichols got parts managers thinking outside the box back in the 80's and it has continued. I am going to leave the "TROLL" posting by Gator.

Mr. Nichols, like many of us in consulting, put his views out with his name behind it, for better or worse. Gator can't even register and acknowledge who he is....

HMMMMMMMMMMMMMMMMMMM....

Chuck Hartle'