part status

[Neil]

Hi, I am a Reynolds user look for some ideas.
Fords new daily parts advantage program judges dealers in several areas. My current area of concern is fill rate. ADMI who handles the program for Ford states that fill rate is calculated by demand on blank status parts. If a part is blank status and we fill the order from stock this is a fill. If the blank status part is not in stock this is not a fill. Phase in is set at 3-9-3 or 9 with an average of .25. My problem is that parts will phase-in with a BSL of zero. I could tighten up the phase-in or increase days of supply all have problems. I am looking for some new ideas. Please assist.

[Chuck Hartle]

Neil,

A couple of things for you that we have so far learned. Several ADMI consultants working with our stores had us take all forced stock (those parts we put on our shelves that never qualified for stocking status and put them to "DP" status. Whatever the approach or "canned" way they are looking at idle capital in their DPA reports, this helped quite a bit. I can't totally explain it, but it by doing this it lowered the DPA percentage several points.

Also, your phase in criteria looks good, the last thing you would want to do it tighten it up. Based on what I know, Ford is looking for dealerships to build their "breadth" of inventory and maintain some healthy "depth" to improve overall customer satisfaction. Only time will tell, but I certainly would not tighten the phase in criteria anymore than you have it.

Chuck Hartle'

[jagman]

You may already be doing this but i would look
at some early phase in on items that have a
sales history of 2 in 12 months with a cost
od 65.00 or less and put them on a blank status and keep a file to review every six
months to check movement.also setting some
bsl items of qty 1 to a minimum of two using
the same cost factor.