New, Hoping for some guidance and help
Posted: Sat Oct 31, 2015 2:02 pmFirst off I would like to say that it is great to join a forum like this and I am looking forward to the help that will be getting.
A little on me and the place that I work, I am in my late 20’s a few years’ experience in the parts world with many years’ experience in the customer service world. I am new to the Manager world in this aspect. I live in Eastern Canada and work at a family owned Tractor dealership specializing in one line with many different lines of implements, ride ons, and small engine equipment. Prior to myself becoming manager there was no one in this position. While I was a parts associate one guy was hired who left very quickly and it had been 2 years since the last one left. In that time frame the parts managing feel to the GM of the business. Inventory was last completed 4 years ago (I have since completed one and it was a battle of ego’s). The mentality of the dealership prior to myself becoming manager was to stock lots and sell not a lot of it. IE: lots of aftermarket belts that have been here for roughly 4 years and maybe an 1/8 of them have actually sold. The idea is as per the Gm when the customer comes in we will have what they need, great thought and I like it but our parts department does not consistently come ahead at the end of the year. Currently out the inventory that we have 53% of what we have has not moved in 12 months and 48 months no moves is 36%. The way I view that is a lot of dead inventory. It is currently myself and the owners son working the counter.
Things I have started to do:
1. Created an Excel spreadsheet that tracks A) total parts sold, B) gross Margin, C) contribution margin, D) fill report broke down via Primary line vs. total, E)Turn ratio primary line vs. total, and this all broke down by the month so I can update at the end of each month but I look at each of the listed at least once a week.
2. Started to reduce stock, although this is a battle with the owner/GM wants to have all that dead stock (to a degree) so customers don’t leave empty handed.
3. Completed and inventory, and going to implement a rolling inventory.
What I am missing on what I should be doing your help and guidance is greatly appreciated. If you need questions asked please ask and I will see what I can do.
Thanks
Crash006
A little on me and the place that I work, I am in my late 20’s a few years’ experience in the parts world with many years’ experience in the customer service world. I am new to the Manager world in this aspect. I live in Eastern Canada and work at a family owned Tractor dealership specializing in one line with many different lines of implements, ride ons, and small engine equipment. Prior to myself becoming manager there was no one in this position. While I was a parts associate one guy was hired who left very quickly and it had been 2 years since the last one left. In that time frame the parts managing feel to the GM of the business. Inventory was last completed 4 years ago (I have since completed one and it was a battle of ego’s). The mentality of the dealership prior to myself becoming manager was to stock lots and sell not a lot of it. IE: lots of aftermarket belts that have been here for roughly 4 years and maybe an 1/8 of them have actually sold. The idea is as per the Gm when the customer comes in we will have what they need, great thought and I like it but our parts department does not consistently come ahead at the end of the year. Currently out the inventory that we have 53% of what we have has not moved in 12 months and 48 months no moves is 36%. The way I view that is a lot of dead inventory. It is currently myself and the owners son working the counter.
Things I have started to do:
1. Created an Excel spreadsheet that tracks A) total parts sold, B) gross Margin, C) contribution margin, D) fill report broke down via Primary line vs. total, E)Turn ratio primary line vs. total, and this all broke down by the month so I can update at the end of each month but I look at each of the listed at least once a week.
2. Started to reduce stock, although this is a battle with the owner/GM wants to have all that dead stock (to a degree) so customers don’t leave empty handed.
3. Completed and inventory, and going to implement a rolling inventory.
What I am missing on what I should be doing your help and guidance is greatly appreciated. If you need questions asked please ask and I will see what I can do.
Thanks
Crash006