I've enjoyed reading the posts here over the past several weeks. There are some "excellent questions" and a broad set of expert opinions offering "excellent solutions."
I'm especially impressed with the technical solutions offered from the computer companies - ADP, R&R to be specific. Thanks guys!
I was victimized as a young parts manager by the lack of "solutions" offered by the professional parts training programs. Our dealership was one of the early participants with the MNI program and I'll give credit to Mike N. as the pioneer who defined most of the parts issues in the late 70's and also today. However, that being said - I decided to take a different path with inventory control. A "Simple" path.
The first thing I scrapped was "gross turn & true turn formulas." The second scrap was "fill rates and level of service." Then I scrapped the entire formula and averaging process for measuring my own inventory results.
I created a simple solution to define my inventory based on the shelf mix. Mix is nothing more than parts stocked based on sales history.
Over the years I've heard dealers and parts managers brag about having a fill rate of 90% to 95% (and a little higher) -- but I've never seen one of these inventories first hand.
I've held a number of "Parts made Simple" classes this year in middle Tennessee and Kentucky. In the class, I stress my personal preference of stocking a "60 day supply"; "eliminate the lost sale report"; and "don't use fill rates and turn rates as the ultimate goal.
Your secret weapon is the "Inventory mix."
The mix is nothing more than management by exception -- how many parts in your inventory don't qualify in your mix strategy.
When you have a good mix, all the formulas will fall into place.
99.9% of those who've attended my classes agree!
If you want to test the "fill rate" and "turn rate" approach on this board, just post 2 simple questions:
1. How do I improve my "fill rate?"
2. How do I improve my "turn rate?"
Thanks for reading -
Tim Deel
partsmadesimple@cs.com[This message has been edited by Partsmadesimple (edited 06-13-2001).]