RSG parts

[gordyw]

I'm fairly new to the parts managers job.Could anyone give me they're opinion on the Recommended Stocking Guide.Is it profitable to your dealership?If i do put it in,should I put all of these parts in 1 source? Thanks for any input you can give me!

[Richard]

We are currently stocking our new RSG parts in the blue totes they come in. So far, we have had 1 part sold in the last 3 months from the storage area. I would concentrate on the parts that you have that sell 1st, then IF you can put the RSG list in for less than you will earn for stocking the RSG, then consider it CAREFULLY. Make SURE you will be earning enough Reserve to return everything you ordered, plus your regular obsolesance. I have been working (fighting) RSG's for 3 years now. My last returns were almost 100% parts that were ordered for the RSG for Atlanta. I just got moved to Cincinatti, so now I get to send back Charlottes RSG. My biggest beef with this program? If GM really belived in it, they would make it 100% guaranteed returnable, with no hit against your earned reserves. It looks to me to be a good way to sell product.

[Robert a Bamert jr]

It has been my experience that the RSG list does not work for everyone. I've been to GM Parts college, which i only say due to the fact that it's the rare occasion where you get several Parts Managers and APM in one room together(tough room)and it seems from the talk that some dealers are serviced out of a PDC that does not reflect the area market sales for all of the dealers that it services.So in short a part number that moves well for you may not be moving well for the others serviced out of your PDC.
I would also HIGHLY RECOMMEND if you are new to the Parts Manager job that you look into being sent to Parts College the best thing that you will get out of it besides an Education is the conversation with others and what they are doing,,,,and of course Dealersedge forums lol

[mayotte]

You really have to look at what it will cost you to meet the guide and what you will get out of it if you do. I made a report generator report (R&R) that listed all parts on the guide that I didn't stock sorted by cost. Then I figured out how many more part #s I needed to hit the 90% of guide mark. Then I added up the total cost of the needed #s from the least expensive and up and found that I would need to add $900. to the inventory to get $2000. a month back. The return on investment made this one a no brainer. If I really want to cover myself on the increase in investment I could direct $900. from the first $2000. to a scrapping account to cover that increase and treat the rest as new income.

[Chuck Hartle]

Mayotte, that is great! That is the best way to look at the RSG. We had a rather long thread on this subject earlier last year that covered much of this. Not to beat a dead horse here, but it is my belief that if GM was so certain that these parts were going to sell that they would offer inventory protection on these selected parts and take them back without utilizing your valuable return allowance. Let GM put their money where their RSG is! This would be a real incentive for the small to mid-sized GM dealership to carry the part with that type of protection!

Chuck Hartle'

[garys]

I have been working the RSG for three years,
came into a Dept. that DID NOT use it, RSG
% was 74. Invested 8k$ and have qualified
every month, earning 1500-2000$. Yes it does take effort, but sales are up, inv. turns are up, ser. dept. is happier, stocking # count is better, hasn't hurt a bit !!!!