RSG complience????

[Stephanie]

I'm new to this so I'm not sure if anyone has addressed this problem yet. Is anyone else having a problem meeting the 90% for RSG without adding alot of non-moving parts to their inventory?

[Mark Homesley]

Stephanie,

We are a Pontiac, Cadillac and Olds dealer. When we first went on the RSG system, we had to add about $1200 worth of parts. When GM went to the multi-line RSG, we had to add another $800. You may want to source all your RSG parts together to keep track of them. We are on ADP who offers a program to manage the RSG but I didn't think it was a good value so I do it manually. When GM does the quarterly change it does require some number checking but all in all not too time consuming when you consider the potential for return.

Mark weidner@richnet.net

[Mark Homesley]

Stephanie,

To answer your question, we average about 93% on our RSG with RSG parts composing:

>12 MNS $1390

> 9 MNS $2059

Mark

[mickey]

Stephanie,
As parts manager of a Chev-Buick-Olds-Pont store I stocked the RSG for almost 2 years. The parts were tracked in their own source so that we could better manage their status. After careful review of our obsolescence (no movement in 12 or more months) it was apparent that the majority of my non-moving parts had been from that original RSG order! I have found that the Return Reserve generated by the RSG orders wasn't even enough to return the slow or non-moving stock.

I've had two different Parts Reps (excuse me.... Market Area Managers)try to tell me that since the RSG went "multi-divisional", I wouldn't have to stock nearly as many numbers to meet the 90%! Where in the heck do they train these people?? Before going "multi-divisional" I would have needed to order about $2,500 to hit 90%. After the RSG went "multi-divisional" I was almost $8,000 shy of hitting 90%.

After "dumping

[Stephanie]

Mark,
You are the first person to tell me they are meeting the RSG and selling the parts. Most of the people I have talked to have been like Mickey and have been unable to move alot of them. My parts rep seems to think it is because the list is not specific enough to our area. I just recently took over and would like to put all my RSG parts in their own source, but am unable to due to the fact that the previous manager set up a price 6 source in ADP which is connected with service so that certain parts sell out at a perticular price. I too used ADP's RSG tapes for awhile but found them useless.

[Rex]

Stephanie,

This is an example of what I was trying to show in another thread. Sourcing is used by the computer mainly for ordering and pricing. In this case, you have some parts in a source because of a pricing consideration. Now you want certain ones in another source because they are RSG.

If you had for example 4 sources for pricing, 3 that have to do with ordering, and you want RSG sourced separately, that's not 8 sources, it's 24 (4X3X2).

If you want the RSG parts flagged only for reporting purposes, you could put something in either the COMMENT or MISC fields, then have the report look for that.

If you are interested in custom programming relating to this, send me an email.

Rex

------------------
www.powerprograms.com

[Bob Smith]

Hello all...

As with Mark, we are maintaining a 92 - 93% level of RSG. We are multi divisional with Buick, Pontiac-GMC and carry $34,021 of RSG currently.

Our over 12 MNS is $1,902 (5.6%)
over 9 MNS is $2,644 (7.8%)

When the RSG first came out we stocked only the Buick list but I then decided to also stock the Pontiac and GMC lists based on the fact that these were the "top sellers" in the area for these makes.

I haven't been hurt yet. I realize that 7.8% over 9 months is still $2,644 that I could use elsewhere, but it's nice to get a rebate of over $1,000 a month that goes towards your gross too!

I was not too concerned with sourcing these items based on the fact that they were RSG. I treat them like any other item and move them out or in based on movement. When a new quarter rolls around and the over 12 MNS parts are no longer RSG, which will more than likely be the case, I'll send 'em back.

Probably not too much help for you - just a little info on our experience witht the RSG.

[Robert a Bamert jr]

hello all,i've been meeting the rsg list now for the 2nd yr.We have Buick,Pont.,GMC Truck,and Med Duty.Its been tough mostly because i've found and proved to my rep.(market area ? )that the computer does
not always pick-up what you do have on-hand,i've even got them to crt me , with copies of my inventory.obs hasn't been
bad for my list or area.personal i think it can work,work being the key word,but its def.
not for everyone.i would also like to add that this keeps GMs' obs down wouldn't you
think? good luck

[DMuller]

Stephanie,
I agree that RSG is non-sense but, it is a required element in receiving the CFI monthly credit. This credit is worth almost $40,000 a year to my department's bottom line, which is what I get paid on. Am I willing to give up $40,000 because I don't want to stock a couple thousand dollars in obso parts...NO WAY! I know my Dealer Principal agrees. Look at the bigger picture. RSG is a necessary evil that GM is not ready to get rid of anytime in the near future. Therefore, take advantage of the extra cash wile they still offer it.

Dan

[This message has been edited by DMuller (edited 03-09-2000).]

[kyates]

STEPHANIE,

I HEAR ALOT OF PARTS MANAGERS COMPLAIN ABOUT THE RSG LIST. AS THE MANAGER OF A SIX-PACK STORE (CHEV-OLDS-CAD-BUICK-PONT-GMC) MY RSG LIST IS IN EXCESS OF 1200 PART NUMBERS. IN THE LAST TWO YEARS I'VE ONLY FAILED TO MEET THE MAGIC 90% NUMBER TWICE. WHILE TRACKING IT FOR TWO YEARS I'VE SEEN MY TOTAL RSG NUMBERS GREATER THAN 12 MO. TO STAY BETWEEN 800 TO 1300 DOLLARS. CONSIDERING MY INVENTORY OF 500,00, IT'S A VERY MINIMAL FIGURE AS YOU CAN SEE. AND IT'S BEEN AMAZING HOW MANY PART NUMBERS THAT WE'VE NEVER SOLD BEFORE ACTUALLY STARTED SELLING AFTER ADDING THEM TO INVENTORY. I STILL THINK GM NEEDS TO DO A LITTLE TWEAKING ON THE LISTS, BUT OVERALL IT'S BEEN GOOD FOR MY STORE.
P.S. WE'RE ON REY&REY AND I DO SOURCE THOSE RSG PARTS SEPERATELY.....