body shop question

[cain12]

I asked this on the parts board, thought I would ask you guys. When you order OEM parts from another dealership (we are Chevy, so we have to order from Toyota, lets say), 2 questions:

1) who orders the parts? is it parts department or someone YOU pay?

2) do you have to split the profit with the parts department?

[GMFXDOPSMGR]

At the store where we had a Body Shop, all parts went thru the Parts Department. We we split as GM suggested.

[zekensted]

A local Nissan dealership had a very busy bodyshop, but it was closed because it did not make any profit. It seems the body shop manager ordered all of the non-Nissan parts needed but did not get paid on any of the parts profit. Also, the accounting office did not credit the bodyshop with any percentage of the parts gross profit they generated. So, when the body shop manager needed to discount, was it any suprise that parts gross got cut? And, now that the body shop is closed, the parts manager is in trouble for not generating enough gross? Hmmm...

[CHADP]

Hello, I was the Parts Manager for my dealership for the past 14 years. I am now the Fixed Ops Manager. In my opinion, not only OEM parts but ALL parts (aftermarket,used,reconditioned,ect.) should be ordered through parts. Yes you'll have to split the profit but they are the ones who know how and what to order best! Our process works this way:
First-the Body Shop Manager makes a copy of the estimate and the repair order to give the parts dept.
Second-The parts dept orders all parts associated with the job. The body shop manager should have the aftermarket,used,or reconditioned suppliers listed in his/her database. The parts dept should issue a purchase order to any associated supplier. When the parts arrive they can either be delivered to the body shop or the parts dept. The most important thing is whomever receives the parts should check them in against the invoice or packing slip to insure you have everything.
Next-the invoice should be given to the parts dept to bill out on the repair order.
This process also makes the parts dept responsible for any returns of incorrect or unnecessary parts.
Also keep in mind that most parts guys/gals know which dealerships are going to give them the best discounts which helps your profit numbers.
The body shop manager and the parts personnel should both be paid on the profit. If you are a GM dealership it will be in the parts transfer column. Body shop and Service can be separated.
Lastly remember that it is a team effort. Yes you'll have to share in the profit but you'll save your body shop manager the stress of keeping track of where everything is coming from. All he/she has to do is call the parts dept and see where the parts are for a particular RO or when they will arrive. After all, that's what parts people do! They order parts and inform you when they are here!
Again, this is merely my opinion but it has worked well for us the last 14 years or so. If you have any questions feel free to drop me an email. Oh,by the way, I would like to add that I enjoyed the Parts side of Fixed Ops alot more than the Service side. At least for now that is.

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