Vehicle Inventory Management

[Scott Dreisbach]

Today's technology allows for a vastly improved method of totally integrated vehicle inventory management. For more information on the best system out there, contact Scott Dreisbach at sdrize@aol.com

[scotstrong]

Just a reminder that these forums are not to be used to promote products or businesses.

[blosserma]

inventory (especially new) is becoming a large issue. It is not being seen as an issue due to low rates and extended int credit periods. bad habits are created in good times. A process should be established in good times to mesh the art and science to control inventory and make it that much more profitable - stock what turns fast, limit variety and stick to a pre established days supply and adjust DAILY.

[CroweChizek]

Would anyone like to open a discussion on best practices for new and used vehicle inventory control. Are inventory control programs being used? Is a good inventory manager all that is required? Can a good inventory control manager be even better with new tools that are available? What have people found that works? And what have they found that doesn't?

[bdrize]

Blosserma is exactly right. The key to increasing the turns in the vehicle inventory is to know exactly what you need and install a "pull" methodology and process as opposed to allowing it to be "pushed" upon you. Each purchase in treated as an individual investment and measured accordingly. This holds true for both new and used vehicle inventories.

[jdaniel]

I have often been amazed at the lack of real vehicle inventory management and analysis in most dealerships. It is getting better, but I still believe that the average parts manager has more and better tools to analyze and manage his/her inventory (and uses them better) than the average sales manager. Of course, the manufacturers have to build the cars we (and our customers) want and need before we can make much progress here- but they always listen to us, right?

Jack

[Blosserma]

"I'm from the factory and I am here to help you!" Not quite! Although the factory is getting "better" at providing information, it still leaves a lot to be desired. Jack, you are right about parts managers. Inventory managers have to start treating the inventory as an investment and treat the spots on the lot as service stalls - what is our stall efficiency for every stall (vehicle) out there. The dealer is paying "rent" (interest) on each stall - it needs to be maximized with the units that are selling. I believe that is how RPM works to save significant floorplan expense.