Daily Sales vs. Phase-in Phase-Out

[jdpetey]

How many people out there base their new parts for stock on daily sales records?

I have recently changed employers to a new dealer where the MGR reviews daily sales data to determine possible stock items and it seems that it defeats the pupose of phase-in & phase-out setups. Some items may throw up a red flag to check application, but to stock or not doesn't seem to be the first thing to question. Sure, some items may warrant an observation, but it almost seems the same as Scientifec Wild Ass Guessing (SWAG). Which is worse?

jdpetey

[Chuck Hartle]

I guess it all depends on your priorities and how well the inventory is performing. Wouldn't every parts manager like to look at his parts sales daily to determine stockability?

By the way, YES, it does defeat the phase-in criteria setup. However, depending on the system you have it is always healthly to 'check-out' possible early phase-in for parts that are spiking.

What I am getting at is with the ADP system you have a phase-in criteria that is based on months sales instead of pieces. In other words, if you have a phase-in criteria of 3 months sales in 12 months, you could sell 50 in 1 month, 50 in the next, and until you sell 1 in the third month it won't phase-in.

ERA allows an early phase in setting in program 2323 to help overcome these spikes.

Two simple observations I see here without knowing all the details are

a) If the inventory is performing well based on obsolescence, days supply, and width, then it is working for him.

b) Doing it daily is probably overkill. And, depending on the computer system the dealership has, he could be working a lot harder for the computer than the computer is working for him.

Any more detail you can give would be appreciated.

Thanks,

Chuck Hartle'


[This message has been edited by Chuck Hartle (edited 08-31-2000).]

[This message has been edited by Chuck Hartle (edited 08-31-2000).]

[Roon]

Daily attention to the Phase OUT side can pay big dividends, particularly on slow items which sell only in one season. Those parts may be sitting on AP status - sleeping. When they wake up, the first sale will result in AP with zero on hand. And you will wait to the END of the month to look at the MGR report in ADP. Sold it on the first day of the month, and found out about it 30 days later. And you do want another - and would have reset your status to blank if you had seen it that day, based on what the part was. Make a nice ENG stmt on movement sources with slow components looking for AP with zero on hand. Add a bin in the search if you have non stock in that source. Make it sort in descending order of year's sales - winners mostly at the top - losers at the bottom. Add a bunch of history to make you feel good.

The trick is to micro manage the slowest of the slow.

As a last thought - you can also tighten up your AP way beyond what you might normally set it at - and will end up managing slightly more parts [the ones that need it]and have way more right parts on your shelf for seasons more days of the year.

[Chuck Hartle]

Ditto!!!!!!

I like your thinking Roon.........

Chuck Hartle'

[jdpetey]

Chuck,

We are on an ADP system. I have been trying to work it as much as possible, but manipulation by me at the current time is limited due to the fact that I am not the MGR. I understand most of the ins and outs of the ADP system, but my current situation is somewhat restraining.
I understand the "spiking" concept. Noticed it a while ago. Somewhat of a juggle to filter possible productive parts.
I am just making some observations on different practices. I've known at least one other manager that ran reports of daily sales to pick up new parts. Some of them don't seem to utilize the STK feature to it's fullest extent, thus creating more work.
I didn't realize he was running this particular report until I added a couple mechanical parts to the system and posted a lost sale or two and suddenly they came in for stock a few days later. He had ran his report and saw a sale (Lost) and ended up ordering the part after one hit. Since then I have to watch what I enter.

Roon,
I thought of the AP scenario along time ago and came up with the idea to put the SS field right in the display screen to catch these parts as they sale and filter out prospective profit makers and also discount parts that I know we may never sell or end up returning due to application.

There's many ways to skin the cat.

Thanks,
jdpetey

[Rex]

Here's my personal version of micro-management for slow movers:

A special program in my Saturday job stack changes AP parts with any sales in the last 12 months to NS.

I have a set of sources with a phase-in of 2 in 9, a set with 3 in 9 and a set with 4 in 9. All parts start in the 2 in 9 sources. When a part shows up as new qualified on the stock order, I make the decision at that time to bring it in, or change it to a tougher phase-in (and back to NS), or just 0 it on that stock order and let it keep appearing. Besides the normal things such as number sold, 1st yr/last yr, type of part, etc, I also like to look at who bought the part.

In other words, I use the stock order review as my micro management process.

What do y'all think?

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

[Chuck Hartle]

Hey Rex,

That is the ticket. Love it! Do you use your EPC and Parts Locator to see what the part fits and how much of your competition is carrying the part once it hits phase in?

Chuck Hartle'

[Rex]

EPC, yes!
I haven't taken the time to use the locator, but I am in an unusual market here in Fairbanks, Alaska. One other GM dealership in town carries the divisions that we don't, then it's 350 miles to the next dealer!