Inventory Performance Comparison

[camaroman]

Looking for some feedback from some other dealers willing to share their inventory performance report. I know there are bench marks out there, but with this great RIM thing that we deal with the numbers are off some.
r c parts @ p t d . n e t
Thanks

[Mike Nicholes]

You're right, the numbers are 'off' and different; but if we drop into trend analysis instead of fixating on a single month the numbers, especially for those of RIM and other (many but not all) factory automatic replenishment programs (marketing and masquerading as inventory control) we see a much different picture.

1. An increase in overstock (excess stock)
2. An increase in obsolescence; they don't call it that because in many cases you can return the parts in 9-15 months; so it's really an free loan to the factory with your money.
3. No marked fill to the shop on demand for parts needed
4. A mix of parts based on a 'market area' and not the specific dealership; especially important to those whose dealerships are on the outskirts of large metropolitan areas.

There are some measurements that will help you to track what is really going on; go to www.partsconsulting.com and download the checklist and the key to the checklist. No cost, no advertising because you downloaded it; it is free. The checklist, done monthly and then trended on an Excel spread sheet will give you a much more clear picture of where you are and what the inventory investment is really doing.

Mike Nicholes

[Mike Nicholes]

By the way, I have been trending several hundred dealerships and can back up the previous statements.

[Fixed Ops Mgr]

I just started using the Mike Nicholes checklist this month (July) as I am trying to improve my department. Some parts of it are confusing at first but I think I am getting the
hang of it.

[Mike Nicholes]

If you, or anyone, needs help with the checklist just email the questin directly to me at miknik@aol.com

[camaroman]

Thanks for the input Mike, I will check that out. Also, thanks to those of you sharing your report.