Obsolescence

[TimK]

They're only putting it in 35% of the way on CSO returns.

[camaroman]

Thank you, the best place for information is here. Much quicker responses then we get from our supposed support system at the manufacturer.

[Zep33]

Toyota - On 12/31 - MNS over 12 ___ $420.08 ___ 0.25%

sorry guys I really feel for you and would rather jump in front of a train than to return to that convoluted bullshit they put you guys through

[MSInventory]

sorry guys I really feel for you and would rather jump in front of a train than to return to that convoluted bullshit they put you guys through

Amen brother!!
I have been in Toyota for a short 10 years and previously in GM for 25+. Toyota's return policy was 7% and .25 back on unused allowance. I do miss the monthly pick-up on the unused allowance since their program changed, but it is still an awesome return program today. Just my opinion, but if you are in a Toyota store today and have an obsolescence problem, you need counseling.

[Zep33]

sorry guys I really feel for you and would rather jump in front of a train than to return to that convoluted bullshit they put you guys through

Amen brother!!
I have been in Toyota for a short 10 years and previously in GM for 25+. Toyota's return policy was 7% and .25 back on unused allowance. I do miss the monthly pick-up on the unused allowance since their program changed, but it is still an awesome return program today. Just my opinion, but if you are in a Toyota store today and have an obsolescence problem, you need counseling.

Exactly,

I just love the fact that there are absolutely no limits on what I can send back. 10 grand this month, 9 last month. If I don't want it, back it goes. Can't beat it. It means I can stock whatever I want or order "just in case" parts with no worries if it doesn't get used. Body shop returns don't faze me a bit any more.

Other than the under $8 and under stuff, their policy can't be beat. It sure is nice to have a manufacturer treat you like a partner rather than a red headed step child.

[MSInventory]

No doubt Zep.

You know, if it's under $8 and ordered critical, naturally I move it into normal stock. I give it a max of 12 months and if not sold, write it off. So far, the write off is very minimal. On stock order parts, I'm a little more careful on the phase in criteria if under $8.
Our inventory is very clean without anything in 13+ no sale, and was, even before the new return program. The new policy has helped countless other dealerships that previously had an obsolescence problem (if they took advantage of the "free" return window). I know one store that I do phy inventory on yearly that went without a parts manager during that window and yep, missed the boat. $35k in 13+. Finally convinced the owner to send it back anyway as .80 on the dollar is better that he'll get anywhere on the planet. Now they are clean and with proper processes in place, should remain that way.

I was in a meeting at TMS in Plano a couple of months back and the $8 thing came up. The explanation sounded fair to me. They initially began at <$15 being non returnable, I kid you not. Then it was reduced to <$12 and finally, right before rolling the program out settled on the 8. That being the trade off for unlimited reserve is awesome. The idea of course, is to allow us to stock way more numbers than before without fear of getting stuck. So see, it's not for them to sell us more parts, it's for taking better, faster care of our customers (however cheesy that may sound to some, it is the truth). And that my friends is the difference in Toyota and GMSPO.

I hope it changes in the near future for all of you trapped by your manufacturer. I salute you, 'cause I know personally how difficult it is.


I am not lying about this next statement. I actually had a nightmare last night that I had for some stupid reason quit my job and went back to work in wholesale at my previous place of employment, yes, a GM store. I know that's sad. I normally don't dream of anything involving work, lol.
Good thing I start a week long boat ride to the Caribbean in 2 weeks. Sounds like i need it.

[Zep33]

No doubt Zep.

You know, if it's under $8 and ordered critical, naturally I move it into normal stock. I give it a max of 12 months and if not sold, write it off. So far, the write off is very minimal. On stock order parts, I'm a little more careful on the phase in criteria if under $8.
Our inventory is very clean without anything in 13+ no sale, and was, even before the new return program. The new policy has helped countless other dealerships that previously had an obsolescence problem (if they took advantage of the "free" return window). I know one store that I do phy inventory on yearly that went without a parts manager during that window and yep, missed the boat. $35k in 13+. Finally convinced the owner to send it back anyway as .80 on the dollar is better that he'll get anywhere on the planet. Now they are clean and with proper processes in place, should remain that way.

I was in a meeting at TMS in Plano a couple of months back and the $8 thing came up. The explanation sounded fair to me. They initially began at <$15 being non returnable, I kid you not. Then it was reduced to <$12 and finally, right before rolling the program out settled on the 8. That being the trade off for unlimited reserve is awesome. The idea of course, is to allow us to stock way more numbers than before without fear of getting stuck. So see, it's not for them to sell us more parts, it's for taking better, faster care of our customers (however cheesy that may sound to some, it is the truth). And that my friends is the difference in Toyota and GMSPO.

I hope it changes in the near future for all of you trapped by your manufacturer. I salute you, 'cause I know personally how difficult it is.


I am not lying about this next statement. I actually had a nightmare last night that I had for some stupid reason quit my job and went back to work in wholesale at my previous place of employment, yes, a GM store. I know that's sad. I normally don't dream of anything involving work, lol.
Good thing I start a week long boat ride to the Caribbean in 2 weeks. Sounds like i need it.

Well said!!

[MSInventory]

My dealership has been challenged to run <3% 15 month obsolescence. Its currently at 10%. I'm curious how all of you would handle this situation. What have you tried in the past? Any advise at all?

Any updates? Just curious as to what steps have been taken/allowed?