BMW obsolescence

[lstacy65]

Anybody know a good resource for getting rid of BMW and VW obsolete parts. Just took over a BMW/VW/Volvo store with a big obsolete parts issue. Thanks folks

[FixedManager]

All have a good return system but will take time and a plan. First place to start is creating reports and determining non-returnable parts. After that if you are in a hurry there are sources that will buy it for pennies on the dollar. Do a forum search for a few of these companies.

[AIIVESINCE85]

Took our BMW inventory down from 24% to 2%

Best thing you can do is take advantage of the Tiered Returns program to minimize handling charges and gain a larger return allowance at the minimum handling fee. This will at least minimize costs associated with large returns, especially if you may go over your maximum allowance and must take on a higher handling charge. You will need to sign up for Label Master DGIS software, attend two classes and really work with SRD to meet it's benchmarks.

BMW does 2 hazmat returns a year, so keep your airbags and shocks in good shape and they can eventually go back.

Non-returnables can generally be found using ^^^N in the ABCD field, if you'd like to create a report. Ebay, Amazon, forums, wholesalers, online retailers, etc for these items. Just need to make the effort to find possible buyers and get your spreadsheet out to them.

Retail Makr is also an option. Basically, it's a company who gets a spreadsheet of your inventory monthly and if one of their online stores sells an item you have, and if your cost to Retail Makr is lowest, they will offer to purchase the part off you and ship it to the customer free of charge. Once in a while we will sell some non-returnables and old stuff.. just have to make sure accounting is keeping an eye on their A/R account.

Also, if you have CDK, there's the "Cash Discovery Program" in which other dealers can purchase your inventory at, usually, .50 on the dollar. Next to last resort, really.

Preventatives:

Utilize SRD. It will make you run lean, sometimes too lean, but if you keep an eye on your maintenance and campaign parts, you usually won't run into too much trouble. A side effect of SRD is that it will want to stock A LOT of your popular maintenance parts, which actually lowers your obsolescence percentage and anything automatically sent to you is returnable at no charge once it hits so many months without a pick. If you have space, just stock the automatic replenishment parts. Unless your director is a hardcore DMS guy, they should understand the benefits.
Pre-pay all special orders.
Enforce a strict return policy.
Create pre-obsolescence reports and work on finding a way to get them out of inventory.

[lstacy65]

" Non-returnables can generally be found using ^^^N in the ABCD field "

Is this in Dealerspeed or Somewhere in my DMS ? I have DealerTrack.

Thanks for the valuable info - Very much appreciated.