by tcollins » Fri Aug 09, 2019 8:40 pm
PartsPlant81:
I started in parts when all we had for inventory control was a cardex file. Ugh! I saw the first computers come when they were programmed with cards punched with holes, presumably machine language. Mike Nichols was the first to use a “super computer” to compile data from many dealers and then analyze it on a statistical level. Imagine how many people thought he was nuts? From that, not only did we get the principles of proper inventory control backed by the statistical calculations making it irrefutable but the birth of the DMS and all the algorithms we use today to order, sell and return inventory.
I believe you’re correct, parts departments will always need one or more people in parts. But for a different reason. I think it won’t be for inventory control it will be for putting parts on the shelf, handling returns, maybe helping techs and creating more sales etc. and most will be paid minimally much like the aftermarket. We, myself included, hold inventory control as the epitome of what we do, a benchmark of our skill and worth, when the reality is it can, and probably will, be done by someone else remotely or even by a computer. Simply because it can. Ultimately, we are charged with growing the business, ringing the register and maximizing the cash investment of the DP or corp. Controlling the loss and maintaining the integrity is just one part of the equation and unless it non-existent now, probably not a huge deal for the powers to be. Don’t get me wrong, your variance should be celebrated and not minimized, it’s a difficult task no doubt and one to be very proud of…..but within the perspective of the ultimate goal.
About 15 years ago, maybe longer, I was involved in a manufacturer’s study of parts managers and how well we all controlled our inventories to maximize profitability….think fill rates and turns basically as well as manufactures incentives and program usage. The results were insulting to a guy, like me, that had spent my entire career in a parts department. Only 1/3 were considered “good or very good”. The other 2/3 were considered mediocre, inconsistent or outright failures with a full 1/3 in the latter category. From that, my belief is, RIM, Parts Advantage, and other remote inventory control programs gained momentum because the manufacturer was able to compensate for bad parts managers. 2/3 got instantly better and the top 1/3 were minimally effected other than a few bruised egos. I have a rather stubborn opinion about this and I’m sure you do as well but the bottom line is the manufacturer loves it and wants more of it and will eventually get it. For most, the manufacturers do it now with campaign parts controlling allocation, delivery and returns through the entire life cycle. For others it’s fast moving or specific commodities. It’s not a stretch to think they could control it all at some point with ease.
Happening today, one significant import manufacturer, has technicians build their own quotes and order their own parts. While working in the workshop manual, they can cross back and forth to the parts catalog while highlighting parts and building an order. It has been used in other parts of the world and by all accounts, successfully. Times are definitely changing.