RIM "Turnover - DealerList"

[partsman103]

I was looking around RIM and from time to time I look at the "Turnover Dealer List" tab. Now I'm not the sharpest knife in the drawer so help me out understand these numbers please.

These are the averages thru 10 months:
Average Turn Over 1 Mo. 3.53
RIM Parts Turnover 1 Mo. 2.96
Non Rim Parts Turnover 1 Mo. 3.73

The higher the turn, the better right??

[Mike Nicholes]

The problem with GM (and everybody else's) calculation of 'turn' is that they use annualized cost of sales divided by the G/L inventory. This figure gives a 'ratio' and not the real number of times the value on the shelf 'turned'. The correct formula is 'true turn'; which is the turn figure they show times (X) the purchase efficiency; the purchase efficiency must be calculated by totaling up (and annualizing) three figures: 1. The parts bought on stock order from the factory; 2. Parts bought from other sources FOR STOCK to use on GM cars (or the brand you represent; and 3. All parts bought for use in the dealership that do not fit the factory cars you represent. The total of these three, annualized, gives the total dollars purchased efficiently (PE; purchase efficiency) times (X) the gross turn ratio. Now you have the number of times you turned your total investment. GM, or any other factory, does not know what you buy from other sources 'for stock' and what you buy that increases the cost of sales that are not your factory, but charged to the parts account.

[partsman103]

makes sense and thanks for the insight.

[steve@gmdealer]

My numbers are similar. Mt non rim parts always out perform rim parts

[partsguy99]

My numbers are similar. Mt non rim parts always out perform rim parts

Could it be that your non rim parts do better than rim parts due to the fact that they're controlled
by a HUMAN BEING and not some piece of shit ALGORITHM?