Enhancing Automotive Parts Inventory System
Every new year brings with it the chance to reflect on the past and start fresh to maximize your company’s performance. 2020 promises a year full of disruption and change; everyone hopes life will return to normal soon. To minimize revenue loss due to slowdowns or shutdowns, dealers must control costs by improving Automotive Parts Inventory management.
You are familiar with the situation.
You reach for the part needed to finish a work order, but it’s gone. Could the amount from your previous order have been incorrectly charged off or was not included on the work order itself? There are many reasons why parts may go missing; but ultimately it comes down to both cost and time spent searching for lost inventory.
Increase your profitability and save time with effective inventory management strategies.
Here are five suggestions to get you started.
Prioritize
Sort your inventory according to cost and frequency. Create at least three groups for ease of reference: items you use frequently that require more stock; these typically have lower prices. Items vital to your parts team but with a lower cost or slower turnover should go in the second group. Finally, items with moderate turnover rates and costs will be placed in the final category.
Track
Don’t skimp on data collection. While it may seem tedious to fill out all required fields for every product that enters stock, doing so will save time in the long run if all information is completed accurately and completely. Important details to consider include:
SKUs
- Information on barcodes
- Supplier identitate Numerous lot numbers
- Country of Origin
- Cost
Calculation
An annual inventory is essential to reconcile your physical inventory with what was originally recorded. Additionally, weekly and monthly inventories should be done on items moving quickly or prone to errors; this will identify parts that weren’t recorded and provide insight into where missing inventory may have gone.
Deter theft by keeping a constant watchful eye.
Suppliers
We’ve all been there. You had to call in for assistance with monthly bills or payments, but that doesn’t have to be your experience. Instead of wasting your time searching for unreliable vendors, take some time to speak with them and find a solution. Have at least one backup plan ready in case an emergency arises.
Proces
Create a standard procedure for every step in your inventory process. Your service department should be responsible for receiving, counter sales and returns as well as requests. Ensure that everyone follows these steps exactly; even slight differences in how each task is completed can cause major issues.
Additional Resource:
https://www.rockauto.com/
https://boodmo.com/
https://www.drivparts.com/