Utilizing sources correctly can make or break your inventory success. Sources connect to everything in your DMS including pricing (matrix/escalators), phase-in and phase-out criteria, sale accounts, source accounting, days supply, price code adjustments, and economic order settings. Because a source is tied to so much, it’s important to review and adjust them when needed to maintain efficiency. For some, it can be difficult to maintain more than 10 sources, but according to Chuck Hartle, president of PartsEdge and resident parts management expert, the more sources you have, the better! With more sources, you can become more granular when pricing and stocking parts, resulting in an overall healthier and more profitable inventory.


PartsEdge clients rely on us to review every single part in their inventory daily to make sure they are in the correct sources with the correct pricing, stocking levels, and proper source accounting. Daily review and adjustments allow for utmost control over your inventory by testing the true demand of each part and lowering the risk of parts turning into idle capital or becoming obsolete.


When it comes to organizing your parts into sources, we like to think of sources like file folders:


What you know you need: captive, competitive and accessory parts that sell. Keep a supply of these around.


What you think you might need: special order and non-stock test parts. Hold off on bringing these into stock until you are sure they’ll sell.


What you know you don’t need:  forced stock parts and obsolete parts. Get rid of these.


Below is a sample of 23 sources. 12 of the sources can be grouped into source by movement which means you really have 8 sources to control.  Click here for our full ebook on organizing your parts into sources.


Source 101-104 = Captive Parts Selling

Source 110-114 = Competitive Parts

Source 120-124 = Accessory Parts

Source 130-134 = Non Stock Parts

Source 135 = Special Order Parts

Source 140 = Forced Stock Parts

Source 150 = Obsolete Parts

Source 199 = Never Stock Parts