---
title: Chuck Hartle – Are Idle Parts Costing You More Than You Think?
description: Discover strategies to optimize parts inventory management, enhance efficiency, and boost profitability by addressing idle inventory and balancing stock levels in dealership parts operations.
---

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# [Chuck Hartle – Are Idle Parts Costing You More Than You Think?](https://www.partsedge.com/blog/are-idle-parts-costing-you-more-than-you-think)

 Written by [PartsEdge](https://www.partsedge.com/blog/author/partsedge) | Dec 20, 2024 8:00:00 AM

### **Understanding the Basics of Inventory Control**

#### **Different Commodities in Parts Departments**

First, every parts department handles varying commodities. These include maintenance items, collision parts, chemicals, and gas and grease. Additionally, dealerships often have preset sources or stocking groups. Whether you're on a stock replenishment program or not, these settings depend on sales and asset accounts.

#### **Separating Commodities for Better Control**

Parts managers often struggle with mixing different types of inventory. For instance, they may find collision parts mixed with hard parts and accessories. By breaking them out separately, you can better manage inventory, day supply settings, and pricing. This methodology helps you control sales and inventory more efficiently.

 

### **The Challenges of Setting Up Sources**

#### **Fear and Complexity**

The fear of setting up sources is common among parts managers. This is due to complex steps involving multiple programs, especially with systems like CDK or Reynolds. The complexity often deters managers from properly organizing their inventory. Many get frustrated when initial setups fail and revert to previous, ineffective methods.

#### **Lack of Support from DMS Vendors**

Moreover, a major issue is the lack of expertise from DMS vendors. They often do not provide adequate support for setting up systems. Consequently, parts managers feel like they are navigating the process blindfolded.

 

### **The Importance of Regular Review and Adjustment**

#### **Updating Systems Regularly**

It's crucial to periodically review and tweak your sources. Chuck suggests doing this quarterly or even monthly. Most parts managers learn through the University of Hard Knocks, rather than formal education. Ensuring your sources are up-to-date can prevent inefficiencies and better manage your dealership's investment.

#### **Seeking Education and Consulting**

Various consulting companies like ADMI offer valuable resources. Parts managers seeking additional education can turn to NADA, NCM, or similar organizations. Nonetheless, these resources are limited, making self-education an ongoing challenge.

 

### **Balancing Stock Levels**

#### **Avoiding Overstock**

Balancing sufficient stock while avoiding overstock is essential. Overstocking ties up capital and consumes valuable space. Chuck stresses the importance of setting up accurate day supply settings. Whether through a manufacturer-controlled system or independently, realistic settings help report inventory accurately.

#### **Tracking and Managing Excess Inventory**

Subsequently, managing excess inventory is another critical task. Dealerships often see excess in commodities like bulk oil and tires. Setting realistic day supplies for these commodities can help in better tracking and reporting excess inventory. Also, accurate categorization of inventory (such as in watch and excess categories) plays a significant role.

 

### **The Debate on Number of Sources**

#### **The Milk and Canned Asparagus Analogy**

Chuck employs an analogy to explain diverse strategies for sources: milk and canned asparagus. Some managers prefer fewer sources, thinking it simplifies management. Yet, this approach forces them to manage disorganized chaos. Combining high-turnover items like milk with low-turnover items like canned asparagus creates inefficiencies.

#### **The Case for More Sources**

On the other hand, breaking out sources according to commodity types simplifies inventory control. This aids in accurate pricing, better stock management, and realistic reporting. You're able to manage each category based on individual turnover rates and asset settings.

 

### **Manufacturer Guarantees and ASR Programs**

#### **Understanding Manufacturer Guarantees**

Manufacturers guarantee different percentages of inventory. For example, Subaru covers about 75-80%, while GM and Chrysler cover around 40-50%. Programs like RIM (for GM) are designed to manage high-velocity parts. They rarely cover the entire inventory, highlighting the need for efficient tracking tools.

#### **Maximizing ASR Programs**

ASR programs are here to stay. They offer many advantages, such as pre-set replenishment and inventory guarantees. Manufacturers may not cover the entire inventory, but they do manage fast-moving parts efficiently. Therefore, it's crucial to maximize these programs by understanding their rules and leveraging them to your advantage.

### **Conclusion**

Effective inventory control is vital for any successful parts manager. By understanding different commodities, managing sources correctly, and balancing stock levels, you can streamline your process. Keep educating yourself and reviewing your systems regularly to overcome challenges. Ultimately, proactive and well-organized inventory management leads to better efficiency and profitability for your dealership.

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