Chuck Hartle is the founder and president of PartsEdge, a powertool for New Car Dealerships Parts Operations, helping to increase DMS utilization, improves efficiency, accuracy, and profitability with solid and consistent plans for eliminating all types of idle inventory in a Parts Operations. With over 40 years in the auto industry Chuck has the know-how and love for the industry that has enabled PartsEdge to identify the biggest needs of dealerships.
Education and awareness are crucial in preventing obsolescence. Hartle stressed the need for parts managers to educate all department members. This includes service advisors, technicians, and even wholesale customers. Everyone needs to understand the impact of their actions on inventory health.
When informed, employees make better-informed decisions, reducing the risk of unnecessary orders. Technicians, for example, can be taught the importance of precise ordering. This reduces inefficiencies and long-term inventory issues.
Effective communication between departments is vital. Hartle emphasized the importance of regular and clear communication channels. For example, parts advisors should regularly communicate with service advisors. They need to discuss which parts are necessary and in what quantities.
Regular reporting helps maintain this communication. Hartle recommended daily special order reports tailored by service advisor. These reports identify communication gaps and help ensure that customers return to finalize their repairs.
Consistent reporting is another critical element. Running detailed reports helps identify trends and potential issues before they escalate. Hartle suggested several types of reports. Among them are the special order report, which helps track customer orders and service advisor efficiency.
Moreover, Hartle emphasized the need to identify excessive ordering patterns. Parts managers should question why certain parts are ordered frequently. This can lead to identifying deeper issues, such as inadequate diagnostic tools or training gaps.
Involving the entire parts department in financial outcomes can be beneficial. Hartle pointed out that parts advisors often do not have a vested interest in inventory health. They are primarily focused on sales and commissions.
Including inventory management as part of their performance metrics can create a sense of responsibility. Implementing financial incentives for keeping obsolete inventory low can motivate better practices. Moreover, ranking systems, such as classifying advisors into grades (A, B, trainee), could help in assessing performance levels and training needs.
Modernizing tools and technology is essential. DMS systems (Dealer Management Systems) often fall short in reporting critical inventory data effectively. Hartle pointed out that many systems are outdated and fail to address essential criteria.
Consequently, custom reports and specialized software should be considered. These tools help in accurately tracking the health of the inventory. Data-driven decisions are more effective and can significantly reduce obsolescence. Parts managers should collaborate with IT departments to develop tailored reporting solutions or consider third-party software designed for inventory management.
Drawing parallels between parts and used car management can offer valuable insights. Used car managers promptly address poorly performing stock by quickly wholesaling vehicles. Similarly, parts managers should identify and address slow-moving parts promptly.
Hartle highlighted the importance of restocking fees and wholesale customer management. He advised enforcing restocking fees for customers who frequently abuse return policies. It’s often more beneficial to let problem customers take their business elsewhere.
Preventing inventory obsolescence requires a multifaceted approach. Education, communication, and regular reporting form the core pillars. Financial incentives and modern technology further support these strategies. By implementing these best practices, parts managers can reduce financial losses, improve inventory health, and create a more efficient operation.
Stay tuned for more expert advice and practical tips on the Parts Girl Podcast. Each episode brings you closer to mastering the art of inventory management.
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This show is powered by PartsEdge: Your go-to solution for transforming dealership parts inventory into a powerhouse of profitability. Their strategies are proven to amp up parts sales by a whopping 20%, all while cutting down on idle inventory. If you’re looking to optimize your parts management, visit 🔗 www.partsedge.com.
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“Your first loss is your best loss.” -Chuck Hartle
Chuck Hartle
LinkedIn: www.linkedin.com/in/chuck-hartle-1923ab14
Website: www.partsedge.com
Kaylee Felio
LinkedIn: www.linkedin.com/in/gotopartsgirl
Website: www.part