Chuck Hartle is the co-founder and President of PartsEdge, a powertool for 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.

Cliff Cope is the co-founder and Vice President of PartsEdge. He is the creative genius behind PartsEdge's technology and has been an avid electronics buff since the age of 10. He manages all PartsEdge software development and continues to push the industry forward through creative and forward-thinking tech solutions.

The Importance of Efficiency in Inventory Management

Managing a dealership's parts inventory efficiently is crucial. Ineffective management can lead to financial losses and operational disruptions. As Chuck Hartle and Cliff Cope emphasize, optimizing parts usage and data impacts profitability.

Operational Aspects and Analytical Precision

All parts can’t be treated equally therefore setting up unique settings and requirements within the DMS is vital. Operational aspects with the DMS such as sourcing, pricing, phase-in/phase-out, and day supply are all considerations. Attention to detail in analyzing part history and sales is integral for accurate stocking. The level of trust in data should outweigh instinct, however, the human element to inventory control is much needed. 

The Downside of Inefficiency

Failure to manage inventory effectively can disrupt dealership operations. Mismanagement leads to increased obsolescence and unnecessary holding costs. It is essential to continuously test and adapt tactics to stay competitive.

The Evolution of Stock Orders and ASR Programs

ASR (auto stock replenishment) programs were developed by manufacturers to control supply chain velocity. However, ASRs cover only about 30% of dealership parts. Toyota and Honda dealerships controlling their systems, manage inventories 20-30% more effectively. Thus, reliance on ASRs may not guarantee the most efficient inventory.

PartsEdge: Transforming Dealership Inventory Control

Chuck and Cliff founded PartsEdge to address market needs for efficient parts management in dealerships. PartsEdge optimizes DMS software, maximizing business operations by better utilizing inventory control systems. Their strategy of working while competitors sleep demonstrates dedication to innovation.

AI Integration and Future Planning

AI integration is an essential part of PartsEdge's future plans. However, AI's impact at the dealership level remains limited. It is necessary to educate staff in effectively using these technologies.

The Role of a Parts Manager

Parts Managers wear multiple hats and have diverse responsibilities. Ensuring a clean working environment and efficient use of time is key. Trust in technology systems fosters efficient decision-making and streamlined processes.

Dealing with Obsolescence and Return Allowance

Obsolescence remains a significant challenge for dealerships. Despite ASR programs, obsolescence has increased by 12% over the last five years. Making more informed stocking decisions helps in mitigating these costs.

The Financial Implications of Holding Costs

Holding costs for retail items in dealerships range from 24% to 36% per year. These costs critically impact profitability. Reducing these costs through efficient inventory management is vital for financial health.

Driving Industry Efficiency and Profitability: Embracing Innovation for Future-Readiness

PartsEdge aims to make dealership inventories more efficient and profitable through solutions that enable informed stocking decisions. These improvements enhance overall efficiency and benefit the entire industry by optimizing supply chains. The automotive industry must embrace innovative inventory management solutions. As highlighted by Chuck Hartle and Cliff Cope, leveraging technology is crucial for parts managers to make informed decisions, ensuring efficiency and profitability for a successful future.

The Final Word

Ultimately, the future of dealership inventory management lies in balancing technology and operational strategy. PartsEdge is leading this revolution with their dedicated and innovative solutions. Dealerships must adopt these strategies to ensure efficiency, profitability, and future-readiness in this dynamic industry.

——————————————–

Sponsors:

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.

——————————————–

Takeaways

1. Boost profitability with efficient inventory.
2. Maximize DMS software capabilities.
3. Ask the right questions for AI use.

Quote

“There's not a lot of information and education in the parts department.” - Chuck Hartle
“More informed stocking decisions on behalf of the dealers will make the factories more efficient.” - Cliff Cope

Connect

Chuck Hartle
LinkedIn: www.linkedin.com/in/chuck-hartle-1923ab14
Website: www.partsedge.com

Cliff Cope
LinkedIn: www.linkedin.com/in/clifford-cope-a3717714
Website: www.partsedge.com

Kaylee Felio

LinkedIn: www.linkedin.com/in/gotopartsgirl

Website: www.partsedge.com