Why Are More Dealers Centralizing Inventory?

Joe Castelino, Vice President of Fixed Operations at American Motors Group, oversees 12 stores across brands including Toyota, Volkswagen, Chevrolet, Cadillac, and Alfa Romeo.

One of the group’s biggest operational moves was launching a GM parts warehouse designed to improve supply chain control, capture more internal business, and increase wholesale profitability.

Joe Castelino explains that manufacturer incentives on GM wholesale parts can push margins close to 30%, significantly higher than the traditional 10–15% wholesale range.

The warehouse also solved logistical problems tied to delays from the Reno regional warehouse and allowed the group to use a nearby former Toys R Us building to maximize operational efficiency and ROI.

The next phase focuses on centralizing inventory movement between stores, helping the group retain an estimated $60,000–$100,000 annually that would otherwise leave the organization through outside dealerships.

What Makes Mobile Service Actually Profitable?

Joe explains that the group went through multiple versions of mobile service before finding Curbee and scaling a model that worked .

The first version relied heavily on manual processes and struggled operationally. The second improved scheduling through technology but remained too limited in scope, focusing mainly on recalls and tire rotations. Profitability only appeared once the service offering expanded into broader maintenance work, including oil changes.

At that stage, a single van began generating roughly $25,000 per month in total sales with approximately $5,000–$7,000 in monthly profit.

Toyota owners strongly embraced mobile maintenance services, while Volkswagen customers responded better to diagnostics and software updates than routine maintenance.

He also discusses expanding mobile service into locations where customers already spend time, including workplaces, churches, and movie theaters, creating convenience-driven service opportunities.

How Are Dealers Improving Daily Parts Operations?

Joe shares examples including automated parts pre-pulling directly into technician bays, half-day incremental inventory restocking, smarter opcodes, and even using go-karts to move parts quickly across large service facilities.

Technology integration plays a major role. Advanced DMS workflows automate much of the parts billing and pulling process, while technician feedback continuously shapes operational improvements. Specialized vacuum oil drain systems and process refinement helped increase appointment capacity and reduce downtime.

The overall focus stays on removing friction from the technician workflow while improving speed and accuracy.

Why Do Vendor Relationships Matter So Much?

Joe speaks candidly about vendor relationships, emphasizing that trust and genuine value matter far more than aggressive sales tactics.

He strongly dislikes vendors who refuse to accept “no” and explains that meaningful relationships start through conversation, collaboration, and understanding dealership operations before moving into formal presentations.

When evaluating products, Joe uses structured comparisons, team feedback, demos, and scorecards to make decisions. He also believes vendors should avoid giving products away for free because financial commitment increases dealership engagement and implementation success.

The discussion also touches on changing attitudes inside parts departments. Both Joe and the Kaylee note that upper management is becoming increasingly engaged in parts performance and operational improvement, helping shift the traditional “we already know everything” mindset.

Conclusion

The episode highlights how modern fixed operations leaders are combining operational discipline, centralized inventory, technology integration, and convenience-focused service models to improve dealership performance.

Joe Castelino’s approach centers on continuous improvement, faster inventory movement, stronger collaboration, and removing inefficiencies that slow down teams and frustrate customers.

Watch the episode: