Mark Payne is the President & CEO of Total Dealer Solutions, a family of companies specializing in front end and back end solutions for automotive dealers. He began his career at age 9 in his father's dealerships, eventually owning Mark Payne Mazda of Miami by age 30. Mark later founded Total Dealer Solutions, specializing in physical inventories which led to the innovation of PartsRec.

Introduction

In this episode of the Parts Girl Podcast, Kaylee Felio and Mark Payne tackle pressing concerns regarding inventory and reconciliation issues. They focus on the persistent challenges faced by automotive parts departments during system downtimes and provide actionable steps to overcome these hurdles.

Understanding the Immediate Impact

When a system like CDK goes down, immediate chaos ensues. Mark noted that the primary concern from clients was the inability to find parts. Parts departments struggled to locate bin locations and adequately manage inventories, severely disrupting operations.

Recreating Transactions in the System Post-Downtime

Once systems are restored, every transaction needs to be reentered, as Mark emphasized. Without shortcuts, this manual task ensures accuracy. Some might consider taking shortcuts, like using sublet items, but these don’t relieve parts in the inventory system. Therefore, it’s crucial to document transactions thoroughly and recreate them methodically, thereby maintaining the integrity of the parts inventory.

Managing Physical Inventories Amidst Downtime

Luckily, none of Mark’s clients were conducting inventories during the downtime. However, the challenge remains when systems are offline. For those who had recent inventories, Mark’s team provided them with Excel files containing all necessary data fields. This enabled dealerships to continue operations seamlessly.

Using Data Backups as a Lifeline

Data backups proved invaluable. Mark’s team could offer clients recent data, including part numbers and bin locations. This minor but essential step facilitated business continuity by allowing dealers to see essential inventory data in a spreadsheet. Even if on-hand quantities weren't perfect due to ongoing sales and receipts, this method provided a needed stopgap.

Preserving Workflow with Manual Practices

In modern times, it’s easy to forget manual practices. Mark recommended using pre-numbered parts tickets and ROs for tracking. Dealerships could even tear off sections of the order number (RO) and use that as part of a manual tracking system. This might sound elementary, but it ensures no transactions are overlooked.

Streamlining Receipts and Sales Recording

When systems are back up, the ideal sequence involves recording all receipts first, according to Mark. This avoids triggering unnecessary back orders. Selling parts before logging receipts can mislead the system into double-ordering parts. Moreover, accurate receiving and selling help maintain the integrity of on-hand quantities, preventing unnecessary obsolescence.

Maintaining Order Amidst the Chaos

While the situation might seem dire, maintaining order helps mitigate long-term impacts. Mark recommended dedicating specific personnel to handle specific tasks. Dedicating staff ensures organized and traceable activities, thus simplifying subsequent reconciliation tasks.

Harnessing Support from Different Departments

Re-entering data can be labor-intensive. Therefore, leveraging team support from departments like accounting is beneficial. Quick typers and detail-oriented staff can expedite this process, adding manpower to get through the backlog quickly.

Mitigating Future Risks with Backup Strategies

This incident highlights the need for more robust backup strategies. Kaylee stressed that having backup data such as inventory pads, prices, and bin locations can be crucial. Going forward, dealerships should ensure they regularly backup comprehensive data sets necessary for smooth operations.

Final Thoughts

CDK's incident serves as a learning experience. While frustrating, it underscores the importance of meticulous record-keeping and having contingency plans. By staying organized and leveraging specific steps, dealerships can minimize disruptions and safeguard their operational continuity.

Conclusion

Navigating parts inventory challenges during system downtimes requires meticulous planning and execution. Adequate documentation, contingency strategies, and leveraging team support mitigate issues. Ensuring robust backup strategies is vital, helping dealerships soar above disruptions. Lastly, while no shortcuts exist, diligent efforts minimize impacts, ensuring business resilience.

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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.

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Takeaways

1. Recreate transactions post-outage for accuracy.
2. Use data backups to maintain operations.
3. Stick to scheduled physical inventories.

Quote

“There's no shortcut to success. Give as much help as you can and do it because you want to.” -Mark Payne

Connect

Mark Payne
LinkedIn: www.linkedin.com/in/markjpaynetds

Website: www.totaldealersolutionsinc.com

Kaylee Felio

LinkedIn: www.linkedin.com/in/gotopartsgirl

Website: www.partse