Why Most Parts Departments Lag Behind

Every time a required part isn’t available, a technician waits, a customer leaves, and revenue slips away. On the latest PartsEdge Podcast, host Kaylee Felio and guest MK Valley Co-founder and CEO of SparkServ expose the gaps that keep dealership parts departments stuck and show how leaders are transforming the process.

What are the biggest challenges facing parts inventory management today?

MK Valley explained that disconnected systems between sales, service, and parts keep teams from acting fast. Advisors often can’t confirm availability or pricing because their data sources don’t align.

Many dealerships still depend on manual tools, slowing down decisions when shortages occur.
Kaylee Felio emphasized that outdated habits block progress toward faster, more customer-centered operations.

Managers can begin improving by:

• Integrating data across departments to give advisors immediate visibility

• Replacing manual tracking with centralized digital systems

• Encouraging new workflows that make teams more agile during supply delays

How can AI and technology help parts managers run leaner, smarter inventories?

AI and machine learning can study repair-order patterns to forecast demand more accurately.
Systems such as PartsEdge connect the DMS and other dealership platforms, allowing managers to see what is happening across departments in real time, says MK Valley.

AI-based notifications for maintenance, warranty triggers, or part arrivals also strengthen customer relationships and streamline work for advisors and technicians.

Technology works best when:

• Used to identify trends and predict needs

• Focused on analysis and visibility rather than full automation

Why do dealerships struggle to adopt these solutions when other industries have advanced quickly?

Many dealerships keep their old systems because they appear to work, even when they cause hidden inefficiencies. Kaylee Felio pointed out that younger, tech-minded leaders are pushing for change, but broader adoption still requires a cultural shift.

MK Valley added that compared with retailers that simplify the buying process, many dealerships still make it difficult for customers to order parts or book service quickly.

To close the gap:

• Build a mindset that values constant improvement over routine

• Study how other industries reduce customer friction and adapt similar approaches

What is the impact of collaboration between parts and service?

According to MK Valley, top-performing dealerships treat parts and service as one unified team focused on maximizing sold hours. This shared goal improves efficiency, raises RO values, and leads to smoother customer experiences. 

“Without timely, accurate parts availability the service bay cannot perform at full capacity.” — MK Valley