Managing parts inventory isn’t just about keeping the shelves stocked—it’s about making sure every part earns its keep. And let’s be honest, between service demands, manufacturer pressure, and limited time, it’s easy for even the best parts departments to fall into a reactive rhythm.

That’s exactly why we created the latest PartsEdge White Paper—a deep dive into the inventory strategies that actually move the needle. Whether you’re dealing with slow turns, growing obsolescence, or just want to make sure your capital is working harder for you, this resource lays out the path to a more efficient and profitable operation.

Here are five key takeaways from the white paper that every dealership should be applying right now:

1. Focus on the 20% That Drives the 80%

You’ve probably heard of the 80/20 rule. But are you applying it to your parts inventory?

The research shows that roughly 20% of your inventory is responsible for 80% of your profits. Still, many dealerships are over-invested in parts that barely move. By identifying and investing in your top performers—and trimming the excess—you can boost profitability without expanding your inventory footprint.

2. Idle Inventory = Idle Capital

Did you know that 80-85% of inventory typically sits idle?

Excess stock often flies under the radar because it includes common items like oil filters and spark plugs. But stocking more than a 60-day supply can quietly drain your capital and crowd out more productive parts. The white paper outlines how to define and review excess inventory consistently, giving you a clear roadmap to reduce financial waste.

3. Stop Forced Stock from Creeping In

Forced stock has a way of sneaking into your inventory. These are parts you never meant to stock but ended up ordering due to customer needs, technician requests, or warranty situations. It often makes up 30% or more of total inventory—and it’s a fast track to obsolescence.

The report pinpoints five main causes of forced stock and shows how to start tracking and controlling it right away.

4. Reign in Special Orders Before They Become a Liability

Special orders are a fact of life—but without process, they can spiral into shrinkage, obsolescence, and frustrated customers.

The white paper recommends clear procedures like customer prepay policies for non-warranty items and a data-driven phase-in process before stocking anything new. These steps reduce risk and keep inventory aligned with true demand.

5. Fight Obsolescence with Data, Not Guesswork

Once obsolescence sets in, it can quietly erode profits—and fast. If more than 15% of your inventory hasn’t moved in over 13 months, you’ve got a problem on your hands.

Our white paper breaks obsolescence down into two phases:

• Technical obsolescence: No sales/receipts for 7-12 months

• Full obsolescence: No sales/receipts for 13+ months

You’ll learn how to calculate your monthly obsolescence growth rate and compare it to your return allowance—so you can make informed decisions before the write-downs hit.

The ROI of Smarter Inventory Management

Here’s the impact PartsEdge clients have seen when putting these strategies to work:

• 10–20% reduction in total inventory value

• Up to 90% decrease in obsolescence

• 20% increase in parts sales

• 8–10 hours saved per week in manual tasks

Not bad for a few process shifts.