11 Oct Tips from Chuck Hartle: Source Optimization
Parts inventory management in today’s dealerships is ever evolving. With all the variables involved in inventory control, how do you produce the most efficient and profitable parts inventory?
The answer could be as simple as utilizing all the tools in your Dealership Management System. Dealership management systems can sometimes feel like more of a curse than a blessing when it comes to increasing productivity and profitability, but when used properly, they can be the best tool you have.
There are many things to manage when it comes to a source; Phase in Criteria, Day’s Supply, Family Pricing, Source Accounting, and tracking idle inventory are all ingredients in producing the best possible inventory and maximizing customer satisfaction to maintain profitability.
Think of each source like a file cabinet with folders. Organize your parts in “folders” such as what you have for sale, what you need to stock and what you need to get rid of. Click here to access our free ebook to help Dealerships organize parts for a truly optimized inventory.
If you need help setting your system up for success, send us a message!
The benefits of sourcing:
- Helps to eliminate excess value.
- Promotes inventory breadth.
- Helps identify forced stock quickly.
- Identifies special orders easily.
- Saves time calculating the right stock order mix.
- Allows for accurate pricing.
- Allows for proper source accounting.
- Helps increase accuracy and consistency.
- Can help maintain profitability.
- Better return on your investment.