How to minimize idle stock - PartsEdge
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How to minimize idle stock

Idle stock cluttering your shelves? Here are guidelines to help reduce the growth of idle and obsolete inventory for General Motors Non-RIM guaranteed inventory. This can be used as a guide for other Manufacturers as well.


    1. Review parts ordered daily:

      • Look at high dollar items being ordered for Warranty and review multiple parts being ordered by technicians.
      • Review large Wholesale orders whenever possible.


    1. Review the Open SOR Report by Advisor to get customers scheduled and back in for repairs.

      • Review the “SOR Report By Advisor” sent to you daily.
      • Consider using your BDC to schedule return repairs with customers.


    1. Make sure all Customer-Pay Parts on Counter Tickets and Repair Orders are pre-paid.

      • Run RPD (Report Prepaid Parts) once a week.


    1. Review any returns from customers or technicians with a high dollar value and not “RIM” protected for potential CSO-Code 11 return eligibility.  


    1. Run monthly return routines;

      • Make sure to send back RIM guaranteed returns.
      • Make sure to build and send back CSO accrual returns.
      • Build and purge monthly accrual parts.
        • Report obsolete parts to Parts Brokers prior to purge.


    1. Determine “Purge Value” needed  monthly;

      • Look at monthly Technical Obsolescence average value.
      • Look at monthly average CSO accrual earned.
      • Determine accrual needed to reduce or maintain obsolete value.


  1. Review Wholesale Customers with “High” return percentages.

    • Go into PDA, Monthly Reports, and Report #7 to review the credit ranking report to see what wholesale customers are potentially abusing return privileges.  
    • Consider lowering discounts and/or charging a restocking fee to those who are high in return percentages above 10%.


A combination of all the above procedures will help to reduce the growth of idle inventory and reduce obsolete parts growth.  Consistent daily review and monthly returns being done will go a long way in helping to identify the “root cause” of internal issues that are contributing to idle inventory problem.  


Please feel free to reach out to us with any questions you may have regarding the above “best practices” procedures.