Improving Parts Profitability- Inventory Level 2

Number of Days: One

Objective: The objective of this module is to help the Parts Manager master and fine-tune their parts operation. This will lead to improved profitability and better management of stock orders.

Parts Managers will learn:

1. Advanced parts parameters
2. How to merchandise and market parts
3. Excess stock
4. Identifying the common inventory problems

The following is an overview of the program:

• Calculating the "Total demand"
• Using the information on "Lost Sales"
• The life cycle of a part
  • Phase-in criteria
  • Phase-out criteria
• Checking and identifying the active date of a part
• Methods of purchasing
  • Emergency
  • Stock
  • Other Dealers
  • Outside (Jobber)
  • Advantages and Disadvantages
• Excess Stock
  • The Good
  • The Bad
  • The Ugly
• The most common inventory problems
  1. Obsolescence
     • Identifying, Preventing, Fixing
  2. The wrong parts mix
     • Identifying, preventing, fixing
  3. Excess Stock
     • Identifying, Preventing, Fixing
  4. Merchandising
     • Presenting and enticing customers into your boutique
     • Various types of displays
     • Promoting accessories
     • Moving old accessories and rewarding dealership personnel
  5. Gathering information from the computer
• Level of Service
• Parts Policies
• Action Plan