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Inventory Management (Employees (Theft Prevention (Spread out power to…
Inventory Management
Employees
Human Error
Human error can cause an inaccurate inventory. Miscounting and misplacing inventory will cause problems when that item is being sold and can easily cause a lost sale.
Properly Trained
Having properly trained employees is vital. In order to maintain an accurate inventory, the employees need to be well versed in the management software, basic knowledge of the items being sold, and maintain a safe workplace.
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Feedback
Employees work the front line and know the best options for how to run more efficiently. Getting their feedback can help implement change for the better.
Theft Prevention
Spread out power to specific people so you can track any theft easier. This can be done using ID cards that only enable
a certain number of employees access to a specific area. Cameras around the premises will discourage theft as well.
Responsibility over accounts should be spread out so one person doesn't have all the control over them. These people should monitor each other so there is a lower risk of theft.
Trade-Offs
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Balancing the need for a large storage facility to house/distribute your products with the high overhead expenses that accompany a large facility. These include utilities, more employees, and increased cost of actually acquiring the facility.
Use robots instead of humans to complete tasks. With less humans there is less human error however with more robots there are repair and maintenance costs.
Customers
Wholesale
Inventory items sold to other suppliers for resale or for use. Does not have as high of a market up as retail sales but still allows for the department to make money on item.
New/Used Car Departments
Smaller customers of the department. Use parts to service used cars before sale and add accessories or fix shipping errors of new cars.
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Service Department
Largest volumn customer of the Parts department. Its important to have the items in stock to support the service departments needs. Often has the highest mark-up on parts.
Vendors
Part Availability
Parts often become back-ordered or some vendors simply don't carry what you need. A vendor should have a good stock of parts to not cause major effects to your inventory when you need certain parts.
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Shipments
A vendor should be fairly close to the dealership, or be able to ship parts ASAP to your location, this will keep your inventory at the correct level so you aren't waiting weeks for parts because you ran out.
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Building
Safe Workspace
OSHA
Occupational Safety and Health Administration. Regulates workplace safety by issuing protective measures such as personal safety equipment requirements, access to hazard information, and hazards from operating dangerous equipment.
Common Sense
Common sense will not only provide a safe workplace but will also increase productivity and efficiency of the entire department.
Storage
The building should have ample space for parts and should be set up properly so space is not wasted. Having enough room for parts is critical for inventory management.
Location
Parts delivery drivers often times won't drop parts if they don't have enough space to do so. This could severely impact your inventory if it is difficult for delivery drivers to drop parts.
On-Site Inventory
Inventory items
Clearly labeled
Part numbers and other valuable information should be clearly stated on the label, facing the direction of view for the employee.
Proper organization
Having properly labeled and organized items in your inventory will increase customer satisfaction by selling the correct part, faster, the first time. Makes employees job easier because the part will be in its designated location.
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Obsolete Parts
Take up valuable space in storage and money. Important to remove quickly in order to maximize potential.
Inventory Turn
How long does it take the business to turn over its stock. This is critical for knowing when to order, what to order, and how much to order.
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Having parts at the ready will keep customers coming back instead of going to smaller shops where they would have to wait for parts while they are in your inventory #
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Pricing
Matrix Pricing
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Matrix pricing adjusts the price of a product or service depending on the customer. For example, there is a lower mark up price when selling to an internal customer, like the used car department, than an over the counter retail sale. The retail sale will have the highest mark up.
Competitive
Prices need to be competitive at the dealership. If your prices are too high, nobody will come to the dealership and purchase your parts. If prices are too low you won't make any money. Being competitive and able to match prices will allow for more movement in your inventory.