What is Automotive Parts Inventory Management?
Assets that your business has. This is crucial to your business’s smooth operation and profitability. An inventory shortage can lead to lost sales and unhappy customers. A large inventory can lead to lost or stolen parts and make it more difficult to invest capital in other areas. Both are bad situations. You can reduce these risks Automotive Parts Inventory by managing your auto parts inventory.
What is inventory management?
Inventory management refers to the ordering, storage, and selling of automotive parts. It can be used to streamline inventories and avoid stock shortages and stock overages.
What is the importance of inventory management?
There are many reasons parts inventory management should be a top-priority:
A good inventory management system will allow you to have a better control over your parts department. You will be able track past trends and determine the best restocking levels. This allows your inventory system to notify parts personnel when a particular part is needed to be re-ordered.
Lowers your costs
Good inventory management can help to reduce the chance of stock shortages. This will reduce the chance of losing sales due to misplaced or out-of-stock parts. Additionally, it will reduce storage costs and save labor by storing the right amount of inventory.
Allocation of resources
Maintaining accurate inventory records will ensure you optimize all aspects of your business including capital, space, productivity, and profits. Too much inventory can eat up valuable storage space and divert capital that could be used to invest in new tools or upgrade equipment.
You can easily determine how long it will take for parts to arrive at your customer’s car by keeping a complete parts inventory. You will quickly be able determine if you have the parts you need. This will make it easier for your staff to schedule service appointments.
It can negatively impact a customer’s opinion of your company if they have to wait longer to find out if a part is available or were told that a part wasn’t. You will be able answer customer questions faster if your inventory records are well maintained. This will make your customers feel more confident in your business and improve their overall satisfaction.
You can reduce the time your staff spends looking for parts, and allow them to focus on tasks that will improve your business’s operations and increase profits. This could include:
- To increase efficiency and accessibility, organize parts.
- Better ordering can help reduce inventory costs.
- In case of emergency, it is worth researching backup suppliers.
Tips to improve your parts inventory management
It doesn’t have to be difficult to manage your auto parts inventory. There are many methods to improve your inventory management.
Your parts should be stored carefully
Although it is quicker and easier to place new stock where there is space, it can be more time-consuming and confusing. Face the part numbers inwardly whenever possible. If you are unable to do so, place the part numbers on the visible side or on the bin or shelf that houses them.
It is possible to achieve greater accuracy by taking the time to develop an efficient inventory organization system, and then following through with implementation. This will have a positive impact on your productivity as well as dealership efficiency.
Restore parts where they came from
Although it may sound simple, many dealerships experience problems with parts not being returned or being placed in the wrong place. You can improve accuracy and reduce the number of parts lost or misplaced by creating a simple and efficient process to manage returned parts.
Personnel for good parts
Staff cutting corners can cause inventory discrepancies. Staff may assume that the amount received matches the order. This is a common example. They speed up the receiving process to get on with the next task. Staff will also assume that all parts in a bin look the same, even though they have not checked labels or packaging. Parts often end up in the wrong places and must be sorted before counting. These errors can be reduced by hiring people who are reliable and well-trained.
Complete regular inventory checks
You will find errors and problems easier if you regularly check your inventory. This will improve your inventory records as well as the way you manage your parts.
You don’t have to go through your entire stock. Instead, you can focus on the most important parts, the parts that are more likely to be misplaced, and the parts with the highest values. Check your accuracy by taking a few bins every day for the entire year. This will help you identify areas that require more attention.