How PartsEdge Transformed a Ford Dealership’s Parts Inventory
When it comes to managing a parts inventory, keeping obsolescence in check and staying on top of non-stock parts is crucial for efficiency and profitability. That’s where PartsEdge steps in. One of our Ford dealership clients recently saw massive improvements after using our services, and the results speak volumes.
A Major Reduction in Total Inventory
Inventory management can feel like a balancing act, especially with manufacturer programs like RIM (Retail Inventory Management). Our client’s total inventory value dropped by almost $95,000, with the majority of that reduction coming from non-RIM parts—a huge win! Non-RIM parts often lead to excess stock and obsolescence, dragging down profitability. Reducing non-RIM inventory not only frees up cash but also helps streamline operations for better control over what’s truly needed.
Ford Non-RIM Obsolescence: A Drastic Improvement
Before working with PartsEdge, our client’s obsolescence for Ford non-RIM parts aged 13 months or more was a staggering 34%. That’s a lot of idle stock sitting on the shelves, tying up capital and collecting dust. After implementing our solutions, they were able to reduce that obsolescence to less than 5%, resulting in a $66,000 drop in non-performing inventory!
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The Bottom Line: Profitability and Efficiency
These numbers aren’t just improvements—they are game changers. The reduction in obsolete parts alone translated into recovered space, time saved, and thousands of dollars redirected toward more productive areas of their business. By leveraging the insights and strategies that PartsEdge provides, our client now runs a leaner, more profitable parts department.
Conclusion: Is It Time to Reassess Your Inventory?
If you’re a Parts Manager looking at excess inventory, high obsolescence, or a bloated parts department, take this as a sign. A fine-tuned inventory strategy not only saves you money but also increases efficiency and overall profitability. Whether it’s Ford or any other manufacturer, PartsEdge has the tools and expertise to turn your parts department into a well-oiled machine.
Retired September 2024
5 个月Chuck LaForte is right on! There is NO silver bullet. It is absolutely a good thing when you sell off or otherwise eliminate obsolete inventory. But what caused the problem? Mr. Dealer, if you don't know, you better find out and get a solution to the problem or you will face the same situation again in a couple of years. Most likely, the main contributor is that your special order process is non-existent or is not being adhered to. Parts manager training and a WRITTEN process is essential.
Manager, Parts Operations at Nissan North America
5 个月Two key aspects with reducing aged inventory: 1) mitigating future aged inventory, which can be done mostly by better internal policies and procedures, but 2) making what you have currently go away. Curious how PartsEdge aides with #2? Many are looking for a silver bullet and I have yet to find one!
p.s. I ship cars. VP of DEALER SUCCESS for ShipYourCarNow/President of Don Brady Consulting INC 33.7k followers
5 个月????