Are You Managing or Reacting?
Welcome to this month’s Parts Management Insights, your go-to newsletter for actionable strategies in the world of dealership inventory control. We’re diving into highlights from our latest Parts Management Podcast episode with host Kaylee Felio?? featuring Chuck Hartle. Together, they explore ASR programs, the challenge of reactive inventory management, and what every parts manager needs to know to master their craft.
??? Episode Highlights: Mastering ASR & Reactive Inventory Challenges
1. Understanding ASR Programs (Automatic Stock Replenishment) they are designed to streamline inventory management by ensuring a dealership always has essential parts in stock. But Chuck Hartle highlights a key issue: these programs only guarantee a portion of your inventory—typically 20–50%, depending on the manufacturer.
“ASRs guarantee what sells, but they also stock your shelves with ‘one-hit wonders’ that create unnecessary clutter.”
Key takeaway: Don’t rely solely on ASRs. Be proactive in managing non-guaranteed inventory to maximize efficiency and minimize waste.
2. The Pitfalls of Reactive Management Many parts managers fall into the trap of reactive inventory management—managing orders on the fly instead of relying on organized sources and proactive strategies. According to Chuck:
“Throwing parts on a CSO order every time something isn’t replenished is disorganized chaos. It’s like managing milk and canned asparagus with the same system—completely inefficient.”
?? Pro Tip: Break out your inventory into sources by commodity type (e.g., bulk oil, tires, accessories etc.) to simplify tracking and decision-making.
3. The Fear Factor: Why Managers Avoid Source Setup Many managers are hesitant to adjust their DMS settings, fearing they’ll make costly mistakes. But failing to review and tweak sources can create long-term inefficiencies. Chuck emphasizes the importance of education and regular reviews:
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“Sources should be reviewed quarterly or even monthly. Leaving them as-is from a previous manager is a recipe for inefficiency.”
??? Solution: Invest time in learning your DMS, and don’t be afraid to consult experts for guidance. Proactive adjustments can save countless hours and headaches down the line.
4. Data-Driven Decisions: Watch & Excess Categories Chuck and Kaylee also discuss the importance of tracking key inventory categories like “watch” and “excess.” These metrics provide insight into overstocked or slow-moving items, enabling better decision-making.
?? Actionable Tip: Use realistic day supply settings in your DMS for accurate reporting. For example, bulk oil should reflect a 30-day supply, even if you don’t order it manually.
?? Your Action Plan for Smarter Inventory Management
?? Ready for the Full Conversation? Catch the full episode of the The Parts Management Podcast featuring Chuck Hartle. Gain deeper insights into optimizing your inventory processes and overcoming the challenges of ASR programs.
?? Listen Now: https://www.partsedge.com/thepartsmanagementpodcast