Changes Our Clients Have Seen!

Frozen Capital

Frozen Capital are those parts that are not profitable for the dealership.  They are a combination of Non-Stock (NS) coded parts and Auto Phase Out (AP) coded parts and should represent less than 5% of the dealership's total investment in parts inventory.  Causes of high Frozen Capital include:

  • Poor Return Processes to the Manufacturer

  • Uncontrolled returns from Wholesale Accounts

  • Unmonitored returns from the Shop

  • Poor Special Order Controls

 

Fill Rate to the Shop

A technician's ability to "spin a wrench" is directly related to the Parts Department's ability to provide IMMEDIATE off the shelf availability of parts.  Fill Rate measures that.  Fill Rate to the shop should reach at least 90%  As off the shelf availability of parts goes up:

  • Technician Productivity and Efficiency Go Up

  • Profitability Goes Up

  • Loaner Car Days Go Down

  • Special Orders Decrease

  • Fixed Right, First Time Increases

 

 

Selling Days of Supply

Days of Supply has been a measure of Parts Inventory performance for many years.  However, this calculation contains parts that are not actually selling or are not longer in inventory:

 

  • Obsolescence

  • Unsold, Uninstalled Special Orders

  • Work In Process

  • Returns to the Manufacturer
     

Selling Days of Supply represents the value of inventory on the shelf that is actually selling.  It is a more realistic measure of Parts Inventory performance.

 

 

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