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Changes Our Clients Have Seen!

Frozen Capital

Frozen Capital reducing from 24 percent down to 9.4 percent

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

Frozen Capital

Fill Rate to the Shop

Fill rate to the shop increasing from 64 percent to 92 percent.

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


Fill Rate

Selling Days of Supply

Selling days of supply reducing from 55 days to 26 days

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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