Calendar Sunday, March 18, 2018
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Why is Inventory Control Important

With Supplier bankruptcies and natural disasters inventory control has become more critical and more difficult for the for the successful Parts Manager.

Parts Inventory Control is the KEY to parts Availability.

1. Control cash investment - the dollar amount of the parts inventory.

2. Maximize fixed operation's sales potential - assist Parts Department, Body Department, and Mechanical Department - have the parts in stock prior to request.

3. CSI - Customer Satisfaction Index - repair customer's vehicle on first visit - this will increase the CSI.

4. ROI - Return On Investment - utilize net profit on cash investment in parts inventory.

5. Enhance fixed operation's personnel productivity - personnel will be able to perform duties the first time only if parts are in stock.

6. Reduce expenses by paying less for parts, freight, and telephone bills.

What effect does the parts Inventory Control have on these areas?

A. The parts department is the HUB of the fixed operation but it can't be productive without proper inventory control.

B. Parts availability is the key - part numbers on the shelf (in stock) when needed.