Calendar Sunday, March 18, 2018
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Parts Department Analysis


Parts Inventory Contorl is the KEY to Parts Availability!

  • Control cash investment - the dollar amount of the parts inventory.
  • Maximize fixed operation's sales potential - assist Parts Department, Body Department, and Mechanical Department - have the parts in stock prior to request.
  • Maximize fixed operation's profit potential - in all three departments through expense control and a company pricing policy.
  • CSI - Customer Satisfaction Index - repair customer's vehicle on first visit - this will increase the CSI.
  • ROI - Return On Investment - utilize net profit on cash investment in parts inventory.
  • Enhance fixed operation's personnel productivity - personnel will be able to perform duties the first time only if parts are in stock.
  • Reduce expenses by paying less for parts, freight, and telephone bills.

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

  • The parts department is the HUB of the fixed operation but it can't be productive without proper inventory control.
  • Parts availability is the key - part numbers on the shelf (in stock) when needed.