Fixed Ops Magazine - 2021 Vol18 02 - 33

Industry guidelines indicate that inventory at 12

total inventory they should not have on hand. Across

months or older needs to be under 2% of total invento-

the entire range of dealers, the average is about 38%

ry dollar value. Anything less than that means you are

based on our data.  This is approximately 8% more

doing well. But if we zoom out a little bit you should

than the studies conducted a little more than a decade

consider how much inventory you have on hand. Give

ago. We see that small dealers have it the worst. You

due attention to obsolete parts inventory, unsold, and

can see some of the micro dealers with $125-150 K in

returned special order parts which have not aged out

total parts inventory sitting around 70-80% invento-

- yet - that need to be included. Figure out what per-

ry that they should not have on the books. There are

centage of your total inventory falls into those cate-

many reasons for this. But as a percentage of invento-

gories. Best in Class has only 20% of their total parts

ry value, the micro dealers do have it worst.

inventory that does not qualify for active parts inventory on a stock-order.  This means that if you were to

Obsolete parts inventory is all frozen capital. The Deal-

return your entire parts inventory and only re-order

er Principal's money invested in parts inventory is de-

the active parts inventory, you would have 20% less

signed to make money - make money - and make more

total inventory. However, an average dealer has 30%

money. That profit expected to be generated from as

less total inventory. 

their parts inventory investment could be used for remodeling, updates on the building, mowing the grass,

With the information that we collect, we know that

clearing the snow, paying your staff, accounting, and

there is a wide range of percentages across different

reception. So, capital invested in parts inventory can-

makes and sizes of dealerships. Bigger companies

not sit idly in a bin at the back of the Parts Department.

with long-standing processes are usually part of Twen-

And certainly not where you will soon write them off

ty Groups and have Parts Consultants/Trainers who

or sell them for pennies on the dollar.

are contracted. They remain in the low to mid 20% of

MARCH APRIL 2021 || FIXED OPS MAGAZINE

33



Fixed Ops Magazine - 2021 Vol18 02

Table of Contents for the Digital Edition of Fixed Ops Magazine - 2021 Vol18 02

Fixed Ops Magazine - 2021 Vol18 02 - 1
Fixed Ops Magazine - 2021 Vol18 02 - 2
Fixed Ops Magazine - 2021 Vol18 02 - 3
Fixed Ops Magazine - 2021 Vol18 02 - 4
Fixed Ops Magazine - 2021 Vol18 02 - 5
Fixed Ops Magazine - 2021 Vol18 02 - 6
Fixed Ops Magazine - 2021 Vol18 02 - 7
Fixed Ops Magazine - 2021 Vol18 02 - 8
Fixed Ops Magazine - 2021 Vol18 02 - 9
Fixed Ops Magazine - 2021 Vol18 02 - 10
Fixed Ops Magazine - 2021 Vol18 02 - 11
Fixed Ops Magazine - 2021 Vol18 02 - 12
Fixed Ops Magazine - 2021 Vol18 02 - 13
Fixed Ops Magazine - 2021 Vol18 02 - 14
Fixed Ops Magazine - 2021 Vol18 02 - 15
Fixed Ops Magazine - 2021 Vol18 02 - 16
Fixed Ops Magazine - 2021 Vol18 02 - 17
Fixed Ops Magazine - 2021 Vol18 02 - 18
Fixed Ops Magazine - 2021 Vol18 02 - 19
Fixed Ops Magazine - 2021 Vol18 02 - 20
Fixed Ops Magazine - 2021 Vol18 02 - 21
Fixed Ops Magazine - 2021 Vol18 02 - 22
Fixed Ops Magazine - 2021 Vol18 02 - 23
Fixed Ops Magazine - 2021 Vol18 02 - 24
Fixed Ops Magazine - 2021 Vol18 02 - 25
Fixed Ops Magazine - 2021 Vol18 02 - 26
Fixed Ops Magazine - 2021 Vol18 02 - 27
Fixed Ops Magazine - 2021 Vol18 02 - 28
Fixed Ops Magazine - 2021 Vol18 02 - 29
Fixed Ops Magazine - 2021 Vol18 02 - 30
Fixed Ops Magazine - 2021 Vol18 02 - 31
Fixed Ops Magazine - 2021 Vol18 02 - 32
Fixed Ops Magazine - 2021 Vol18 02 - 33
Fixed Ops Magazine - 2021 Vol18 02 - 34
Fixed Ops Magazine - 2021 Vol18 02 - 35
Fixed Ops Magazine - 2021 Vol18 02 - 36
Fixed Ops Magazine - 2021 Vol18 02 - 37
Fixed Ops Magazine - 2021 Vol18 02 - 38
Fixed Ops Magazine - 2021 Vol18 02 - 39
Fixed Ops Magazine - 2021 Vol18 02 - 40
Fixed Ops Magazine - 2021 Vol18 02 - 41
Fixed Ops Magazine - 2021 Vol18 02 - 42
Fixed Ops Magazine - 2021 Vol18 02 - 43
Fixed Ops Magazine - 2021 Vol18 02 - 44
Fixed Ops Magazine - 2021 Vol18 02 - 45
Fixed Ops Magazine - 2021 Vol18 02 - 46
Fixed Ops Magazine - 2021 Vol18 02 - 47
Fixed Ops Magazine - 2021 Vol18 02 - 48
Fixed Ops Magazine - 2021 Vol18 02 - 49
Fixed Ops Magazine - 2021 Vol18 02 - 50
Fixed Ops Magazine - 2021 Vol18 02 - 51
Fixed Ops Magazine - 2021 Vol18 02 - 52
Fixed Ops Magazine - 2021 Vol18 02 - 53
Fixed Ops Magazine - 2021 Vol18 02 - 54
Fixed Ops Magazine - 2021 Vol18 02 - 55
Fixed Ops Magazine - 2021 Vol18 02 - 56
Fixed Ops Magazine - 2021 Vol18 02 - 57
Fixed Ops Magazine - 2021 Vol18 02 - 58
Fixed Ops Magazine - 2021 Vol18 02 - 59
Fixed Ops Magazine - 2021 Vol18 02 - 60
Fixed Ops Magazine - 2021 Vol18 02 - 61
Fixed Ops Magazine - 2021 Vol18 02 - 62
Fixed Ops Magazine - 2021 Vol18 02 - 63
Fixed Ops Magazine - 2021 Vol18 02 - 64
Fixed Ops Magazine - 2021 Vol18 02 - 65
Fixed Ops Magazine - 2021 Vol18 02 - 66
Fixed Ops Magazine - 2021 Vol18 02 - 67
Fixed Ops Magazine - 2021 Vol18 02 - 68
https://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/fixed-ops-magazine-2024-vol-21-2
https://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/fixed-ops-magazine-2024-vol-21-1
https://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/fixed-ops-magazine-2023-vol-20-06
https://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/fixed-ops-magazine-2023-vol20-05
https://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/fixed-ops-magazine-2023-vol20-04
https://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/fixed-ops-magazine-2023-vol-20-3
https://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/fixed-ops-magazine-2023-vol-20-02
https://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/fixed-ops-magazine-2023-vol20-01
https://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/fixed-ops-magazine-2022-vol-19-6
https://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/fixed-ops-magazine-2022-vol19-05
https://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/fixed-ops-magazine-2022-vol19-04
https://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/fixed-ops-magazine-2022-vol19-03
https://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/fixed-ops-magazine-2022-vol19-02
https://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/fixed-ops-magazine-2022-vol-19-1
https://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/fixed-ops-magazine-2021-vol18-06
http://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/fixed-ops-magazine-2021-vol18-05
https://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/Vol18No05
https://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/fixed-ops-magazine-2021-vol18-04
https://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/fixed-ops-magazine-2021-vol18-03
https://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/fixed-ops-magazine-2021-vol18-02
https://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/fixed-ops-magazine-2021-vol18-01
https://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/Vol17No6/
https://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/Vol17No6/
http://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/Vol17No4/
http://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/Vol17No4/
http://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/Vol17No3/
http://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/Vol17No2A/
https://www.nxtbookmedia.com