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
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Fixed Ops Magazine - 2021 Vol18 02 - 67
Fixed Ops Magazine - 2021 Vol18 02 - 68
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