Your Automotive Dealership Should Have a Mid-Year Inventory Review
An important Automotive Dealership of any department that manages automotive parts is the annual inventory count. These records confirm that your inventory has been accurately recorded at the end of each year and during tax filing season.
Regular counts can help you improve your management, identify problem areas and find ways to increase efficiency. Here are four reasons to take a mid-year inventory.
#1 – Cost savings
A mid-year inventory count will help you identify problems in your inventory management system that can decrease inventory shrinkage. It can also highlight patterns that might be harder to spot after one year of transactions. You can also use the data to forecast trends and increase turnover. This will help you reduce obsolescence and over-ordering.
While multiple inventory counts per year can improve your records’ accuracy, it is not necessary to count your parts again at the end. This can lead to additional savings.
This is because auto dealers usually count their inventory at the end of the fiscal year, meaning that inventory management companies are in greater demand. Inventory management companies will offer discounts and more time during the middle of the fiscal years.
#2 – Increasing profitability
No matter the time of year, a physical count will improve profitability. A count will ensure that your parts are accurately accounted for, assigned values are correctly and that the parts department can work efficiently and effectively. Your employer’s productivity and that of your business will be increased by ensuring your on-shelf count matches your computer count.
#3 – Improved customer service
It’s frustrating for customers when work is delayed on their vehicle. You’ve probably been in a situation where your customer’s car was not fixed by a certain date.
It was because you thought all parts were in stock, but later discovered that one was missing. It could have been lost, misplaced or used for another job. This will make it easier to provide customer confidence and remove any worries about your physical inventory.
#4 – Unload parts prior to they become obsolete
You can identify trends in sales that could lead you to obsolescence by reviewing your inventory and records several times per year. You will have the opportunity to sell parts before there is demand.
This could include increasing sales by marketing and promotion, reopening other shops or service centers and reaching out to them to find out if they require additional supply.