6 Tips to Make Your Parts Inventory More Organizable

6 Tips to Make Your Parts Inventory More Organizable

Sometimes it can seem like no one notices when you do a good job managing the company’s auto parts inventory.

However, reducing the stress of searching for parts and waiting for them to arrive can make a big difference in your business. It will improve customer service, employee morale, and ultimately, revenue.

While there might be some adjustment to make, it can pay off for everyone to take the time and design the best inventory system they can.

These 6 tips will help you get started when redesigning inventory management strategies to improve your bottom-line.

Prioritize Parts Inventory

Every part in your inventory might not be as crucial to your business. It will make it easier to organize your parts according to priority. This will allow you to make inventory decisions, such as when to reorder and how many.

You should keep more oil and filters than you use every day. Stocks of parts that are used less frequently, like brakes, oil, and bearings, tend to be smaller. They also get lower before they can be replaced. Special order parts should only be ordered when the job calls. These parts are either large or costly and take up space as well as capital. This also includes parts that only fit certain vehicle models or situations. Prioritizing inventory and restock quantity should consider delivery times, likely parts being backordered, as well as whether the part is at high risk of becoming obsolete.

Although this may seem obvious, knowing how much inventory you have throughout the year will allow you to make better decisions and work with less.

  • Sometimes, it can be difficult to decide how much of a particular SKU you should have. Even if you know which parts are most important.
  • Many of these factors are due to seasonality, as well as the constant introduction of new cars.

The good news? You have access to inventory data which can help you forecast. This data will be more accurate if your inventory records are well maintained. This will allow you to avoid over ordering, reduce the risk of obsolescence, and better optimize your manufacturer return program.

Access

It may seem easier to let everyone grab the parts they need but it will only lead to more problems over the long-term. That means you’ll spend more time fixing the problem.

Parts counter employees are the only ones who should have access, and can pull apart and replace. Parts employees must be trained and held responsible. Although it may cause conflict between teams, once it is implemented, it will eventually make everyone’s job much easier.

Fill In Parts Inventory Details

Your inventory management software likely has many fields for each component. Barcode data, SKUs and cost information, as well as supplier, cost, and reorder points are all possible fields in your inventory management software. Although it may seem redundant to fill it all out, it can help save time and money in the end.

Count, count, count

Many departments are limited to a single annual inventory count. The idea of doing more can cause stress and can become tedious. However, it is possible to reduce inventory losses by doing more counts and identify problem areas.

If you don’t have the resources or time to do multiple counts per year, rotate inventory counts by sections or concentrate on trouble SKUs that have losses often.

Suppliers

Sometimes we can get so comfortable working with the same suppliers that delays, and other problems, become the norm. However, it is important that you do an internal audit of your suppliers to see if they are frequently late or constantly placing parts on backorder.

If you begin to notice patterns that are disrupting your productivity or inventory management, it is time to look for a different supplier.

Procedures

  • Written procedures can be helpful in ensuring that everyone is following the same process.
  • It is possible for small errors in stock receipt, pull and return to have a significant impact on the operation of the parts department. Make sure you take the time to write and update procedures. Also, make sure to keep everyone informed and follow up.
  • The most important thing is to be open-minded about suggesting any changes that would improve the efficiency of your procedures. Your employees do these jobs every day, and they might have some interesting insight into improving processes.

Additional Resource:
https://www.oreillyauto.com/
https://www.denso.com/global/en/business/products-and-services/mobility/parts-accessories/
https://fred.stlouisfed.org/series/PCU44134413

Related Posts

Comments

Stay Connected

1,000FansLike
1,000FollowersFollow
1,000FollowersFollow
spot_img

Recent Stories

error: Content is protected !!