November 2026: An ACG "Smart Parts Exclusive: ACG "Smart Parts" Inventory Protection Guidelines

As we get closer to the end of yet another year here at ACG “Smart Parts”, we thought we would focus on preparing for “Parts Year End”. Of course, that would include performing the Parts Physical Inventory.

After the Parts Inventory has been performed, the “new” parts count is then reconciled with the Parts Accounting Ledger Balance. This reconciliation compares the Parts Inventory Count to the “Dollar Amount” on the Parts Ledger Balance on Page 1 of every Dealer Financial.

This process is done annually to confirm any variances between the two, which the accepted variance amounts is usually 3% - 5%, depending on the Certified Public Accountant (CPA). This variance between the PAD Inventory and Ledger Balance should be what’s called an “uplift”.

This uplift is a variance where the PAD, or “Controlled Inventory” is higher than the Ledger Balance Inventory after the Physical Inventory has been completed. A variance either way represents a 100% profit gain or loss for the Parts Department.

This process is usually performed at the end of each fiscal year in dealerships, which most often is also the end of each calendar year. The results, or “variances” between the two inventories can be disastrous or a pleasant surprise.

To achieve a pleasant surprise, as opposed to the “shock factor” on negative results depends on the preparation and process throughout each year starting on January 1^st. Believe it or not, Protecting the Dealers Parts Investment involves many aspects, or “Guidelines”.

These Guidelines are many and involve many things that we may be overlooking every day. These Guidelines may also involve many things that we find ourselves saying…”We used to do that”, but we stopped doing it and got lazy.

Even though many “good practices” start out well, they seem to go away until something happens and then we wonder why. It’s kind of like dealing with OSHA, (Occupational Safety & Health Administration) where there is never a problem until they show up at our door.

In this issue of ACG “Smart Parts”, we are going to give our readers a “freebie”, which is our ACG Smart Parts Inventory Protection Guidelines in it’s entirety. These guidelines have been provided to many of our ACG “Smart Parts” Dealers and now we are going to give to all of you.

It’s time to once again prepare for Parts Year End, but this time, our “Smart Parts” Readers can have a head start in the preparation process. You just may be surprised at what these guidelines reveal and what we may take for granted.

Here We Go!...In its Entirety and as written in our ACG Smart Parts Dealer Installation Program!

 

“Smart Parts” Parts Investment Protection – Guidelines

Protecting the Parts Inventory Investment is crucial to the Automotive Dealer as the Parts Inventory is generally the Dealer’s second highest asset next to the Used Vehicle Inventory. Protecting this asset includes Accountability, Consistent Reconciliation, (monthly), Security and Basic Accounting Practices to insure the highest Return on Investment. The following guidelines and recommendations should be considered in the Overall Protection of the Parts Inventory.

Parts Inventory Reconciliation:

Parts Reconciliation should be monthly practice to compare and balance both the Accounting Ledger Balance Inventory and Controlled Parts Inventory, (D.M.S.) to include all Parts Inventories listed on Page 1 of the Dealers Financial. These monthly reconciliations can be accrued throughout the year and balanced at the end of each year after the Parts Physical Inventories have been performed. Doing this “practice” monthly allows for an easier way to track down discrepancies over 30 days versus the whole year.

 Process Recommendations:

Ø Parts are ordered by authorized parts personnel utilizing Dealer Management System, (D.M.S.), or via Automated Purchase Order System. Purchase Orders to be filled out completely, itemized, priced with proper accounting.

Ø Ordered parts are received in the parts shipping/receiving area or front parts counter with all Packing slips and Invoices verified and signed by authorized parts personnel. Parts are receipted into the D.M.S. into the proper Source with all counts verified before any parts are billed to repair orders or parts counter invoices. 

Ø Parts orders, packing slips, and invoices are to be reconciled and filed accordingly in the Parts Department for accounting purposes. Once reconciled in the Parts Department, all invoices are turned into the Accounting Office with Parts Manager’s Signature of approval.

Ø All invoices need to be stamped properly with an “Accounting Stamp” and signed by the Parts Manager. Accounting Stamp to include the proper inventory account, discounts & allowances amounts, (if any) accounts payable account and signature. All completed and verified invoices are sent to Accounting Department daily.

Ø Parts are shelved and stored in secure area with proper bin location, special order bin, or Collision Center Staging Area.

Ø Parts do not leave secured areas unless billed on proper dealership document, i.e. repair order or parts counter ticket.

Ø Secure all parts shipping and receiving areas with locks, or passcode entry systems. Access to the Parts Department is reserved to authorized personnel only.

Ø All parts deliveries are to be verified by the Parts Manager to ensure parts being delivered match the customer invoice.

Ø Consignment Parts Cabinets, (if equipped) for Express Service need to be locked at the end of each day and opened at the beginning of each day by authorized parts personnel. Keys for Consignment Parts Cabinets to be secured in the Parts Department only.

Ø Daily parts inventories need to be performed twice daily on Consignment Parts Cabinets, at the beginning and end of each business day and reconciled with daily sales and stock replenishment requirements.

Ø All bulk oil systems need to be metered and controlled in the parts department to control access to bulk oil system inventory supplies.

Ø Outside storage units always need to be secure with key access only to authorized parts personnel. 

Ø Duties & Responsibilities for Collision Center Parts Personnel

 

·     Maintain and secure all Collision Parts Inventory, including storage, staging and technician stalls.

·     Work directly with Collison Center Manager and Estimators, researching, listing, and ordering parts requested and required for Collision Center Estimates.

·     Proper invoicing of all parts to repair orders with appropriate pricing as per the vendors’ invoice.

·     Manage all Collision Center Returns and ensure all returned parts are stored or returned to the appropriate vendor. Ensure all credit documentation is accounted for including inventory adjustments into DMS.

·     Work directly with Collision Center Manager on estimates, customer promise times, dispatching, technician and shop issues, and inter-department relations.

·     Maintain all shop areas including main shop, paint booth, paint storage area, general security, and potential safety concerns.

·     Oversee all “on-site” vendors and purchases from vendors on all parts and supplies to prevent overstocking, understocking, and potential pricing issues.

·     Technicians should not be allowed to access small parts & supplies normally stocked in drawers or small cabinets without parts personnel. Small Parts are to be billed accordingly on repair orders, or parts counter invoices.

 

 Housekeeping/Security:

Housekeeping is a major concern and can play a big role in the overall parts discrepancy between the Ledger Balance and Controlled Parts Inventories in the D.M.S. Controlling, maintaining, and securing all parts storage areas should be the number one area of accountability for the Parts Manager.

Process Recommendations:

Ø   All entryways and exits and overall access into the Parts Department and all other parts storage areas should be locked with access only to authorized parts personnel.

Ø Technicians, or all other unauthorized personnel should not be allowed into the Parts Department. Shop Supplies should be separate from Small Parts normally stocked in bin drawers. Small parts in drawers billed to the Parts Accounting Inventory should billed accordingly on repair orders, or parts counter invoice.

Ø  Small parts listed as “shop supplies” and expensed to the appropriate department need to be secure and supervised on technician needs. Technicians should not be allowed into the Parts Department unsupervised.

Ø  Vendors replenishing small parts and shop supplies should not be allowed to “fill the shelves” without the Parts Manager. All stock replenishment purchases must be approved by the Parts Manager and accompanied with the proper, “detailed” Purchase Order.

Ø  Small parts, or Shop Supplies not billed to customers should be billed on a Service Department Shop Ticket, or Repair Order”. Shop Tickets, and Shop Repair Orders need to be closed on a weekly basis with Parts and Service Manager Approval.

Ø  All small parts or shop supply packing slips and invoices need to be reconciled to the original detailed Purchase Order upon receipt.

Ø  Floors must be cleared of all parts and clutter, except for heavy parts such as engines, transmissions, differentials, etc. Bulk parts need to be stored in larger bins, or stalls to maintain an orderly appearance and part identification.

Ø  All parts documentation including parts orders, packing slips, invoices, labels, or any other pertinent documentation must be filed, stored, or disposed of properly. Filing cabinet and cabinet area need to be maintained and labeled accordingly to identify and separate daily and monthly paperwork for accounting purposes.

Ø  Dirty cores need to be stored and inventoried in a secure area including larger cores such as engines and transmission. Larger dirty cores such as engines and transmissions, if not covered or packaged properly, cause environmental risks and potential fines for non-compliance to OSHA regulations.

 Ø General housekeeping practices should be followed maintained accordingly on front and back counter areas as paperwork, clutter and parts need to be organized and maintained.

Ø  Parts mezzanine areas need to be organized with proper bulk shelving and storage to make better use of “air space” and separated from all other storage items. Access to upper mezzanine storage areas should be limited to authorized personnel. In many dealerships, exits from upper levels is a great escape for parts, if not secured.

Ø  Parts paperwork throughout the Parts Department should be organized and filed in designated areas or filing shelves. “In & Out” paperwork for invoices, receipts, purchase orders, repair orders, picking tickets, etc. should be separated and marked accordingly to promote proper overall paper flow to and from the Accounting Department as well as Dealership Departments.

Are you prepared for “Parts Year End”?

One thing for sure is if you are not prepared and if your results on the year end Parts Physical Inventory are not what you thought they should be…maybe, just maybe you may want to remember that “Preparation is the Key to Success!”

 If you want to learn more about ACG Smart Parts "Eight Habits of Highly Successful Parts Managers", visit our website @ www.smartpartstraining.com, or...just pick up the phone and call me at :

(786) 521 - 1720...After all, not knowing is not worth not "fixing" it...

 

October 2026: "Beating Obsolescence & Choosing the Right Obsolescence Vendor

As we move on to our 201st Issue of ACG "Smart Parts", we will continue to provide our Dealers & Parts Managers the latest Parts News, Updates and Personal Insights. Even though we all know that "Parts is Parts", there is always something new to talk about.

In our October issue will be focused on a topic we are all familiar with and that is Parts Obsolescence. We also know that Parts Obsolescence is one of the top issues our Dealers are concerned about in Parts, second only perhaps to Parts Sales & Gross Profits.

Controlling Parts Obsolescence is one of our toughest jobs each day and one that can keep us awake at night. But imagine or perhaps "dream" if we had a process that could eliminate Parts Obsolescence all together?

Even though we can never really prevent Parts Obsolescence from happening as parts will go obsolete at an average rate of 5%-10% each year. But what if we could have a process that could keep our Parts Obsolescence at a minimum of less than 5% all the time?

If we don't have a process or "game plan" to manage Parts Obsolescence, the obvious result is that it will just keep piling on each month and year. Pretending it's not there will just end up out of control.

Increasing Acquisition & Holding Costs, lower Gross & True Turns, higher Days Supply as well as higher variances on the Ledger Balance Inventory. The list of ramifications of excess Parts Obsolescence goes on and on.

Achieving this goal of 0%-5% Parts Obsolescence is not a myth as many of our "Smart Parts" Managers are experiencing these low Parts Obsolescence Percentages each month. To achieve this feat, we have to have a "recipe" which includes five important factors.

Number One: Commitment

Number Two: "Don't Buy Obsolescence!"

Number Three: Utilizing Your Parts Return Reserves

Number Four: Choosing the Right Obsolescence Vendors

Number Five: "Protect Yourself!"

"So!..How Do We Accomplish All This and Be Free of Obsolescence and Keep It from Coming Back?"

Let's Begin!

Number One: Commitment

The Parts Manager needs to be committed to achieving essentially "Zero Obsolescence". This mindset is first and foremost by realizing that there is a 98% chance of not selling parts that have not sold over 12 months.

Initially, it may seem tough as it was for me as letting go of a part that you've known very well and have sold for months or years may not make sense. It was almost like saying "good-bye" to an old friend.

Sticking to the plan is crucial and must be our very first step. Otherwise, all the rest that follows won't matter if we have a tough time letting go. We must stick to the facts and go with what the math tells us.

Number Two: "Don't Buy Obsolescence!"

Special Orders and some of the Manufacturers Vendor Managed Inventories, (VMI's) are notorious for building Parts Obsolescence. Without a Special Order Parts Process and managing our Manufacturers’ VMI Program, we could be just adding obsolescence.

Without a Special Order Parts Process, or "Policy", Special Orders can be considered "Purchased Obsolescence". They call them "Special Orders" for a reason as we do not stock these parts as they have not met initial Phase-In Criteria. 

If these parts do not get installed and/or sold, they could become "Purchased Obsolescence". The ironic thing about "Purchased Obsolescence" is that many Parts Managers avoid stocking the "right parts" because they think they are buying obsolescence.

Even though a part meets Phase-In Criteria, they shy away from stocking it because it may be too expensive, or they think they may get stuck with it. Totally opposite from what we are referring to as "Purchased Obsolescence" above.

Special Ordered Parts should also be returned, (if not sold) after 45 Days, no matter what the return costs. Return Fees should be applied to responsible parties who authorized the Special Order. If not returnable, they should be sold to Obsolescence Vendors.

As far as the Manufacturers' VMI Programs, being "compliant" is one thing, but being "obedient" is another. Simply approving Daily Proposals without "drilling down" each part number can and does lead to "Purchased Obsolescence".

Number Three: Utilizing Your Parts Return Reserves

May seem obvious, but you would be surprised at how many Parts Managers do not utilize all of their Manufacturers' Parts Return Reserves. Even worse, they don't take advantage of all their opportunities to build even more Parts Return Reserve.

The lack of creating and sending Stock Orders, especially Supplemental Stock Orders on the DMS, (if the math is set up correctly). This lessens the opportunity for higher Purchase Discounts and Return Reserves.

Unused Return Reserves are not so uncommon and if not taken or utilized will be eliminated after the first few months of each year for the previous year. It ends up as wasted cash in the long run.

Number Four: Choosing the Right Obsolescence Vendors

First and foremost, we all need to know that a starting price of $.50 cents on the dollar is not a "made up number". Most don't realize that the IRS Standard Accounting Method states that the value of any inventory or commodity that has not sold in 12 months has an estimated worth of half its initial value.

Second, we should start looking at Parts Obsolescence at 10 Months - No Sales and start shopping these parts out to Obsolescence Vendors. Waiting until 12 Months or Over before shopping them out lessens the chance of getting rid of them or getting the best price.

The most important part of choosing the right Obsolescence Vendors is to have more than just one. We need to take advantage of all of our Obsolescence Vendors and all of the offers out there.

We also must realize that some Obsolescence Vendors may not accept or offer as much as another vendor. This is why we need to use as many as we can to find that are reputable and pay the highest return.

We also must include added costs and shipping of course in our final "net return". In many cases, it may not be wise to use different vendors as added costs and shipping make it worthless to send back, and this is why our Number Five is so important.

Our "Top Five" Obsolescence Vendors are as follows, but keep in mind there may be many others. Again, most important is to have several to work with to weigh all of our options;

dealermine.com

oeconnection.com, (Parts Broker Direct)

partsfisher.com

findrareparts.com

youngautomotive.us

Number Five: "Protect Yourself!"

Every Dealer should have an "In-House Parts Scrapping Program" as well as the right Parts Phase-In & Phase-Out Parameters in their DMS. Prevention is key, but we also need to have that "Parts Kitty" to get rid of what's left after utilizing all the above four factors.

Building an "In-House Parts Scrapping Program" allows us to use this final option to get rid of all Parts Obsolescence. Much like having a Used Vehicle In-House "Bruise Account", we can tuck away some money aside to scrap these parts after all the above options have been utilized.

This final option is not new as many Dealers tuck a set amount aside for "Parts In-House Scrapping". What may not be new is how we determine the amount and how much we set aside each month.

By setting aside a certain percentage of Customer Pay Repair Order Parts Gross Profit, it becomes much easier to manage and build our "In-House Scrapping Program". If we were to take 1%-2% of our CPRO Parts Gross Profit and charge it back to Cost of Sales, we can put that money into our "In-House Scrapping Program".

We can easily manage this CPRO Gross Profit deduction by increasing our Parts Matrix by 10% Above Cost, which will net a 2% gain in Parts Retained Gross Profit Percentage. This would result in a "wash" and allow month-to-month fluctuations that will flow with Gross Percentages as opposed to one flat, set amount each month.

I can only say from experience that there is no better feeling than being a Parts Manager that does not have to worry about Parts Obsolescence. It also changed me from being a "cautious, worrisome" Parts Manager to an "aggressive" Parts Manager.

It changed me from not buying parts because I was too worried if they didn't sell or too expensive, as I felt they would just add to my obsolescence. Once I didn't have to worry about Parts Obsolescence, my First Time Off Shelf Fill Rate took off.

I had more of the right parts and magically, my Parts Obsolescence was shrinking as I had more of the right parts. They then "phased out" when they got to the end of their "life cycle". Even though I had my Scrap Account, less fell into obsolescence

 Last Question...

 "Would You Like to Sleep Better at Night and Not Worry About Parts Obsolescence?"...Maybe It's Time to Take That Giant Leap of Faith!"

  If you want to learn more about ACG Smart Parts "Eight Habits of Highly Successful Parts Managers", visit our website @ www.smartpartstraining.com, or...just pick up the phone and call me at :

(786) 521 - 1720...After all, not knowing is not worth not "fixing" it...

 

 

 

 

 

 

 

 

 

September 2026: "Working With Our Technicians"

Let's begin our September Issue of ACG "Smart Parts" by "painting a picture" of a typical day at the Parts Department Back Counter. Everyone starts showing up around 7:30 or so and the Back Parts Counter window is opened for yet another day.

Initial daily greetings start between Parts Counter Staff and Technicians, drinking our first cup of coffee, or perhaps a preferred energy drink to kick the day off. Conversations start with some talking about the game last night, or perhaps some techs looking for parts to get the day started.

The "Back Counter" is almost like the water cooler where people come to chat, have conversations in general and eventually get on with their work. I've often said some techs are like bananas as they come in a bunch.

When the Service Manager sees a stack up at the Parts Counter and wants to know what's going on, the answer is usually the same. That answer is "We are Waiting for Parts!" and now the blame gets shifted to the Parts Department.

This daily routine is not only typical, but also unavoidable as the relationship between Parts Counter Staff and Service Technicians is necessary. In most cases, vehicles cannot be repaired or maintained unless we have a part and a technician.

This interaction at the Parts Counter involves constant communication, understanding and an overall objective over and over throughout each day. In other words, everyone has to get along on both sides in order complete this repair process.

This one simple daily interaction between Parts Counter Staff and Technicians happens over and over each day. If the overall outcome of these countless interactions throughout the day are not positive, they could lead to what we all know as a wall between Parts & Service. 

We all know from our side in the Parts Department what our role is supposed to be. We are supposed to provide what the technician needs in order to complete most of the repairs on the customers vehicle.

Sometimes though, if not most often, we look at it from our perspective and not theirs. In other words, we may think that we are in control because we have something they need as opposed to the other way around.

In my opinion, we all need to stop and think what the technician sees and not what we see. Can you imagine coming in each day, (if you are a flat rate technician) and not knowing how much you are going to make each day?

In the Parts Department, we pretty much know what we are going to make as most Counter Staff are paid either hourly, or perhaps a salary with incentives. Flat Rate Technicians on the other hand depend on us heavily in order to achieve their monetary goals.

In this issue of ACG "Smart Parts", we are going to break down this relationship and hopefully, we will see how much we actually depend on them. We will also see how valuable our technicians are to us.

Furthermore, we will actually see how certain techs can actually help us get better in having the right part at the right time and be more profitable. We will break down each Technician Skill Level and how they actually help us achieve our Parts Department Goals.

We all know that overall, we all need each other, but we will take it further and answer what I believe is the main question...

"How Can Our Technicians Help Us Get Better in the Parts Department?"

Here We Go!

In my opinion, the Parts & Service Relationship is one of the most important relationships that may be overlooked in many dealerships today. We can tell though which dealers have a great relationship between these two departments as these are the dealers that have great "Service Absorption".

We often tend to look at the success of our Fixed Operations by individual departments and their role in the dealership. What we don't often look at is our Fixed Operations as one department.

Even though all of the Fixed Operations Departments factor into the "Service Absorption" Category, we may tend to look at them individually. In my opinion though, we will never achieve "Bullet Proof" Status of 100% or more in Service Absorption unless they all work as one.

In this issue though, I want to address the issue of "dependency" as in who is more "dependent" on the other in Fixed Operations. Even though we may all feel that we are all independent, I want to "flip the switch" and look at how we, in the Parts Department need or "depend" on our technicians.

Keep in mind that I'm not referring to the obvious where we need our technicians to install the parts that we sell. What I'm referring to is how they can help us sell more parts and most importantly, how we can have more of the right parts at the right time.

We will break down each Technician Skill Level starting at the lowest Skill Level, usually "D" Level Technicians, all the way to the top with our "A" Technicians. Believe it or not, we need each Skill Level, and each one can contribute and help us get better in the Parts Department.

Lastly, and before we get started, keep in mind that all technicians have eyes and see what we don't see in the Parts Department. That being said, I would like all "Smart Parts" Readers to perhaps try and see what they see and perhaps learn something from their perspective.

"D" Skill Level Technicians:

This Technician Skill Level is usually the "Entry Skill Level" where all technicians usually start their careers. Even though some of these "D" Techs have attended tech schools prior, they still have to come in at "D" Level and work their way up the ladder.

Most common Labor Operations they may perform include Minor Maintenance Operations like Oil Changes, Mount & Balance Tires, Tire Rotation, Air & Cabin Filter Replacement, Battery Replacement, etc.

One of the most important operations that the "D" Level Technician has to perform and, in my opinion, the most important is to perform a "Quality" Multi-Point Inspection. Even though they may not be qualified to perform some of the repairs found on this inspection, they can surely identify what's needed if trained properly.

Now, think about how this can help and impact Parts Sales and how many of these inspections these "D" Technicians perform each day. The most common Service Operation is a Lube, Oil & Filter Service and how many do they perform each day?

With the majority of vehicles that come in each day to have a Lube, Oil & Filter Service with well over 60,000 miles. That being said, it's pretty obvious that the Multi-Point Inspection, (MPI) is probably the most important operation that "D" Level Technicians perform.

Just think about the opportunities out there that they see for the Parts Department to increase Parts Sales & Gross Profits. Of course, we need the Service Advisors to have proper Presentation Skills and a High Closing Ratio with our Customers to realize these opportunities.

"C" Skill Level Technicians: 

As the technician works up the ladder from "D" Skill Level into the "C" Skill Level, they also graduate up into more capable Labor Operations. Labor Operations like Front End Alignments, Minor Brake Repairs, Fluid Exchanges, Minor Diagnosis, etc. are now added in this Skil Level.

Once again, first and foremost, performing a quality MPI is the most important Service Operation. Next, and when we think about Wheel Alignments, Suspension & Brake Components are now in play as Upsell Opportunities increase.

Not only that, the Technician "Efficiency" also becomes more important as Service "Cycle Time" helps sell more parts more often. As the "C" Technician moves up the ladder in Skill Level, having the right part becomes even more crucial.

Also, at this stage with the "C" Level Technician, they now become a "resource" for Parts Lost Sales Reporting. Even though all Technicians Skill Levels are a resource for Lost Sales Reporting, "C" Level Technicians are becoming more productive and see more vehicles than "A" and "B" Technicians.

"B" Skill Level Technicians:

Moving up to the "B" Level Technician, this is where we see these techs are now moving up to more Diagnostics & Repairs. Powertrain & Driveline Repairs, Minor & Major Brake Repairs, Suspension Repairs and Heating & AC Repairs.

All of these repairs tend to include what I call the "Meaty Parts" that allow us to utilize the Parts Matrix to increase Parts Retain Gross Profit Percentages. Captive Parts are usually our biggest opportunity to utilize the Parts Matrix to increase gross percentages.

They also see more and replace more of the same parts over and over again. They will tend to see trends of what parts were available and which parts were not on "first visit" to the Parts Department.

At this point and at this Skill Level, we tend to see these techs turning more hours with the Parts Department being a big player in what they earn from Billed Hours. At this Skill Level and as a "Smart Parts" Manager, we need to be more aware of how they can help us grow in the Parts Department.

This is also where we should be more reliant and depend on them for information that can lead to more Parts Sales, Higher Gross Profits, (Matrix Parts) and Higher First Time Fill Rates as well as Higher Gross & True Turns.

In my opinion, I want these techs to turn more hours by having more of what they need at the right time. It's also at this point that we see these "B" Techs, (and "A" Techs for that matter) saying that we should stock this part or that part.

This is a "crossover" point for Parts as we all know that many techs think we should stock everything not realizing the ramifications of obsolescence, overstocking and space issues on our end.

This is also where we need to start thinking about meeting somewhere in the middle of what these techs can offer us. We can listen while still being cautious of the above ramifications as well. Lastly, the "B" Skilled Technician, (as well as the "A" Skilled Technicians) can provide us more Lost Sales Opportunities.

"A" Skill Level Technicians:

Now we are coming to the "cream of the crop" as the "A" Skill Level Technician is probably our biggest asset and partner in having the right part at the right time. They can also provide a wealth of information that we don't see on paper.

Going back to my early years as a Parts Manager, I always relied on my Master "A" Techs or Shop Foreman for this information that I don't see. Not only for having the right part, but also those "relative" parts that we will need to complete major repairs.

After all, what's the point of having a turbo in stock if we are not going to have the hoses, gaskets, nuts and bolts to complete the repair. One of the most common Parts Manager mistakes nowadays is not having those "one time use" parts in stock.

The "A" Skill Level Tech, or Shop Foreman should also be invited into what we call our "Stock Order Meetings" at least a couple times a week. As Parts Managers, we tend to look at the Stock Order much differently than they would.

We tend to look at history, how much the part costs, will we be stuck with the part and adding to obsolescence, model year usage or availability, etc. They simply look at what the part is and what parts tend to tie up lifts.

This coalition between the Parts Manager and the "A" Skilled Technician, Shop Foreman or Service Manager in these "Stock Order Meetings" is essential. If we choose to "go it alone" as Parts Managers, we may have a "clean inventory", but we may also have a low "First Time Fill Rate".

We can have Higher First Time Fill Rate, Controlled Obsolescence, Higher Sales & Gross, Higher Gross & True Turns and Higher Service Absorption. There should never be a wall between Parts & Service, only a door that that opens both ways.

Achieving a High Service Absorption Rate only comes from the Fixed Operations working as one and utilizing all of our Fixed Operations Employees and Assets. Our Service Technicians should be our first "go to" for information as we need them as much as they need us.

If you want to learn more about ACG Smart Parts "Eight Habits of Highly Successful Parts Managers", visit our website @ www.smartpartstraining.com, or...just pick up the phone and call me at :

(786) 521 - 1720...After all, not knowing is not worth not "fixing" it...