August 2026: Parts Stocking Status: " What's the Overall Impact?"

Many Dealers today are actively involved in various National 20 Groups whether NADA, NCM, or perhaps others. One thing for sure though whether they are or are not, they all have expectations, or "guidelines" that we all have to measure up to.

These "Industry Guidelines" are set for every dealership department and the Parts Department is no exception. In March of this year, we actually "drilled down" our Parts Industry Guidelines.

We went through all of these Parts Guidelines as well as providing the definitions of each one. We also touched on how many of them are related and how they tend to "trickle down" in measuring our overall Parts Performance.

What we did not focus on in March was how important it is to have the right numbers in the first place before we even start to compare and measure these Parts Industry Guidelines. After all, if our initial Parts Setups & Controls aren't accurate, there's no point in trying to "measure up" to our Parts Industry Guidelines.

In my opinion, there is one Parts Category that is Number One in determining so many Parts Industry Guidelines and that one is "Parts Stocking Status". In this issue of ACG "Smart Parts", we will go through all the Parts Industry Guidelines that can be impacted by Parts Stocking Status.

First, let's list out the Parts Categories & Industry Guidelines that can be impacted by our Parts Stocking Status. Keep in mind when I talk about "Parts Stocking Status", I'm referring to what parts are considered Normal Stocking Parts, Non-Stock Parts, Active Parts and In-Active Parts.

• Normal Stock Parts in Inventory: 75% - 85%
• Non-Stock Parts in Inventory: 15% - 25%
• Stock Order Performance: 75% - 85%
• Overall Off Shelf Fill Rate: 90% - 95%
• First Time Off Shelf Fill Rate: 75% - 85%
• Lost Sales Reporting: 5% - 10% of Total Sales at Cost
• Emergency Purchases: 10% or Less
• Inventory Gross Turns: 8 Turns Annually
• Inventory True Turns: 5 Turns Annually

After looking at all these Parts Industry Categories & Guidelines, you have to ask yourself one simple question:

"How Can Our DMS's Parts Stocking Status Impact ALL of These Parts Industry Guidelines?"

Let's Begin!

In my opinion, there is no better place to start then at the beginning, and in the case of determining "Parts Stocking Status", the beginning starts with the initial DMS System "Default" Settings, and then the Parts Phase-in and Parts Phase-Out Parameters. 

Every DMS has to be set up initially with System "Default" Settings with a Primary Source or Stocking Group for parts entering into the system from the Manufacturer. An analogy would be to consider your Parts Inventory as your "house" and all parts have to enter in through the front door.

The address on that front door is "100 Parts Drive", with the number 100 considered as our Main Parts "Default" Source or Stocking Group. This primary "Default" Source or Stocking Group also has to be set up as the main "Non-Stock" Source or Stocking Group.

When a part is born into the system, it's usually a "Non-Stock" Part purchased for the first time, it needs a place to go in the house. If the main "Default" Source or Stocking Group is set up as "Normal Stock" instead of "Non-Stock", (which I have witnessed), Stocking Status is incorrect right from the start.

Parts need to default to a "Non-Stock" Status initially before Parts Phase-In and Phase-Out can begin. They have to enter into the "house" as "Non-Stock", go into the Main "Default" Source or Stocking Group, or primary "room" in the house. From there, they have to wait for instructions on where to go next, determined by the Phase-In & Phase-Out Criteria.

The Phase-In Criteria is the Number One setting that will determine if a part will be considered a Normal Stocking Part, (Family) or a Non-Stock Part, (Visitor) in the house. After we have the proper address on the front door, (Main "Default" Source or Stocking Group), we can set our Phase-In Parameters.

The Phase-In Parameters measures the total demand required, (Sales & Lost Sales) for a part to become part of the family, (Normal Stock Parts). This total demand is measured for a period of days or months until demand has been met.

Once demand has been met, the Parts Manager then determines if they want to accept that part as a Normal Stock Part with the appropriate Stocking Status. If a part has not met the Phase-In Parameters, it will remain as just a visitor in the house, or a Non-Stock Part.

As you can see from this analogy, if the initial "Default" Source or Stocking Group is not set up as "Non-Stock" from the beginning, Stocking Status is already inaccurate. Secondly, if the Phase-In Parameters don't have the proper number of demands required over a period of time, parts can Phase-In either too early or too late.

Either one, (too early or too late) will determine the Stocking Status of that part and may be adding parts too early as Normal Stock or prevent them from ever being considered a Normal Stock Part.

The Phase-Out Parameters have to be set up accurately as well and after the initial Phase-In Period. If the Phase-Out Parameters are set up "within" the Phase-In Cycle, parts will never Phase-Out, thus remaining a Normal Stock Part forever. This example would lead to parts that are actually obsolete but still considered as Normal Stock Parts.

So!...What would be the "Impacts" on all these Parts Industry Guidelines if we don't have the right Set Ups & Controls we just mentioned?

Normal Stock Parts, (or Active): 75%-85%

If the Parts Phase-In Parameters are not set up correctly with the right number of demands over a period of days or months, early Phase-In could happen. If incorrect, parts could phase-in to a Normal Stocking Status instead of remaining a Non-Stock Part.

In addition, if the Phase-In Parameters require too many demands over too long of a period, parts that we should consider as a Normal Stock Parts remains in the Non-Stock Status. Parts that are kept in this "prison", would never have a chance to qualify as a Normal Stock Part.

Non-Stock Parts, (or In-Active): 15%-25%

This opposite effect often happens when the "DMS Language" isn't defined properly. Measuring "total parts demand" over 8 months for Phase-In is totally different from measuring "demand of at least one" in 3 separate months over a period of 8 months.

I have witnessed these Phase-In Parameters being totally "misread" in the DMS. In one case, after it was all said and done, a part would have to have at least 3 demands in 3 consecutive months for a total of 9 demands in order to Phase-In.

Not only that and in case of the above scenario, these 9 demands would have to happen in 3 consecutive months. In other words, if we miss one month of at least 3 demands, the process will have to start all over again. 

This scenario actually "prevents" parts from phasing in as they remain in prison and will never get out and become a Normal Stock Part, (part of the family). This will also show a lower amount of Normal Stock Parts and would have to be Special Ordered as they will not show on a Suggested Stock Order.

Stock Order Performance: 75%-85%

In our above example when a part is kept in prison because it has not met the "incorrect" Phase-In Parameters, they will not show up on a Suggested Stock Order as they have not "technically" met the Phase-In Parameters.

On the other hand, we could have parts recommended that don't meet the "correct" Phase-In Parameters, but do meet the Manufacturers Vendor Managed Inventory, (VMI) Stocking Guidelines.

In this case, we could be buying parts we "think" ae considered Normal Stock Parts from these VMI Programs, but they are in our DMS as Non-Stock Parts. We may have purchased them for stock, but because they don't meet the DMS Phase-In Parameters, they come in the "house" as Non-Stock.

Overall Off Shelf Fill Rate:

First thing to note on this one is the word "Overall" and does not mean that this is your "First Time Off Shelf Fill Rate". Overall meaning that we sold the part whether today, tomorrow, next week or next month. We could also "fill" the order from someone else's inventory.

Quite simply, it just means that we "filled" the order minus any Lost Sales Reported at Cost. Overall Off Shelf Fill Rate includes all Parts Sales, whether Normal Stocking Parts or Non-Stock Parts which include Special Ordered Parts.

Lastly on Overall Off Shelf Fill Rate, we don't even have to have a Parts Inventory at all to measure Overall Off Shelf Fill Rate. Parts Sales can be filled from anywhere and any inventory, even if not our own.

First Time Off Shelf Fill Rate: 75%-85%

The only way we can measure our Parts Sales on "First Visit" is to determine what parts we tend to sell on first visit which are Normal Stock Parts. This one is easy when we consider the "Overall Impacts" of having the Proper Stocking Status in order to measure First Time Off Shelf Fill Rate. 

How can we accurately know what our First Time Off Shelf Fill Rate is if we don't even know what a Normal Stock Part is? We could be looking really good or really bad depending on the initial Set Ups back in the beginning.

Lost Sales Reporting: 5%-10% of Total Sales at Cost

Whether we are reporting Lost Sales or not, these demands, like a parts sale have to meet the initial Parts Phase-In Parameters. If the Phase-In Parameters are not set up properly, posting Lost Sales won't even matter.

Second, if the initial Phase-In Parameters are set up correctly, posting Lost Sales won't matter if we don't use these demands to run our Suggested Stock Orders. This goes back to my reasoning that it's not really the actual Posting of Lost Sales that's important, it's what we do with the information that's most important.

What's most important than even the definition is the reason and purpose of reporting Lost Sales to begin with. The purpose and reason are to simply track Non-Stock Parts for potential Phase-In, if of course we have the right set ups to begin with on Normal Stock Parts vs. Non-Stock Parts.

Emergency Purchases: 10% or Less

Posting "EP's" is extremely important but is not intended for posting EP's on Non-Stock Parts. Emergency Purchases are simply "Stock Out Purchases for a Customer" and not for chasing parts that are considered Non-Stock. Once again, Proper Stocking Status matters in all these equations.

If we are chasing a Non-Stock Part to begin with, maybe we should post a Lost Sale to ensure that demand is recorded. Even though the demand may be recorded when that part is eventually sold, there is no guaranty that sale will happen. What is guaranteed is the fact that we didn't have the part initially.

Parts Gross Turns: 8 Turns Annually

Technically, Gross Turns effects all Parts Sales as it measures Total Parts Sales at Cost, whether we have the parts on the shelf or not. However, it does give us a measurement of what our inventory value should be based on a 45 Days Supply.

Measuring Parts Gross Turns can help us determine what our "desired" Parts Inventory Level should be. After determining our "desired" Parts Inventory Level should be, we can break that down to what percentage should be Normal Stocking Parts. Here again, if the Stocking Status is accurate.

Parts True Turn: 5 Turns Annually

First and foremost, you can never determine your "true and accurate" Parts True Turn if Stocking Status is inaccurate, plain and simple. For example, if the initial Parts Default Settings are set to Normal Stock Parts instead of Non-Stock Parts, we would look like a hero on Parts True Turns.

On the other hand, if the Parts Phase-In requires too many demands over too many periods, (months), then these parts will never get out of prison. They will remain Non-Stock, even though we sell them as if they were Normal Stock Parts.

In this above scenario, Parts True Turn would be lower than it actually is. Many parts that perhaps should be considered Normal Stock Parts, are actually in the system as Non-Stock Parts thus not calculated in the True Turn Measurement.

They will never figure into the Overall True Turn Rate of Sales of Normal Stock Parts annually divided by the average month's inventory value over the same period. in this case, the dealer will never know how "fluid" their asset is performing.

So amazing how one simple thing as "Parts Stocking Status" can impact so many other Parts Industry Guideline Categories right from the beginning. We should always question what we see to confirm what make sense and what doesn't make sense and fix it.

So, when we are filling out our 20 Group Questionnaires, perhaps you should first understand where these numbers and percentages come from. Second and most important, they should make sense compared to the Industry Guidelines. If they don't, maybe, just maybe, your Stocking Status is not accurate... 

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...

 

July 2026: "What's Your Stock Order Closing Ratio?"

As I was pondering the topic of our July Issue of ACG "Smart Parts", my decision was made rather quickly after I received a question from one of my dealers on a recent Parts Webinar. It was a question that I have never been asked before.

After he asked the question, I was kind of thrown for a loop, but after quickly thinking about it, his question made total sense. His question goes as follows...

"Dave, Is There Any Parts Industry Guideline That Measures Our Stock Order Closing Ratio?"

What he meant was, is there a way to measure the number of parts that are recommended on our Suggested Stock Order versus what we actually accept and submit on that Stock Order?

My first thought was that there could be a measurement, but it would depend on if the Suggested Stock Order makes sense in the first place. If the math is correct including the Parts Phase-In Criteria and the Stocking Criteria based on Average Annual Piece Sales and Total Demands, I guess the DMS would give us proper recommendations.

Unfortunately, and in my experience, most systems aren't even set up correctly in the first place, and that's not my opinion as it's just the math. But given the fact that this is one of my dealers that have the proper set ups with the right math, it's even more of a valid question.

I thought about it even further on how the correct math plays a huge part of getting the right measurements. After all, many other Parts Industry Guidelines also depend on the "right math", Accurate Reporting and Stocking Status, so why not add this one in?

Although, even if the math is correct, there are still many Parts Managers that "over scrutinize" their Stock Order Recommendations for many reasons. Maybe they don't want to stock the part, even if it meets the criteria, or perhaps the part may be too expensive to stock.

Other reasons may include; not accepting the part because they are worried they may get stuck with the part and potentially add to their obsolescence. Another could be that they may have a space issue, and they need to change the recommended quantity.

Whatever the reason, and if we take these Stock Order Recommendations at face value, the correct math does not lie. I do agree though that we should separate and perhaps exclude parts from the Stock Order that we don't want in the first place.

A few of these parts may include engines, transmissions, collision parts and accessories just to name a few. But what if we were to move these initial "unwanted" parts into a Separate Source or Stocking Group, thus only leaving us the parts that we may want to consider on our Recommended Stock Order.

The other factor in all of this if we are supposed to have a "First Time Off Shelf Fill Rate" of 75% - 85% based on Industry Guidelines, then shouldn't our Stock Order Performance, or "Stock Replenishment Rate" be the same thing?

Hmmmm...Seems Like We May Have Something Here!...Stock Order Closing Ratio!

Let's Ponder This Thought & Begin!...

Much like any other Industry Guideline that we may be considering, there has to be a "Universal Measurement" that all Dealers & Manufacturers can follow. It also has to be "DMS Friendly" where we can all access and measure the guideline equally and consistently.

I would probably start out by simply dividing the Stock Order Lines accepted by the Total Lines Recommended. I would not factor in changes in quantities into the equation due to Supply Chain Issues and Seasonal Parts Sales. I think just keeping it simple would give us the best measurement.

I also would not use "dollars spent" versus "dollars recommended" as that may sway these measurements considerably. Keeping it simple and focused on "parts numbers accepted" versus "part numbers recommended" would give us some good info to track.

The other thing that I thought of when this question was asked was that this may also be one of the reasons we are seeing lower "First Time Off Shelf Fill Rates", "Normal Stocking Parts vs Non-Stock Parts" and "Stock Order Performance".

Not accepting the math in the first place based on demand history would only make sense as to why all the other categories are lower as well. After all, the other categories come later after we make these initial decisions on what we accept and don't accept.

I would almost bet that if we start to measure "Stock Order Closing Ratio", we will probably discover that this Closing Ratio is pretty similar to the above-mentioned Parts Categories. 

It would just make sense as this would represent a "trickle down" affect as it all starts by Tracking Demands, (Sales & Lost Sales). Followed by Phasing Parts In that follow the math, then Stocking in the Parts that meet these basic guidelines and math for stock.

It also makes sense that the Industry Guidelines for First Time Fill Rate, Normal Stock Parts vs. Non-Stock Parts and Stock Order Performance is 75% - 85%. They should all follow the same path as they are all inter-related.

The remaining or opposite side of the above percentages would be the 15% - 25% of those parts we Special Order or have to chase as Emergency Purchases. Adding Stock Order Closing Ratio would just fit right into the equation, or "circle".

If you think about it, the Manufacturers that offer their Vendor Managed Inventory Programs, (VMI) are already doing this. They just happen to call it "Compliance", which I prefer to call "Obedience" on the percentage of parts they offer in their program versus the parts we accept and carry on their programs.

Each one of these Manufacturers that offer these programs have a certain percentage rate, which we could also call the "VMI Stock Order Closing Ratio" of parts accepted versus recommended.

Given the fact that many of these Manufacturer VMI Programs only offer 50% - 55% total coverage, or "Breadth" of their Total Inventory, we will never achieve a high "Stock Order Closing Ratio". We have to run our own "Supplemental Stock Orders" on our DMS in order to make up for those parts they don't cover.

Unfortunately, many Parts Managers are not running their own DMS Stock Orders and operating exclusively on their Manufacturers VMI Stock Order Recommendations. Although, it probably wouldn't matter if they did because the basic math in the DMS isn't accurate anyway.

Running a DMS Recommended Stock Order without the right math and set ups would just reveal a lot of "garbage" that wouldn't make sense. Usually, without the right math and set ups, the DMS tends to "over recommend" many parts that do not qualify.

The end results are usually the same where these dealers have too much of what they don't need and not enough of what they do need. Overstocking parts and perhaps adding to obsolescence while many parts we really need get left out.

Even though "Stock Order Closing Ratio" is not a true measurement yet, I do believe in order to maximize this Closing Ratio, we first need to make sure we have the "right" recommendations based on the math as mentioned.

Once that is accomplished, having weekly "Stock Order Meetings" with the Service Manager always helps in making the right decisions. As Parts Managers, we tend to be more cautious and worrisome of what would happen if we don't sell these parts.

Seems like many Parts Managers have their own "Crystal Ball" and try and predict the future of many parts. The Service Manager on the other hand knows what's happening in the present as they already know what parts are tying up lifts in the shop.

Having that extra set of eyes can only help in making the right decisions and increasing the "Stock Order Closing Ratio". It would almost be like "pre-selecting" who we want to sell parts to. Why wouldn't we want to have the right parts for our customers at the right time?

In my opinion, we need to lose that attitude of "I'm not stocking that part because it's too expensive...they can just order it when they need it". This just ends up as Lost Service Productivity and Sales as "Time is a Perishable Inventory".

After all this being said, some may ask the Million-Dollar Question...

"All This May Sound Good, But Will This Only Lead to More Obsolescence?"

The answer to that one is simple as we are not buying parts to hold them and not sell them. We are buying the right parts that have a history of demands that will actually lead to even more Sales and Increased Service Productivity which is the exact opposite.

Obsolescence is going to happen no matter what we do at a rate of at least 5% - 10% each year. The "Smart Parts" Manager already knows that and will always control it, even if some may try and predict the future of parts we "think" may not sell.

Maybe if we start tracking "Stock Order Closing Ratios" we may see more of a pattern developing that we may have not noticed before. Lower "Stock Order Closing Ratio" may be one of the reasons we have a low "First Time Fill Rate".

Maybe it's part of the reason why our Stock Order Performance is low and Inventory Investment on Normal Stocking Parts is also low. It all starts with what we choose to accept based on the "right" math and set ups in the DMS to begin with.

One last thing to keep in mind is that running a Suggested Stock Order on the DMS should be done daily. After all, it's really just a report that that should be reviewed daily and it's not really a Stock Order until we submit it.

"Stock Order Closing Ratio?...Nice Idea!...Perhaps We Should Consider It"!

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...

June 2026: Special Ordered Parts: "Purchased Obsolescence Without a Process?"

As we approach the midway point of 2026, this month's issue of ACG "Smart Parts" will once again focus on the basics. That being said, it's pretty interesting that some of these "basics" we focus on each month are very relevant.

It is not our intent to bring up something new each month, even though we have introduced many new ideas, concepts and approaches in our ACG "Smart Parts" Blogs over the last 14+ years.

More importantly than all that, one of our most common phrases, not only in our ACG "Smart Parts" Training Program, but also in our ACG "Smart Service" Training Program as well is...

"Don't Ask Yourself if You Know It, Instead Ask Yourself How Good You Are at It!"

In other words, we may already know what the process is and have known for years, but how good are we at that process? Especially when it comes down to managing Special Ordered Parts and preventing Parts Obsolescence as a whole.

If You Don't Already Know It, Here's a News Flash!...

"One of the Biggest Contributors to the Dealers Obsolescence is Special Ordered Parts that Never Get Sold!"

In many dealerships today, it shouldn't be a question of "do we have a process?", it should be more of a question of "do we have the right process?" None can be truer with our "Special Order Parts Process".

Special Order Parts can be one of our biggest contributors to Parts Obsolescence and if we don't have the right process, we could be purchasing obsolescence right from the start. Even though we may have a process, in many cases there are few restrictions and most important, there is usually a lack of accountability.

In this issue of ACG "Smart Parts", we will detail our Special Order Parts Process that will help minimize obsolescence while increasing overall parts sales. Keep in mind that these Special Order Parts should be considered as "pre-sold work, or "pre-sold parts sales".

Let's Begin...

As we mentioned, having a process in many of our daily routines is not uncommon. It's more of having the right process that leads to expected results and determines the success of any process.

As we go through and detail our Special Order Parts Process, you may notice that it may contain some process items that are already being followed in most dealerships today. It's more of what we aren't doing in our current process that we should be focusing on.

Number One: Special Order Parts Authorization

Much like most problems that lead to undesired results in any process, it all starts in the beginning, and initiating a Parts Special Order Process is no different. We should be first looking at just who is authorized to order these Special Order Parts in the first place.

In many dealerships today, just about anyone can Special Order a part without any accountability or incur any consequences. In all actuality, whoever authorizes the initial Special Order should be held accountable for the sale of that part.

Authorized personnel should only include Parts Personnel, Department Managers, Service Advisors and of course, the customer. Technicians do not order parts as they are not usually held accountable. They can tell us what a vehicle requires, but they are not authorized to order Special Order Part(s).

All Special Order Parts need to be authorized and signed for to start the accountability trail. If these parts are not eventually installed, or sold, then the authorized person or department generating the Special Order should be held accountable to any return fees.

The authorizing party should also be signing off on when they are notified when the Special Order Part(s) have arrived as well. Often times, the Parts Department just lays a Special Order Part receipt on their desk and goes unnoticed and lost in a paper shuffle.

This is crucial because in my opinion, if the Special Order Part does not get installed or sold, then it should be returned after 30 days, no matter the cost. Otherwise, it will just be added to the inventory and future parts obsolescence.

Number Two: Parts Pre-Payments, Restrictions

This part of the process is usually common in most dealerships today when applicable. Problem with this one is that we can't ask for a deposit or pre-payment on Warranty Parts or Internals. These are also the parts that we are stuck with if not installed or sold, once again adding to Parts Obsolescence.

Of course, acquiring deposits and pre-payments is extremely important and involves the Accounting Department in processing these payments up front. It also requires the proper billing procedures in order to relieve these payments on RO's and Counter Tickets.

Special Order Parts "restrictions" on the other hand are not often followed enough in many dealerships. Proper signage and wording on Repair Orders and Counter Tickets have to include these restrictions, exclusions or added fees.

Restrictions and conditions should include; No Returns on Electrical Items, No Special Order Parts Returns after (30) Days, Packaging Restrictions, and Return Fees May Apply just to name a few.

Keep in mind that these Return Fees should also apply to other departments, even if these fees are charged internally to the authorized department as an expense. Even though there are really no "monies" realized, the expense should be applied, and the part should be returned to the manufacturer or scrapped.

Back when I was a Parts Manager, and when Special Order Parts reached (30) Days without being sold, the authorizing person or department was given final notification. I would then give them a two week "grace period" to get those parts sold.

Once the (45) days have elapsed, these Special Order Parts were either sent back to the manufacturer or scrapped. The return fees or scrapping fees would then be charged to the authorizing department as there has to be accountability with consequences.

I have learned over the years that if we followed these guidelines and stuck to them; the problem seemed to go away. Most importantly, the dealer had to support this part of the process with no exceptions.

Number Three: Pre-Billed Special Order Parts

In my opinion and in the past, I would never Special Order a part for Service unless I had one of two things, which would be an RO or a Future Appointment set for the customer. In most Dealer Management Systems, a future appointment can be created, attaching the Special Order Part to a customer.

Prebilling a Special Order part to an RO or a Future Appointment is essentially the same thing and "allocates" the Special Order Part to either the RO or the Future Appointment with a Lead Time of at least 3-5 days. If a Special Ordered Part is Back Ordered, Service is notified and the Future Appointment is "modified", not deleted to an alternate Future Appointment Date.

Billing a Special Ordered Part to a Future Appointment would also allow the Service Department to remove parts from an RO, which we all hate in Parts. If a part is removed from an RO for any reason, the Special Order Part should then be billed to a Future Appointment.

It's also much easier for the Service Advisors to "pre-schedule" these appointments as opposed to waiting for parts to arrive and fit these customers into their schedules. Communication is key though as we don't want customers coming in for their appointments and the part hasn't arrived for whatever reason.

The Parts & Service Departments also have to do their prework before the customer arrives to ensure the right parts were ordered and received. This "prework" should be in place no matter if the customer had a Future Appointment or not and should apply to all Special Order Parts.

Believe it or not, this happens often as Special Order Parts are ordered wrong for whatever reason or person. Another "Purchased Obsolescence" Scenario happens when the Tech Special Orders additional parts "just in case" they may need it, or the diagnosis is not clear on the needed parts.

Number Four: Special Order Parts Notification

If there was one area where the ball gets dropped in this whole process is this one as everyone seems to point the finger at someone else. Every DMS out there has a "Universal Special Order Communication System". There should not be calls going back and forth between Parts and Service to see if Special Order Parts have arrived.

Maybe the Counter Person just dropped the slip on the Service Advisors desk without personally notifying the advisor, or the Service Advisor was notified and didn't call the customer. Whatever the "excuse", this one seems to always lead to "Process Failure".

First of all, if we had set a Future Appointment in the first place and the Parts Department made sure the part was there for that Future Appointment and we verified we had the right part beforehand, things would flow smoothly.

I realize that if all that happens correctly, then things would flow smoothly, but unfortunately, when the process fails just one time, it gets dropped completely. Instead of finding out where the slipup was and fixing it, we tend drop this "good practice" process completely.

Number Five: Special Order Parts Bin Sequence

Lastly, one of the areas that most often gets overlooked is where we "bin" these Special Order Parts in the first place. In many, if not most dealerships, Special Order Parts are kept out back near the shipping & receiving area mostly for convenience. Out of sight and out of mind when they should be prioritized for obvious reasons.

In my opinion, Special Order Parts should be closer to the front counter in order to stay on top of them and reduce the chances of being stuck with them. After all, we already know that these parts could eventually be added to our obsolescence.

In addition, we should also "bin" them differently as most Special Order Bins are set up in alphabetical order sequence by the first letter of the customers' last name. This has been pretty much how we have binned Special Order Parts for years.

Quite a few years ago I happened to visit a dealer that literally had no issues with Special Order Parts Aged over (30) Days, which is the industry guideline. When I asked to see his Special Order Bins, I was confused as I didn't see these Special Order Bins labelled with the letters A - Z for the first letter of the customers last name.

Instead, what I observed were Special Order Bins with the Service Advisor's Names at the top and four shelves below. Each shelf had fluorescent tape to the left starting with green on the first shelf, yellow for the second, blue for the third and the fourth shelf labeled with red fluorescent tape.

Each shelf indicating how long that the Special Ordered Part(s) had been received and on the shelf waiting to be installed and sold. This "visual" was amazing to me as it really made it easy to manage these Special Ordered Parts.

Each day, one of the Parts Staff would update and move these Special Ordered Parts to the appropriate shelf based on the receipt date. The Service Manager also insisted that his Service Advisors walk these shelfs to make sure they did not end up on the bottom shelf, which was week four.

This "visual" Special Order Management idea was so simple to me and so practical in order to keep these Special Order Parts cycled through every (30) days. Other than the exceptions of back ordered parts, restricted parts and rescheduling customers became much easier to manage.

Everyone involved has to have a sense of urgency and accountability to this whole process. Those days of just saying..."The customer never showed up so just put it back in inventory and we will sell it to someone else"...are long gone.

Bottom line is that Special Ordered Parts that do not get installed or sold are just adding to the dealer's obsolescence and acquisition and holding costs. Most importantly, Special Ordered Parts could be referred to as "presold work" and we should consider them as such.

We all work very hard to increase Parts & Service Sales each and every day and these parts are just sitting there waiting to be installed and sold. Keep in mind that simply ordering Special Order Parts doesn't complete the task as it's just beginning.

f 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...

May 2026: The Net Effects of "Choosing Not" to Stock the Right Parts

After writing these Monthly Blogs for over 14 years, I never thought I would get so excited and anxious to write this one. Writing about something that hits the "core" of what I believe to be our primary reason for being a Parts Manager in the first place.

That reason is to service and provide the "right" part to our customers at a high level on the first visit to our parts counters and be profitable. We not only have to provide these parts, (according to Industry Guidelines) 75% - 85% on first visit, we also must protect the dealer's investment.

Protecting the dealer's investment meaning we must minimize parts from going obsolete. Being a Parts Manager is not easy as we have to have the right parts and keep the inventory "clean".

I will admit that this "two-way street" usually leans to one or the other in many dealerships today. Either we have a "clean" inventory with a Low First Time Fill Rate, or we may have a High First Time Fill Rate but have issues with Obsolescence.

The truth and the fact of the matter is that we can have both High First Time Fill Rates and Controlled Obsolescence. The real question is which one of these three mentioned do we want to be?

In this issue of ACG "Smart Parts", we will reveal the secret of many Parts Managers that "Choose Not" to stock the right parts just to keep their inventory clean from obsolescence. Even if it comes at the expense of technicians, dealers and ultimately, the customer.

The parts that I'm referring to that are purposely not stocked, even if they meet Stocking Guidelines are as follows. Parts such as bolts, washers, gaskets, turbos, some suspension and driveline parts, brake repair parts, emission parts, etc.

I am not referring to engines, transmissions, collision parts, recall parts and perhaps restricted parts for obvious reasons. Even though I do have many dealers that do stock some of these above parts in higher volume stores because they have met the Criteria.

Keep in mind that these Parts Managers that "Choose Not" to stock the right parts, other than fast moving parts don't have to actually face the customer. They are just sitting in the background essentially controlling the dealer's money and other people's lives.

In some respects, I hate to be blunt, but on the other hand I will be blunt as my passion has always been to be the best Parts Manager I can be. That doesn't mean that our primary reason and goal as Parts Manager is to keep our inventory clean.

It's time to expose this "Parts Management Style", or preference by listing out ALL the effects of what this style or primary goal can cause. Keep in mind that I work with many Parts Managers that are doing it right, but unfortunately, I also know and have worked with many that purposely "Choose Not" to stock the right parts.

So "Smart Parts" Managers!...Let's Put All the Cards on the Table Face Up and Reveal the Effects of Purposely Not Stocking the Right Parts!

First and foremost, let's start by looking at the "mindset", or profile of many Parts Managers out there today. Parts Managers typically have personality traits that include critical thinking, are worrisome, not trusting, and always wondering what may happen.

One of the Parts Managers biggest worries is the dealer and what might happen if we end up with too much obsolescence. After all, in our role as Parts Managers, we are supposed to protect the dealer's investment and that's what they expect.

This is not a bad thing for sure, but I guess the real question or concern is what lengths they are willing to go to protect from obsolescence amounts, even at the expense of others. Even if it affects the bottom line, they will still put obsolescence protection first.

Let's Get Started on What "Choosing Not" to Stock the Right Parts Can Cause...

Service Scheduling Issues:

Service Departments that have an "Obsolescence First" minded Parts Manager seem to get used to the fact that Maintenance Parts are great and are readily available. When it comes down to repair parts though, it's not uncommon that we diagnose the problem today and repair the next day and beyond.

This obviously causes a scheduling nightmare because even if we diagnose the problem today, the repairs are put off later that day or another day. We just seem to get used to it and schedule "around" the Parts Managers stocking preferences.

If you think about this aspect alone and the Lost Productivity, and with time being a perishable inventory, this "down time" is costing the dealer tons of money. The Parts Manager may feel that they will eventually get that sale and that's all that matters to them.

What they may not realize is that they could get two jobs done in two days instead of one job in those two days, which would double the amount of Parts & Labor Sales in that same time frame of two days.

The lost time waiting for a part that we should have on the shelf cannot be replaced, whether later that day or the next day. Customers are forced to wait longer to get their vehicle back, and/or we have to put them into a Rental or Loaner Vehicle.

Even worse, waiting to complete the repairs because the Parts Manager "chooses" not to stock the part and "order as needed" takes up more appointment slots. Diagnosing today, repair tomorrow and take up another appointment slot.

Lastly on this effect, technicians now must have two lifts as vehicles are tied up waiting for critical repair parts we should have had in the first place. 

Thus, reducing efficiency and stall utilization with one stall waiting for parts and the other to complete the repairs on the parts ordered yesterday and received today.

Lack of Lost Sales Reporting:

This effect is pretty interesting as these Parts Managers that put Inventory Protection first also tend to not want to report Lost Sales on certain parts. They don't even want to stock them in the first place because they don't want to be stuck with them, potentially going into the obsolescence category.

This also leads to a major problem in Lost Sales Reporting to begin with as more and more restrictions are put on what to report as Lost Sales. The Exception becomes the Rule, and the Counter Staff doesn't even know what a Lost Sale is anymore.

Even if the Lost Sale leads to meeting Phase-In Stocking Guidelines, the Parts Manager will not accept it anyway. Parts are only going to be stocked if it is a fast-moving part such as Filters, Brake Pads & Rotors, Wipers, Fluids, etc.

Any Parts Manager can look like a hero and keep the inventory "clean" and essentially free from obsolescence if all we are going to have on the shelf are fast-moving parts. It takes a "skilled" Parts Manager to have ALL the right parts and keep the inventory clean.

If we are going to have this mindset, what's the point of even posting any Lost Sales? There is a reason every DMS out there has a Lost Sales Posting Function and that is to track non-stock demands of ALL parts for potential Phase-In.

Technician & Service Advisor Mindset:

This effect is crucial and shameful at the same time as Technicians and Service Advisors can develop a "mindset" working with this type of Parts Manager. They will actually NOT recommend additional work, or "upsells" because they know they won't have the part anyways, so why bother.

This is unbelievable but it happens and the sad part is that not only is the dealer losing opportunities, but the customer may also be leaving the dealership with needed repairs. The safety of that family's vehicle now falls on the dealer.

If there was one single thing that these Parts Managers with this mindset do not realize is that their decision to protect them from obsolescence first can indirectly affect the eventual safety of the customer's vehicle.

Even if the Technicians and Service Advisors are on the front line, their "mindset" is shifted. They feel there is no point in making recommendations because they won't have the part anyways, so why bother and potentially affect their paychecks.

They end up going with and recommending quantity versus quality. By this I mean that they will only recommend upsells that include faster moving parts such as flushes, wiper blades, tires, alignments, etc.

Repair recommendations such as oil leaks, idler pulleys, weak suspension components, belts & hoses, etc. may be noticed, but not documented. Or perhaps they may be documented but not presented to the customer. 

Our jobs, duties & responsibilities are to inform our customers of the condition of their vehicle, whether they choose to have them done or not. In my opinion, first and foremost, we must have a genuine concern for our customers.

The liabilities and care for our customers alone should be reason enough to want to do what's right for our customers. On top of that, our sales and profits will also increase as it's a "win-win" for everyone.

But due to human nature, and the Parts Managers preferences, we could be responsible and liable for our choices, in-actions and preferences. The service we are supposed to provide our customers should not be determined by this potential trickle-down effect.

Lack of Stock Order Utilization:

This is another effect that goes unnoticed as this Parts Manager Mindset tends to not run their Stock Orders or Supplemental Stock Orders nearly enough. After all, if we are only going to carry the fast-moving parts, we can do that calculation ourselves.

Plus, the Stock Order recommendations may be more than we want as we want to keep those purchases down to make my Gross & True Turns look better. After all, why should we carry 3 cases of that oil filter when I can get by with 2 cases.

And why should I carry 3 sets of those brake pads when I can get by with 2? We can always chase a set if we run out in the Aftermarket or another local dealer. These scenarios are real and happen every day in many dealerships. 

Running a Suggested Stock Order is just that, it's just a report on what the system recommends, (with the right math of course) and it is not a Stock Order until we submit it. It is not uncommon for these Parts Managers to pretty much run their own Stock Orders in their head because they feel they have better control.

In addition to all the above, many Parts Manager only utilize their Manufacturers' Vendor Managed Inventory, (VMI) for Stock Order Replenishment. The DMS Stock Order is never utilized for Supplemental Stock Orders for those parts that are not qualified in their Programs.

The sad thing is that most of these Manufacturer VMI Programs only tend to cover approximately 50% of the Manufacturers' total "breadth" of Inventory. They cover primarily the fast-moving parts, and many "captive" parts are left out of the program.

Many vehicles in Service are left tied up on the lifts waiting for the "right parts" to be chased or Special Ordered later in the day, the next day, or even longer. Once again, "Choosing Not" to stock the right parts impacts Overall Shop Productivity.

The "Unseen" Effect:

If you were to ask any owner that has this type of Parts Manager, they would most likely say that they are doing a great job because their inventory is so clean and they are profitable. It's the "Unseen Effect" that they are missing even though they are still profitable.

You won't see any Missed Opportunities on any Financial or any Parts Monthly Analysis Report. You won't see the Service MPI's that do not have ALL the recommendations or items that require attention if they are not there or presented to the customer.

To reveal this one, simply run a report of vehicles that have been in your shop over 100,000 miles and leaving with just an oil change and perhaps a tire rotation. The "unseen" would then be revealed as these vehicles are leaving our shops with needed repairs and/or maintenance.

These "Unseen Effects" can add up to tons of Missed Opportunities, Lost Sales & Gross Profits, Lower Service Productivity and potentially, Lost Customers. If more and more dealers would look at these Missed Opportunities, they may just find that what looks good on paper is not the reality overall.

The Only Benefits: Low Obsolescence, Clean Inventory & Higher Turn Rates

These benefits are obviously important, but if we are living and operating our Parts Departments on these three priorities, we are missing our purpose as Parts Managers. If you think about it, the Parts Manager is in control of the overall outcome.

All the while, they operate in the background mostly without any customer interaction other than Counter Retail & Wholesale Operations. Just to make things look better to the dealer on paper, which may indicate that the Parts Manager is doing a great job.

In the case of "Choosing Not" stocking the right parts has far more negative outcomes compared to the few benefits. I'm not saying that we let obsolescence go rampant by stocking more of the right parts as we should be doing both.

Many dealers that I'm associated with are doing just that by keeping obsolescence under control while having a very High First Time Fill Rate. These are the real Parts Managers that are getting the job done in all aspects and are what I call the "Real Smart Parts Managers".

We could have the best Parts Set Ups & Controls with the right math on Parts Phase-In, Parts Phase-Out and Stocking Levels, but if we don't have the right "mindset", it won't matter. The Parts Manager has to use the information and act appropriately to what the math is telling us.

To me, this type of Parts Management Style is "Old School" and should be addressed. If you want to know the truth, just speak with your Technicians & Service Advisors and they will agree that most vehicles are tied up because we don't have the right part(s).

Keep in mind that I do realize that there are a lot of legitimate reasons why they may be tied up for a part due to limited availability, restrictions, etc. Those are the normal, acceptable reasons, but the Parts Managers should still be doing their best to find these parts and not letting them sit on a backorder status.

Our real success in our Fixed Operations is determined on Quality Service and Parts and how well we cycle vehicles through our dealerships with the right processes. Quite simply, none of our customers want their vehicles tied up longer than they should be, they will simply go elsewhere.

If you are one of these Parts Managers, your secret is now out, and you may just want to reconsider where your priorities lie. My advice to dealers is to not look at your Parts Department on face value alone on the Financial and your Parts Monthly Reports.

The "Unseen" Effects of "Choosing Not" to stock the Right Parts will just end up as Missed Opportunities and unhappy Technicians, Service Advisors and most important, Unhappy Customers that may never return.

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...

April 2026: Normal Stock vs. Non-Stock Parts: "What's Our Real Number?"

Our April Issue of ACG "Smart Parts" will be focused on a topic that really impacts one of our most important Industry Guidelines. To me, other than Parts Gross Profit, Parts Stocking Status is perhaps the most important as it effects so many other important Parts Industry Guidelines.

Unfortunately, it's also one of the most misunderstood and inaccurate number, or "percentage" in many Dealer Management Systems, (DMS) today. Each system has basic Set Ups like Phase-In Criteria that should give us an idea what a "Normal Stocking Part", or "Active Part" should be versus Non-Stock, or "In-Active Parts.

Sounds simple up front as we set our own Phase-In Criteria that if met, and we choose to accept a part for phase-in, it "should" consider that part a Normal Stocking, or Active Part. Unfortunately, especially in today's world, this is not so simple anymore.

The ramifications of having an inaccurate percentage listed in our DMS could lead to a trickle-down effect of inaccuracies in other Industry Guideline areas as well. If our percentage of Normal Stocking Parts is inaccurate, then our First Time Off Shelf Fill Rate and Parts True Turns will also be inaccurate.

The lack of Lost Sales Reporting can also impact our Stocking Status as many demands go unrecorded that may drive more parts into that Normal Stocking or Active Status after potential Phase-In. Parts Phase-In is determined initially by Total Demands which are Parts Sales and Lost Sales.

When I mentioned above "in today's world", I was referring to parts that we purchase or "accept" today as New Proposals in the Manufacturers'' Vendor Managed Inventory, (VMI) Programs. This one impact alone will give every dealer in these programs inaccurate Stocking Status Percentages, which I will prove moving forward.

The Manufacturers' VMI Programs are just one of our "5 Factors" that impact our Stocking Status Percentages from either Stock, (Active), or Non-Stock, (In-Active). All "5 Factors" do all have one thing in common as they are all driven by initial DMS Set Ups.

You don't have to take my word for it; you can make that judgement for yourself when we break it all down. I'm quite sure that many of these "5 Factors" that we break down are currently impacting your Stocking Status Percentages.

Once again "Smart Parts" Readers! It's time to begin...

Back in the day, it was quite simple to distinguish what parts were Normal Stocking Parts versus those parts we considered as Non-Stock Parts. First of all, and in some systems, we have now added this new Stocking Status term of "Active" or "In-Active".

That in itself has added more confusion in Stocking Status Terms as believe it or not, we could have a Normal Stocking Part that is In-Active. On the other hand, we could have an Active Part that is a Non-Stock Part.

After all, we could have a part that has "Phased-In" based on our criteria as a Normal Stocking Part. Then, this part hits the Phase-Out Cycle point, but has not sold. Thus, we could have a part that's been on our shelf for a couple years as a Normal Stocking Part, but it's now "In-Active"!....are you confused yet?

Let's start with our "5 Factors that impact our Parts Stocking Status right from the beginning...

Number One: Parts Phase-In

Back in the day, we would start out by selecting our own Parts Phase-In Criteria, pretty much like we do today. Let's say that want to "potentially" Phase-In a part as a Normal Stock if the part had at least one demand, (Sale or Lost Sale) in 3 Separate Periods, (or Months) over the course of 7 Months.

Once we accept a part that has met the criteria, it would flip over to a Normal Stocking Part Status. Any part that has not met the criteria would remain in the Non-Stock "Default" Status, which is pretty simple math.

Once a part has run its course and starts to slow down, we would perhaps set our Parts Phase-Out Period, (or Month) at least one Period, (or Month) after the Phase-In Months Cycle. If our Phase-In Cycle covers 7 Months as we mentioned above, then the Parts Phase-Out Cycle has to be at least one day, or Month after the initial 7 Month Phase-In Cycle.

Unfortunately, and in many dealerships today, the Parts Phase-Out Criteria is set incorrectly. Many have their Parts Phase-Out Period or Month set before the Phase-In Cycle has completed.

An example would be to have the Parts Phase-Out begin at 6 Months when the Phase-In Period covers 7 Months. The end result is that parts will not Phase-Out properly and could be reordered again and be back on the shelf as "Purchased Obsolescence".

Number Two: Dealer Management Systems, (DMS)

Here's where things could potentially go downhill with inaccurate Parts Stocking Status depending on which DMS is used. Some systems still use the simple version of Normal Stocking Parts versus Non-Stock Parts as Stocking Status Criteria.

Now, we have many more systems out there that have thrown in "Active" or "In-Active" in their terminology for Normal Stocking Parts versus Non-Stock Parts with some using both terminologies. Stock, Non-Stock, Active and In-Active Parts are all suddenly in the mix and the confusion starts.

In my mind, an "Active" Part is a part that "sells" in the "Active" Cycle of 0 - 12 Months and that could even include Special Orders. An "In-Active" Part is a part that has not sold over 12 Months, based on Industry Guidelines.

Once a part hits the "correct" Phase-Out Period, it could be stated as "In-Active" but still be considered a Normal Stocking Part as it met Phase-In Criteria way back in the beginning. Depending on the DMS, Stocking Status can be affected or not affected and give false percentages in what is truly a Normal Stocking Part and a Non-Stock Part.

To me, and to keep it simple, a Normal Stocking Parts has to meet Phase-In Criteria. Once the part Phases-Out and goes beyond 12 Months - No Sales, it is a Non-Stock Part. Even in the case of GM which requires holding their RIM Parts for 15 Months. 

They still need to be considered Non-Stock, or In-Active because they no longer meet Normal Stocking, or Active Status Guidelines. Problem is that some systems will not allow changing Stocking Status and make it "stick" as they will revert back to the previous Stocking Status.

Number Three: Manufacturers' Vendor Managed Inventory, (VMI) Programs

This one is the biggest contributor in inaccurate Stocking Status Percentages by far. If we accept a New Proposal of a part that the Manufacturer recommends based on Program Guidelines, we could be receipting and stocking a Non-Stock Part in our system right up front.

Quite simply and by the math, if we accept a part as a New Proposal, and if that part has not met our own Phase-In Criteria, it will be a Non-Stock Part in our DMS. Some systems allow the Parts Manager to do what's called a "Dealer Phase-In", (DP), but some systems do not allow the Parts Manager to force that part to Phase-In.

Dealertrack for example has a function to Change Status from "In-Active" to "Active", but the next day, it reverts back to "In-Active" Status. Even though we are accepting the Manufacturers' New Proposal as a Normal Stocking Part, it's considered a Non-Stock, or In-Active Part in the DMS.

As you can see, this will throw the percentages off between Normal Stocking Parts versus Non-Stock Parts. Especially when we have to meet basic Compliance Levels on these programs, many of these parts are considered Non-Stock, or "In-Active" until they potentially meet the DMS Phase-In Criteria.

If our DMS does allow us to manually "Dealer Phase-In" a part, the Parts Manager has to be aware and change these parts when they accept these New Proposals. Constant maintenance and awareness are key to getting the right Stocking Status Percentages.

Perhaps most important in any DMS is to have the right Phase-In Criteria to begin with. I've been into dealerships where the DMS has the wrong Phase-In Criteria that requires way too many demands to even have a chance to ever Phase-In.

Each DMS has their own particular "language" in setting Phase-In Criteria just by how it's worded. We may want parts to Phase-In with at Least 1 Demand in 3 Separate Periods, (or Months) over 7 Months, but if we don't read the wording correctly, it may end up as at Least 3 Demands in 3 Separate Periods, (or Months) over 7 Months.

The end result is that a part would have to have a total of 9 or more total demands in order to even be considered a Normal Stocking Part. A part may never even have a chance to become part of the Normal Stocking Part Family.

This could also affect VMI Parts from the Manufacturer as when they get accepted as a New Proposal, they would still have to meet the Phase-In Criteria in the DMS. This section could also be included in our Number One and our Number Two, but as you can see, these overall effects can be felt all around and impact Stocking Status Percentages.

Number Four: Sales Activity Over 12 Months

More confusion on its way on this one!...

Many Parts Managers and Dealers confuse Parts Sales Activity with Parts Obsolescence, which will be our Number 5 after this one. The key on this one is that we are referring to "Sales Activity" and not "No Sales" as we would consider as Obsolescence.

If a part sells that has been on the shelf that "sells" over 12 Months, that would be "Sales Activity" as the part was on the shelf for over 12 Months and now, we have a sale. This is important as this may impact whether a part is "Active" or "In-Active" depending on the DMS.

We could also have a part that is in the DMS as a Normal Stocking Part and has not sold in over 2 years. Stocking Status of Normal Stocking or Non-Stock should not be confused with overall "Sales Activity", even though it's tough not to be confused on this one.

Keep in mind that even though we may be confused, the DMS is not when it comes down to Stocking Status. Reason being that the DMS has to have input, such as criteria right up front to determine Stocking Status.

It's up to us as Parts Managers to determine what criteria we want initially that will give us the Proper Stocking Status. Input will determine the output and most important, accurate information that affects so many areas in meeting Industry Guidelines.

Number Five: Parts Obsolescence

Our Number "5 Factor" on Parts Stocking Status also plays a huge role in determining what parts we have that may be considered Normal Stocking Parts, or Active Parts versus Non-Stock Parts, or In-Active Parts.

Let's start out by defining what is Obsolescence by referring to a few facts that have been determined by Industry Analysts for years. If a part has not sold in 12 months, there is a 98% chance of No Future Sales.

On top of that, the IRS Straight Line Accounting Method says that any inventory, not just automotive parts are only worth half their value with No Sales over 12 months. This is why it has been pretty much a standard that Obsolescence Vendors start their offers at .50 cents or less on the dollar.

To keep it simple and with the above stated information, in my opinion, any part that does not sell over 12 Months is Obsolescence. Even though GM for example requires RIM Return Qualifications at 15 Months.

Whether we choose the 12 Months - No Sales timeline, or if we go with 18 Months - No Sales, the Stocking Status needs to be Non-Stock, In-Active, or whatever they call them in our DMS. Whether the DMS changes the Stocking Status or not, we have to find our own way of keeping up with the proper Stocking Status.

If we don't, we will never truly know what parts we have on our shelves are Normal Stocking Parts or Non-Stock Parts. Whether they are Active or not, the bottom line is that Obsolete Parts do not sell as we all know. 

Our true Stocking Status Percentages of Normal Stocking, or Active versus Non-Stock, or In-Active Parts need to be as close as possible to being accurate. Otherwise, we cannot expect our First Time Fill Rates and Parts True Turns to be accurate as well.

Not as simple as it was years ago, but the purpose is still the same and what has not changed is the Initial Set Ups and Criteria have to be accurate first. We all know that phrase that still holds true today..."Garbage In, Garbage Out!"

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...