Parts Call Centers: "The Next Wave In Parts"

Keeping up with our ever changing industry can be quite tasking at times and I have often overlooked some of the most obvious changes going on right in front of my eyes.

 The topic for this month's issue of "Smart Parts" came to me during a casual conversation with a very good friend of mine who works for a dealership "Parts Call Center".

I would also like to add that Rick is one of the best at his craft and is always at the top in sales and gross numbers each and every month in this dealership's "Parts Call Center". Overall parts knowledge and years of experience is irreplaceable.

As he was updating me with his success stories and sales achievements, it dawned on me that I did see this coming a few years back when I developed our ACG Parts "Call Distribution Center", (C.D.C.) Program.

I also remembered how extensive and detailed the program had to be in order to be successful in any market in the U.S. and Canada.

In my opinion, implementing a "Parts Call Center" requires so much more in the way of logistics than your typical Sales or Service Business Development Centers, (B.D.C.) in many automotive dealerships today.

One of the biggest differences is the "skill sets" that are required in "Parts Call Center". They involve more than just phone skills, script training and a list of customers to stay in contact with.

Having the right parts personnel with the right parts "know how" in providing the right parts is crucial. In some cases, there is no substitute for experience and this is one of those cases.

So...what are the guidelines to implementing a successful "Parts Call Center?"

First of all, before we get to the guidelines and implementation part...let's look at some of the benefits to having a "Parts Call Center" in the first place. I believe there are a few HUGE benefits right out of the gate. Even though there are many to follow as we will review, here are the big three...

When I was developing our ACG "Smart Parts" Call Distribution Center Program, (C.D.C.) the math revealed that the parts staffing metrics in the "Smart Parts" C.D.C. Program resulted in a minimum personnel cost reduction of 25%.

Most parts sales are realized from incoming phone calls and the centralized location lessons the need for increased parts staff versus individual dealer parts locations.

In the dealership, technicians also benefit as their "back counter" parts staff is dedicated to them 100% and not answering phone calls. In dealership overall staffing is reduced because the only needs left in the store are front and back counter staff. 

Second, overall parts sales and gross numbers rose as well due to the higher call efficiency from experienced parts personnel with fewer chances of "looking up the wrong parts". Less time on the phone results in higher efficiency, higher customer satisfaction and you guessed it....increased parts sales and gross! 

The third huge benefit is the stocking or "warehousing" of the parts shipped from the "Parts Call Center". Wholesale and retail parts are shipped to individual dealer locations from the call and distribution center as orders are placed.

Much like national aftermarket parts vendors do now to replenish their individual satellite location inventories.

As for the Parts Manager, all duties and responsibilities are shifted to the "Parts Call Center" including all Inventory Management Systems, (I.M.S.) functions such as;

• Parts Ordering
• Parts Receipting Updates From Individual Locations
• Parts Pricing
• Source Ranking
• Phase-In/Phase-Out Parameters
• Days Supply
• General Shipping & Receiving
• Account Management

Implementing a "Parts Call Center" does require a set of guidelines in order to be successful. These basic guidelines cannot be overlooked in the initial implementation and depending on individual logistics, more guidelines may need to be added. Here are some of the guidelines;

• All "Parts Call Center" expenses are shared with all participating stores based on a percentage of overall annual parts sales averages. Percentage of shared expenses are updated annually and adjusted as required.
• All parts incoming calls are directed to the "Parts Call Center". All orders placed will be distributed through the shared dealer warehouse or individual dealership for delivery. 
• All "in-dealership" repair order parts and over the counter retail sales will resume as usual with less parts staff. Individual store parts inventory replenishment will be facilitated from the "Parts Call Center" if central warehouse is used.
• All dealer groups' parts inventories will be linked in the group's computerized "shared network" for optimum "off shelf fill rates".
• Obsolete inventories will be tracked by individual store and shared with all stores within the network. Inventory re-distribution on obsolete items to other stores in the network is encouraged if sales of obsolete inventory may become active again in another location.   

These are just a few guidelines that need to be considered or implemented when considering a "Parts Call Center" implementation. There are definitely many "positives" for dealer groups to contemplate a "Parts Call Center".

 Multiple stores and locations, individual dealers logistics, franchises and proximity all have to be taken into account for proper planning and implementation.

I believe that we will be seeing more and more "Parts Call Centers" as many dealers expand their operations and franchises. In addition to that, I believe Collision Centers, Insurance Companies and Manufacturers will continue to partner up and drive the need for centralized or "satellite" parts warehouses.

The future is already here as more and more of these "Parts Call Centers" are popping up right before our eyes! Even single line or "stand alone" dealers can benefit from implementing a "Parts Call Center". Adding a "Parts Call Center" to an existing dealership B.D.C. is not a bad idea!

Just watch, listen and count the number of phone calls coming into your parts department. Watch and see how long your technicians are standing and waiting to get their parts. Two or three technicians waiting for a parts person for 10-15 minutes can add up to a lots of "Lost Productivity"!

Time is a perishable inventory that we can never get back! It's time to get "out of the box" instead of just "thinking outside the box"......and we can help! 

Dave Piecuch is the Vice President of Automotive Consultants Group Inc. and is the Head Coach for Smart PartsTM. The only "Results Based" High Return Training, Coaching, and Consulting company in the world!  Dave can be reached at Cell 786-521-1720 or E-mail at dave@smartservicetraining.com Vist our Website at www.smartpartstraining.com

February 2015: "Don't Wait...Fix It Now!"

Over the past two months we have researched a lot of data from NADA and Automotive News to give us an idea on how past performance can impact our future expectations. Our year end review revealed that our industry has taken great strives forward or perhaps better defined as a "significant comeback".

This past information from 2014 and beyond gave us a lot of information and trends that point to a welcomed upward trend in our industry. In many cases, forecasts for many dealers are much stronger than they have been for several years.

The present is what we live in and with all this information at our disposal, we should be able to adapt to changes in the marketplace much quicker than ever before. Actually, in most cases, if current trends don't indicate positive results, we have to move forward with changes or modifications.

One example that I can give to most "Smart Parts" Readers is the current life span of a part. Back before the millennium, it wasn't unusual for the life span of a given part could be several years. Today, it's also not unusual for the life span of a part to be less than one year. So how does this example or analogy apply to the theme of this blog?

Quite simply, we are one month into 2015 and for Parts Managers, that's one month of data that we have access to with our Dealer Management System, (D.M.S.) Monthly Management Reports as well as one month of Dealer Financials.

Managing a parts inventory is ongoing and requires constant maintenance. Phase-In/Phase-Out Criteria, Days Supply Set Ups, Lost Sales Reporting, Stocking Criteria, etc. need to be reviewed at least once a month when the Monthly Analysis Report becomes available on the first of each month. 

Even though new & used vehicle sales as well as parts and service sales can fluctuate from month to month with several variables such as selling days, weather, holidays, etc., the parts inventory's basic Set Ups & Controls need to be managed monthly. 

Upon review of these reports, modifications need to be made immediately based on results. A good example would be Lost Sales Reporting. If Lost Sales Reporting in January 2015 were less than 10% of total cost of sales?..."Don't Wait...Fix It Now!" A process should be in place to meet NADA Guidelines. It won't fix itself and we can't just hope it will get better.

Another example would be Customer Pay Parts Gross Retention...if the retention percentage is less than 40%?..."Don't Wait...Fix It Now!"

Adjustments need to be made in the parts escalation matrix to achieve expected levels. This is factual information and adjustments need to be made immediately. Don't wait and hope for it to fix itself.

There are many other Set Ups & Controls that provide crucial information such as Obsolescence Control, Days Supply, Overall Purchases including Promo Items, etc. All of which do not require a "wait and see" attitude.

One last area that needs direct attention each month is Expense Management. Personnel is our biggest expense and also requires constant review. Especially when, in many dealerships the survival of the Parts Department depends on other departments to create most of the gross in the first place. 

Trends and past results are great to look back on to compare performance. Industry forecasts are also great to give us targets and objectives, but neither will lead to predictable results unless we make the necessary modifications and changes based on current results, especially in the Parts Department. 

Combining all the above and staying informed is a great formula for success. Even though ACG "Smart Parts" was unable to attend this years NADA Convention due to other commitments, I did spend some time to review the agenda, schedules and topics that had my attention.

I was amazed, but not shocked that so many of the topics discussed in work shops, events and exhibits seem to share the same theme.

Once again, the information age led by social media including Twitter, Facebook, Linkedin, Ebay and Website Innovations seem to dominate all other topics, products or services. 

Even though many great products and services were well represented, the basics of providing great customer service never gets old. The combination of these best practices along with all the social media outlets is definitely the wave of the future.

Another "peek of interest" for me that has led me to more research is the definition of the different types of websites. New to me, but maybe not others that the definition of different websites such as; stand alone, adaptive and responsive can make a huge difference in how we stay in touch with customers.

Responsive websites are getting the most attention and appears to be the type of website preferred by Google. Customers are more engaged and have more interactivity with these type of sites and also have a higher response and purchase percentage than most conventional websites.

Looking ahead, I believe that more and more Parts Departments are going to be heading down this same road. Online ordering is already here as "shopping carts" are taking on a whole new meaning.

So, get your "aps" ready and your websites tuned up because the future is now!

The future looks very optimistic and if you wait....you just may miss some great opportunities.!

So....."Don't Wait...Fix It Now!"   

Dave Piecuch is the Vice President of Automotive Consultants Group Inc. and is the Head Coach for Smart PartsTM. The only "Results Based" High Return Training, Coaching, and Consulting company in the world!  Dave can be reached at Cell 786-521-1720 or E-mail at dave@smartservicetraining.com Vist our Website at www.smartpartstraining.com

Forecast 2015: "What Can We Expect?"

Forecasting any future event to some degree of accuracy requires a combination of current trends, past performance and applicable data. The purpose of forecasting itself gives us goals and guidelines moving forward into each day, month and year.

Weather forecasters also utilize current trends and an extreme amount data to forecast or "predict" future weather results, but their goal is to provide weather information in advance in order for us to prepare for future weather conditions.

As we move into 2015, ACG "Smart Parts" will take an in depth look at industry expectations this year and how it effects our own forecast projections. We will also "walk through" just how we can develop realistic and predictable forecasts that stretch our goals to the limits.

According to N.A.D.A. (National Automobile Dealers Association), there are well over 250 million vehicles currently in operation in the United States. This number has been pretty consistent since 2009, but the staggering statistic is that the average age of these units in operation his risen from 9.5 years to 11.5 years!

This figure alone gives the dealerships' fixed operations a boost as people are keeping, maintaining and repairing their vehicles for a longer period of time. Even more evidence how important customer retention is and where our focus should be.

Another N.A.D.A. statistic reveals that service and parts sales have also been climbing at a steady 5% each year since 2009. Although, service and parts sales are down 4% of the dealers total sales as vehicle sales have risen over 10% over the same period, which is also a good trend.

One of the most encouraging statistic from N.A.D.A. is the average dealer's net profit as a percentage of net worth is up 11% over the last five years. So even though the number of total new vehicle dealers has dropped significantly in recent years, they are much stronger financially.

"So how does this information help me in developing my forecast for 2015?"  

Building a forecast relies heavily on the market's ability to meet future forecasts. As mentioned in some of the above N.A.D.A. statistics, the trends are all pointed in the right direction for "aggressive forecasting" and building overall potential. Even though primary market areas, (P.M.A) may differ, the overall trend is pointing in the right direction.

With these trends moving in the right direction, it is not surprising that many dealers I know are expanding their operations, particularly in service. Increasing technician staff increases billable hours and overall labor sales as well as increasing parts sales. Increasing staff also allows the dealer to expand their hours of operation to nights and weekends.

As far as developing a parts department forecast, our research "rides" mostly on the forecasts of the other departments in the dealership. Other than "over the counter" retail and wholesale sales, parts sales are primarily generated through the service and sales departments.

Forecasting service parts sales depends highly, if not mostly on production capabilities. N.A.D.A.'s Annual Financial Profile also revealed that the average dealership's service department staffs 15 technicians with 20 bays and an average overall door rate or effective rate of just over $100.00.

Based on the above averages, at 100% productivity and an eight hour clock day for techs, this would result in 120.0 billed hours each day. At $100 average charge per hour, the result would be approximately $12,000.00 in total labor sales per day.

By utilizing these above statistics along with current productivity percentages and "parts to labor" ratios, I can set my service parts sales forecasts quite easily. If my "parts to labor" sales is 80% of my total labor sales, this would result in approximately $9,600.00 in service parts sales daily using the above sample.

I can actually take it one step further by breaking down the labor mix of customer pay, warranty and internal that would give me the exact forecast for service parts sales for each pay type. Again, all predicated from service departments ability to produce "billed hours". Service sells only time, which is a perishable inventory and we can never get it back. 

The above example holds true for forecasting accessory sales as new and used vehicle sales projections will ultimately determine our accessory parts sales. This is just another reason why forecasting should be a collective effort with all managers.

The last area of parts forecasting is the only one that the parts manager controls without other departments' participation and that is "over the counter" retail and wholesale sales. It is also the most impacted by individual dealers' primary market area and market trends.

Even though "over the counter" retail is usually our lowest sales category, "over the counter" or "back counter" wholesale sales have huge implications for some dealers. Manufacturer discounts and allowances are also profit centers for larger dealers and have to be forcasted. 

Wholesale sheet metal sales are getting tougher as insurance companies get closer and closer to direct purchases from the manufacturer. Profits are also almost non existent as competition grows, limiting profitability to earned discounts and allowances, much like new vehicle sales.

Forecasting these "over the counter" wholesale sales requires a lot of trend analysis, market research, expense management and a proper business plan to achieve predictable results. These forecasts also require the most aggressive approach due to the investment and logistics required to be profitable.

In closing, the most important reason to forecasting in the first place and if done properly, it gives us a goal to reach each day, month and year. Having a forecast helps us to achieve our goals and expectations. In my mind, there is no greater feeling than achieving these projected goals.

"Are You REALLY Ready For 2015?"..... 

Dave Piecuch is the Vice President of Automotive Consultants Group Inc. and is the Head Coach for Smart PartsTM. The only "Results Based" High Return Training, Coaching, and Consulting company in the world!  Dave can be reached at Cell 786-521-1720 or E-mail at dave@smartservicetraining.com Vist our Website at www.smartpartstraining.com

2014: "The Year In Review"

Each year at ACG "Smart Parts", we dedicate our last issue of the year looking back at the year in review. From my perspective, not only do I enjoy "drilling down" the year in general, it's also kind of a "wake up" call. The year always seems to pass by so quickly and many times, we don't even know what hit us.

The "Year In Review" not only wakes me up, it prepares me for moving forward into the next year. The research helps to put everything into perspective and I would encourage all "Smart Parts" Readers to do the same. 

Before we get into some of the numbers, trends and overall analysis, I want to provide everyone with the sources I used in this research. Keep in mind, other than our own data here at ACG, all this information is readily available to everyone out there on the internet.

For years, N.A.D.A. (National Automotive Dealers Association) and Automotive News have been the standard resource for most dealers and I agree 100%. I will be just scratching the surface with some of this information sharing, but all of it is available online.

Resources:

NADA DATA   Annual Financial Profile 2014  www.nada.org.

Automotive News November 2014 Issue  www.automotivenews.com

Currently, there are 17,665 new car dealers in the United States with California and Texas leading the way with 1,377 and 1,210 dealers respectively. This in itself is a pretty interesting number considering that there used to be well over 20,000 new car dealers in the U.S. not too many years back.

Through November 2014, the "Big 3" are back in line leading the way with GM, Ford and Chrysler. The next 3 include Toyota, Honda and Nissan in that order. That's a pretty big shift over the previous few years as domestics have stepped up to plate to get back into the race. 

Even though there are fewer new car dealers now compared to a decade ago, sales are on the rise! Overall new car sales rose 7.5% from 2012 to 2013 and current, through November, new car sales are up 5.4% over 2013. These numbers are pretty impressive and actually, since 2010, each year has shown increases overall.

As a matter of fact, N.A.D.A. says that their "Optimism versus New Vehicle Sales" Report numbers have been steadily climbing as well since 2010 to support these overall sales increases. Another astonishing fact that shocked me was that New Vehicle Net Profits are also up since 2011, increasing each year after a previous decline of five years.

Why are these statistics important?.....

Quite simply, as more "iron" hits the road, the more opportunities there are for Service and Parts Departments. Fixed Operations have also followed suit with the New Vehicle Sales increases as total Dealer Fixed Operations Sales rose 5% from 2012 to 2013 at a whopping $84.6 Billion Dollars. Many believe that 2014 will surpass this mark as well, currently tracking at a 4.8% increase through November 2014.

Overall, the Fixed Operations may only account for 11.6% of total dealer sales thus far in 2014, but when you consider the gross retention side of the equation, that's whole different ball game. Those percentages are much higher as represented in substantial increases in "Fixed Coverage" and overall "Service Absorption" in many dealers over the past few years. 

In my opinion, the opportunities ahead are as good as I've seen in my 35 years in the business. The opportunities are always good, but it's not that easy when you compare these new opportunities to some in the past. Competition has always played a role, but retention is where it's at. We need to get our customers coming back.

If we don't have the right people following the right processes, all these new opportunities fall by the wayside. I have met, trained and coached Fixed Operation Managers over the years and if there's one thing that I hear most often from the "seasoned" veterans out there is..."Dave, it just doesn't seem as easy as it used to be..."

This is what separates the "good from the great" as the ones who are great take the necessary means to keep up with people, process, accountability and on going training/coaching. It never stops and will always be on going.

As a third party to the dealer, we have definitely seen a rise in the dealers' interest in training and coaching in 2014. In the car business, we all know that there are "waves" that are cyclical in nature and it's upon us again. Training and Coaching is coming back to the fore front.

As I mentioned earlier, there are 17,665 new car dealers in the United States, not counting our friends to the north in Canada. In 2014, ACG's "Active Contact List" of New Car Dealers has risen to 22.6% in just one of our social media venues. These are also key indicators that follow earlier trends mentioned.

For all my "Smart Parts" Readers out there?...

Strap yourself in because 2015 is right around the corner and even though we are wrapping up another great year at ACG "Smart Parts", we are also poised and ready for our "Best Year Ever"!! Numbers don't lie and these statistics represent another great year is upon us!!

Are You Ready?.....

Dave Piecuch is the Vice President of Automotive Consultants Group Inc. and is the Head Coach for Smart PartsTM. The only "Results Based" High Return Training, Coaching, and Consulting company in the world!  Dave can be reached at Cell 786-521-1720 or E-mail at dave@smartservicetraining.com Vist our Website at www.smartpartstraining.com

Motivation: "Our Inner Driving Force"

So here's the six million dollar question....."What ever possessed us to get into the "car business" in the first place"? Was it our passion for the automobile way back when Henry Ford rolled out that first Model T?....or was it the "need for speed" that drove us into the passion to go faster and faster? just maybe, we liked working on our cars in the back yard on those warm Sunday afternoons.

I think it was a little of all the above, but as a business owner, it was probably one of the easiest businesses to own as it really didn't take much of a business mind to sell cars and parts to turn a profit. 

Wheeling and Dealing became an art form and anyone with a little business savvy and a little capitol was in business. Plus, with cash flow in excess amounts in the millions, who wouldn't want to own a new car dealership?

So, motivation in the early years wasn't hard to determine, but as the years passed...it wasn't so easy any more. Many generations upon generations of owners were folding up and big corporation entered the once known "mom and pop" business. 

So what's the motivation today? Why venture down that road with far more risk than ever before and even more important...why take the risk? 

The automotive industry is still a major part of our economy and there still remains that ultimate desire and passion for the automobile! Actually, this desire seems to be bigger than ever before as banks get larger, homes get bigger, "motivation" lead by this desire. It's also bigger and more competitive than ever before.

People seem to want more and more and the "need to succeed" is in my opinion higher than I've ever seen in my lifetime. So where does all this "motivation" come in?..Same as it always has, from within each one of us.

Ever wonder why we see more and more motivational speakers or books today than ever before? I believe it's because we need to be driven to succeed. I'm not talking just being a little successful, we need to be motivated to be the best we can be. 

If I was to ask most of our "Smart Parts' Readers just how many books, articles, blogs or any topic related to or about motivation, I would probably get many responses like..."Haven't we heard enough about motivation already?"....and quite honestly, I would have to agree.

Even though often heard, lectured and spoken by many prominent individuals, motivation can take on many different definitions and terminologies. As a matter of fact, if you were to "google" the word Motivation by Wikipedia, you will actually go insane with the number of definitions!

Here's my point, each one of us has to find that "Inner Driving Force" that makes us tick and drives us to levels beyond our goals and expectations. One of my favorite "motivating" quotes is actually anonymous to my knowledge, unless someone could correct me and it's called......

The Bottom Line

 Face it; nobody owes you a living,

 What you achieve or fail to achieve in your lifetime, is directly related to what you do, or fail to do.

 People don’t choose their parents or childhood, but you can choose your own direction.

Everyone has problems and obstacles to overcome, but that too is relative to each individual.

Nothing is carved in stone; you can change anything in your life; if you want it bad enough.

 Winners have no excuses. Those who take responsibility for their actions are the real winners in life.

Winners meet life’s challenges head on, knowing there are no guarantees, and give it all they got.

And never think it is too early to begin, time plays no favorites and will pass whether you act or not.

Take control of your life. Dare to dream and take risks.

                                              --Anonymous

I believe that each one of us has that "motivational" driving force that can make the difference between success or failure. I also realize that we are not all the same and what motivates one individual doesn't necessarily motivate the next individual. What's most important is what motivates YOU! 

Here's where my challenge comes in for all you "Smart Parts" Readers out there. I'm going to list my "Top 10 Daily Motivational Habits" that I use on a daily basis. Just because these are my own personal ten motivational items, yours could be totally different.

I would even go out on a limb here and challenge all dealers and dealer managers to come up with ten motivational items that can be done consistently each day. Then, after thirty days, measure your results to your prior results before starting the "TOP 10 Daily Motivational Habits" 

Here are my TOP 10 Daily Motivational Habits:

1.) Wake up each day with a positive attitude. It's a choice and I choose to make something positive happen, no matter how big or how small.

2.) Have and live a purpose driven life!...there is a purpose you are here and there are people who are counting on you to make a difference in their lives. Believe in yourself!

3.) Have a Daily Action Plan each day and write it down!

4.) Have a "Road Map" to each Daily Action Plan. How are you going to get there?

5.) Write down your goals in life! Daily, Weekly, Monthly, Annually and Overall Lifetime Goals.

6.) Hold Yourself Accountable...There will be "Bends In The Road", but stay Accountable.

7.) Challenge yourself before challenging others, Judge yourself before judging others.

8.) Surround yourself with "goal-oriented" people and lead by example.

9.) Share what you have learned, our goal as managers is to develop individuals  

10.)  Learning never stops, never be too humble to to learn something new.

Don't go through each day like it's "Ground Hog" Day all over again! Each day is new and and has new opportunities. 2014 is winding down fast and before you know it, you WILL be asked by your owners and dealers...."What's you forecast for next year.....same as the last"?

That's my Top 10!.....What's Yours!

I'll leave you with some of my own personal favorites from one of the best motivational speakers of all time!

“Motivation and bathing are not permanent. That’s why we need both every day”…- Zig Ziglar

“You are designed for accomplishment, engineered for success and endowed with seeds of greatness”- Zig Ziglar

“You can have everything in life you want, if you will just help enough other people get what THEY want”….Zig Ziglar

“Life is tough…but when you are tough on yourself, life will be infinitely easier on you”…..- Zig Ziglar

The Definition of “Average” Is When After All Has Been Said and Done…..There is Usually More Said Than Done… - Dave  Piecuch, ACG

Dave Piecuch is the Vice President of Automotive Consultants Group Inc. and is the Head Coach for Smart PartsTM. The only "Results Based" High Return Training, Coaching, and Consulting company in the world!  Dave can be reached at Cell 786-521-1720 or E-mail at dave@smartservicetraining.com Vist our Website at www.smartpartstraining.com

The Ultimate Parts Manager: Part Three

As we come down to our final segment of our three part series on "The Ultimate Parts Manager", I really spent some time thinking over just how to conclude the series. When you stop and think about it, this is no "cookie cutter" position and there has to be much more than just three parts to the "make up" of this dealer manager.

In the first two parts of the series, we spent time looking at the background, education and as far as what specific personality traits seem to be common. We also touched on how most Parts Managers seem to "stumble" onto this dealer position in the first place.

In part three, I decided to look for the "intangibles", or, the qualities of "The Ultimate Parts Manager" that don't seem to follow the normal resume, script or path taken by most other Parts Managers. So let's take a look at some of these qualities that I feel, do not ordinarily accompany this position.

One last note before we move on...as you are reading, don't ask yourself if you already fit these qualifications, or perhaps you may feel you already DO these things. Ask yourself how good are you AT these things....

Number One: LEADERSHIP 

With all the "prerequisites" that we talked about in the first two parts of the series, it's pretty obvious to me that to be in the Parts Manager position, the background, education and certain personality traits are a given.

 Most Parts Managers that I have met and including myself, were drawn to that role because we "fit" the position in all those three areas.

In my opinion, true leadership abilities are not trained, passed down or learned. To me, leadership abilities are "born" into some and not all, or perhaps "acquired" by others. Either way, true leaders have a presence about them, never to be mistaken as a follower.

Even though, leadership abilities are necessary in all our dealer management positions, it's not so common in the Parts Manager position. Let me explain a little further with the following scenario...

Picture in your mind a typical dealership, which we will call ABC Motors Dealership in Anytown, USA.

 In the Grand Opening photo, they highlight all the managers with no owners present, just the management staff including the General Sales Manager, Office Manager, Service Manager, Collision Center Manager and Parts Manager.

In that picture, other than physical appearance, which manager would you normally see as a "stand out" or most noticeable? Did you also notice how I laid out the order of managers in the previous statement? How common is it that we see or hear the Parts Manager mentioned last?

My point is that "The Ultimate Parts Manager" MUST be a standout in their overall dealership role and not just a leader inside those Parts Department doors.

Number Two: GOAL ORIENTED

Our second "intangible" quality of  "The Ultimate Parts Manager" should not be taken lightly either. I know that many or all of us are going to say that we have goals. My partner Guy and I have our own definition of what a "goal" is and that is ..."it's just a dream with a deadline"!

"The Ultimate Parts Manager" not only has goals, but they are written down. Many studies have proven over and over again that "written goals" are achieved at a high percentage compared to goals not written down.

In the terms of "The Ultimate Parts Manager", these goals are usually tied into meeting, achieving and surpassing all parts guidelines such as first time off shelf fill rates, gross and true turns, stock order performance and parts movement cycles just to name a few. The same is true for meeting or exceeding all sales, gross and net targets consistently.

Lastly, on the topic of goal orientation..."The Ultimate Parts Manager" is not the only one with their goals written down. All the other Parts Department Staff Members do the same with their own goals as "The Ultimate Parts Manager" makes it a requirement. By the way, just another "leadership" quality thrown in here as well.

Number Three: ETHICS 

In my opinion, we don't hear enough about ethics these days. I can still remember many years ago, my Service Manager actually conducting class after hours along with our owner just on the dealer's "code of ethics". The following is an internet definition by "Investopedia" on code of ethics:

"A code of ethics document may outline the mission and values of the business or organization, how professionals are supposed to approach problems, the ethical principles based on the organization's core values and the standards to which the professional will be held."

After I read this definition as well as a few others on "code of ethics", I realized just how this term has seemed to disappear over the past several years. To me, this topic has to be the biggest "gut checks" for all of us and not just "The Ultimate Parts Manager", but it is definitely one of traits of this super manager.

Number Four: SALESMANSHIP

The fourth "intangible" quality of "The Ultimate Parts Manager" that I want to shed light on is Salesmanship. Believe it or not, I'm not just referring to the "ability to sell" parts as I am referring more to "The Ultimate Parts Manager's" ability to "sell themselves". 

"The Ultimate Parts Manager" has the ability to sell themselves to not only their customers, but to other employees as well. That "built in" ability leads others and creates a teamwork atmosphere second to none. Trust is extremely high which leads higher efficiency and overall goal achievement for all involved.

Success is a constant for "The Ultimate Parts Manager" because it is an expectation and a reality. Profitability is actually a "residual" of all the above and of course, our last quality of "The Ultimate Parts Manager" is their ability to manage......

Number Five: PEOPLE & PROCESS

Our last "intangible" quality of "The Ultimate Parts Manager" is their ability to manage People & Process. All the above achievements, success and leadership abilities mean absolutely nothing without the right people following the process.

I believe it cannot go understated that this is an absolute MUST to be "The Ultimate Parts Manager". The people we employ and staff have to trust their leadership to take them down the road to their eventual success and future.

It's the worst possible "trickle down" imaginable if this "intangible" quality is not evident. Lack of the proper people and process can lead to a lack of leadership which leads to a lack of trust.

Once the trust in leadership is gone, so goes the process accompanied with undesirable results. Once all this goes down?...you guessed it!....No more "Ultimate Parts Manager"!

I guess it's not so easy to be "The Ultimate Parts Manager"! Even though we have dissected the make up of this super manager, is it possible that this Parts Manager is out there?

Well?...I believe so, but more importantly, I believe that assessment can only come from within. Are you "The Ultimate Parts Manager"?

Dave Piecuch is the Vice President of Automotive Consultants Group Inc. and is the Head Coach for Smart PartsTM. The only "Results Based" High Return Training, Coaching, and Consulting company in the world!  Dave can be reached at Cell 786-521-1720 or E-mail at dave@smartservicetraining.com Vist our Website at www.smartpartstraining.com

The Ultimate Parts Manager: Part Two

In part one of our three part series, we found out that in most cases, "The Ultimate Parts Manager" came up through the ranks, working in the Parts Department. In my opinion, nothing can replace "on the job" training and experience.

We also discovered that this Parts Manager has received the proper education along the way to manage the business aspects of the Parts Department. The skills, ability and knowledge attained along with the desire to succeed have set a strong foundation for "The Ultimate Parts Manager".

This strong foundation, combined with the proper "belief system" is now a recipe for success. The only missing ingredient now is finding out what type of person or "personality traits" seem to be common in this individual.

In part two, we will take an in depth look at some of these personality traits and behavior patterns. Keep in mind that even though certain personality traits seem to accompany most Parts Managers, it doesn't necessarily mean that any particular personality trait or behavior pattern is a requirement for success.

In my opinion, "The Ultimate Parts Manager" has to be a critical thinker with more of an inward personality. They tend to be very accurate and have specialized skills, while being diplomatic and consistent. They also tend to be cautious and hold themselves to a high standard.

In comparison, I've always equated or compared this personality type right along with accountants, engineers, airline pilots or even corporate CEO's as attention to detail is a prerequisite to success.

This systematic approach and precise thinking is critical in managing the dealer's parts inventory as well as maintaining a healthy return on investment. Providing customers a high level of service and having the right part the first time is no accident.

Now that we have "dissected" this core personality for the most part and quite honestly, many Parts Managers seem to have many of the above personality traits. Although, I believe that there are a few other personality traits critical to the success of "The Ultimate Parts Manager".

In my opinion, what separates the average Parts Manager from "The Ultimate Parts Manager" is that there are other personality traits not commonly found in most people in the Parts Manager position.

"The Ultimate Parts Manager" also has some "outward" or "extroverted" personality traits which are much more direct. These added personality traits allows "The Ultimate Parts Manager" to interact with others much more efficiently.

These outward and direct behavior patterns include leadership skills, goal setting and a "take charge" ability without fear. They are always looking for new opportunities and are visionary and willing to try new things, never afraid of change and in the end, desired results are always expected.

As you can see, "The Ultimate Parts Manager" is the complete package and is unique in nature. The combination of "direct" and "indirect" personality traits allows the ability to shift the personality when necessary depending on the environment.

Now that we have all the ingredients to success, what happens next with "The Ultimate Parts Manager"? Where does the road lead to and what can we expect? It doesn't end here as we have more next month when we conclude our three part series on "The Ultimate Parts Manager"!

Dave Piecuch is the Vice President of Automotive Consultants Group Inc. and is the Head Coach for Smart PartsTM. The only "Results Based" High Return Training, Coaching, and Consulting company in the world!  Dave can be reached at Cell 786-521-1720 or E-mail at dave@smartservicetraining.com Vist our Website at www.smartpartstraining.com