"And Like a Good Neighbor?"...One Parts Blogger's Opinion

Like many of you, I have recently been reading a lot of blogs and articles concerning the recent implementation of the State Farm Parts Trader Pilot Program. It has obviously created quite a stir in both the Collision Center service industry as well as for parts providers.

The State Farm Parts Trader Program is already in the pilot stages in a few markets in the United States in many Collision Centers. Many automotive dealer's parts managers have already dropped out of the program for obvious reasons. 


I’m not going to comment on the particulars of the program as many prominent industry “bloggers” and writers have done so well in getting the message out, but I have done my research and here’s “One Parts Blogger’s Opinion”.

Many of you may or may not know that I do a fair bit of travel throughout the United States and Canada, providing Service & Parts Training in automotive dealerships. When I started reading and researching the State Farm Parts Trader Program, it drew my attention quickly as this program has a lot of similarities to the collision industry in a couple of Provinces in Canada.

In these Canadian Provinces, the automobile insurers control the purchase, sale and distribution of collision parts to the collision centers, all the way to the eventual repair of the customers’ vehicle. 


As in the State Farm Parts Trader Program, collision parts are put up for bid for parts suppliers and the winning bidder becomes the area’s OEM parts supplier.

Even though the intentions of their program are similar to what State Farm is claiming to achieve, many of these concerns paint a different picture and goes beyond any article or blog that I have read thus far concerning the State Farm Parts Trader Program.

As expected in the concerns I have read, lead times and cycle times increased as well as the administrative time while parts profits decreased. 


What I did not consider is how these changes would affect the overall method of doing business in the Collision industry or what it may lead to in the future. It has already changed the automobile collision industry to some degree with our good neighbor to the north.

One of the areas, for the most part that has not been mentioned to my knowledge is the possible changes in the way the insurance claim is written in the first place. 


I personally know quite a few experienced insurance adjusters that are being replaced by lesser experienced, lesser paid adjusters to cut costs. This may also lead to even more supplements, longer cycle times and administration costs.

I believe there is a distinct possibility that we will also see the eventual elimination of the adjuster position as we know it, being replaced by digital imagery for authorization. 


Who knows?...in the near future we might even see collision centers having to perform “tear downs” prior to the initiation of writing the claim in the first place.


I also wonder if this direction in the parts end of the collision industry will eventually include paint and materials as well. To me, it only makes sense to include paint and materials in the overall equation right along with the overall control of the parts warehousing, pricing  and distribution idea.

In conclusion, I think we are definitely heading into a new evolution in the collision industry and it may be here to stay. Fewer Collision Centers, Satellite Repair Facilities, Central Parts Warehousing and Centralized Digital Estimating Centers are just a few of what I see coming in the future. 


The one thing that NEVER changes, but will be highly affected by all this is “Customer Service”. I for one believe that these evolutionary changes will impact the  ability to provide the excellent service to collision centers and ultimately, the consumer.


Dave Piecuch is the Vice President of Automotive Consultants Group Inc. and is the Head Coach for Smart PartsTM.  Dave can be reached at Cell 786-521-1720 or E-mail at dave@smartservicetraining.com Vist our Website at www.smartpartstraining.com

Is Your Dealer Management System (D.M.S.) Telling The Truth?

Recently, I was asked by a Service Manager to perform an evaluation of his dealership's Parts Department. He  was very concerned because it appeared to him that they never seem to have the "right parts at the right time" and he was tired of putting his customers in rental cars while they waited for parts to come in the next day.

On top of that, his shop productivity was suffering because of all the technician "down time" going back and forth to the Parts Department, bringing vehicles in and out of the shop or just waiting for the Parts Department to chase down a part.

Unfortunately, I have heard this from MANY Service Managers' around the country and led me to the title of this month's "Smart Parts" article. It all begins with the Parts Manager's "belief system" and just how he or she is  reporting to the Dealer Management System. (D.M.S.)

In this particular dealership's Parts Department Evaluation, I first noticed that ALL D.M.S. parts orders were receipted as STOCK!...No "Customer Orders" reported, No "Emergency Purchases", No "Lost Sales", or as I refer to as "Potential Missed Opportunities".

The only "clue" or variation that I detected was that over 50% of the receipts were "Outside Purchases"! Aha!....a little bit of the actual truth is coming out now! 

In this case, less than HALF of the parts orders are being filled by STOCK, let alone the "Customer Orders" that are being ordered, receipted and classified as STOCK as well. These "Outside Purchases" are receipted differently because the original order was not generated by the D.M.S., they were purchases through other vendors or dealers to fill a potential "Emergency" situation.

Here's where the "Common Sense" of this evaluation is now coming to a head! Does it make sense that ANY Parts Department would have NO Customer Orders, Emergency Purchases or Lost Sales? Better yet, have you seen ANY Parts Department fill over 99% of their orders from STOCK, or at least, that's what this report indicates.

This would mean that over 99% of the time, this Parts Department fills the order from STOCK on the first demand for a 99% "First Time Off Shelf Fill Rate". I guess the old saying is true..."Garbage In, Garbage Out"! Remember, just because the information is on the report, it doesn't necessarily mean the information is true or accurate. 

Many Parts Managers report in this same way because in their minds, that's the way they order ALL their parts to get the best discounts and allowances. They don't realize, or often care about the adverse effects their reporting procedures have on CSI, additional expense, lost productivity and most important, profitability.

On most dealerships, Service Departments' lose at least 15% in shop productivity, not counting the added expense due to these improper reporting practices, which by the way, highly outweigh a little extra parts discount.

Lastly, many of these types of situations are becoming more common because of what I call the "Double Edged Sword" which is the manufacturers' "over night dedicated delivery service".

 It's obviously a good thing because parts are more available with shorter lead times, but the bad thing is that more and more parts managers are stocking less, overriding basic set ups and controls because they don't have to stock it now...they will just order it overnight!

The D.M.S. Parts Monthly Analysis Report can tell us a lot, or expose a lot. Bottom line is that we need to be reporting correctly and honestly in order to have efficient and proper "First Time Off Shelf Fill Rates" and a higher parts "Return on Investment"

Need to know more?....Contact us at www.smartpartstraining.com


Dave Piecuch is the Vice President of Automotive Consultants Group Inc. and is the Head Coach for Smart PartsTM.  Dave can be reached at Cell 786-521-1720 or E-mail at dave@smartservicetraining.com Vist our Website at www.smartpartstraining.com

Maximizing Parts In-Coming Phone Calls

Have you ever wondered how many phone calls are coming in to the dealership Parts Department on a daily basis? How many of these calls actually end up in parts sales?

Are we "maximizing" our opportunities by measuring our "Parts Phone Call Closing Ratios?" Lastly, are the Parts Counter people "trained" to sell parts, or are they just "order takers"?

These are just a few of the questions I had to ask myself on a recent dealer visit when the owner asked me to find new ways to increase his overall parts sales and gross. I decided to get "back to basics" on just where we could improve on opportunities that might go unnoticed.

I realized that the biggest opportunity that most dealerships miss in the Parts Department is "In Coming Parts Phone Calls". 

After performing a "Mystery Phone Shop" of the Parts Counter Staff I noticed that not only are the people answering the phone not trained in "how to" answer the phone, but they never asked me for the sale!

I do know that it's not "New News" and  we have all heard the infamous "Parts Hold" scenario, but there is a proper way to answer the phone, even if the in coming caller has to be placed "on hold" for a moment. 

The interesting thing about calls to the Parts Department versus calls coming in to the rest of the dealership is, in most cases, it's the ONLY department that doesn't have a "back up" person like a receptionist to answer these calls when they are busy!

They are EXPECTED to answer the phones, take care of the technician counter, look up parts, prepare estimates and so on.

The problem is that most other people in the dealership seem to think they stand around most of the day and are not being productive, but I can assure you that they have many, many moments during the day when they are expected to multitask.

So where is all of this leading to and what are the answers to the questions asked in the beginning?

First of all, we have to train our staff to answer the phones properly with a Phone Script that includes not only a friendly greeting or how to properly ask a customer if they wouldn't mind being placed "on hold" for a moment, it must contain specific questions that will help to measure the "Sales Closing Ratio" for proper follow up as well as building "Parts Sales Incentives".

Secondly, we already know that most Parts Counter people keep a "note pad" close to where the work, near the phone to write information down when the phone rings, or maybe to write down information from technicians or customers at the counter.

We are simply going to create a "Scripted Note Pad" for the Parts Counter Person that will provide a friendly greeting reminder and specific questions to ask that will give us all the information we need to follow up with customers and measure our "Sales Closing Ratios".

Here are some specific items that should be included in your Parts Counter Person's "Scripted Note Pad":

• Friendly Greeting with Introduction 
• Specific Friendly Greeting for Customers who are put "On Hold"
• "How Can I Help You?"
• Customer Phone Number (for follow up)
• Vehicle Information (Year,Make, Model, Vehicle Identification Number, etc.)
• Part(s) Requested? Y/N
• Parts In Stock? Y/N    If Not, Parts Ordered? Y/N
• Customer Installing Part(s)? Y/N (Possible Call Transfer to Service)
• Price Quoted? Y/N
• Discount Given? Y/N (Offered in Lieu of Losing the Sale) 
• Sold Part(s) Y/N
• If Part(s) Sold, include Invoice Number
• If Part(s) NOT Sold, Give Reason (i.e. cost, availability, estimate, etc.)
• Close The Sale ("Thanks for Calling, My Name Is ___________)

The results of the implementation of this Parts Counter Person "Scripted Note Pad" were astounding! We created a simple excel reporting system to measure the "Closing Ratio" of these in coming calls with the "Scripted Note Pads".

Each Counter Person was required to turn in their "Scripted Note Pads" at the end of  each day for follow up. The Parts Manager reviewed all the "Scripted Note Pads" and actually phoned customers who had elected not to purchase for the reasons noted. Lo and Behold, the Parts Manager was able to "capture" sales that would have gone unrealized!

Customers were AMAZED that the Parts Manager was actually calling them back to follow up, asking why they didn't purchase. One customer in particular called for prices on brake pads and did not purchase because they were "price shopping" and didn't know the difference between the "factory" brake pads versus the lesser expensive economy brake pads.

The customer was actually a Service Customer that owned two vehicles purchased AND serviced at the facility! The Parts Manager actually "sold the service appointment" to the customer and the vehicle was serviced the next day with the "factory" brake pads at the dealership!

I believe that we need to "re-think" our philosophy on parts sold over the phone, or our "over the counter" parts sales. In many cases, I have found that "Counter Retail Sales" have traditionally been a "high gross, low sales" category on the dealers' financial statement.

Are we really "maximizing" our "over the counter" Parts Sales opportunities? Is your Parts Counter Staff  "trained" to sell?

In most dealerships, the "over the counter" retail sales average less that $10,000.00 per month, with an average gross retention of 38% - 42%. With that said, I wondered if we focused MORE on this opportunity and tracked the "Closing Ratios" of these in coming parts calls, even if we did have to give up a little gross percentage.

Would I rather have 40% of $10,000.00 or maybe 30% of $40,000.00? Gross pays the bills, but it seems that we get caught up on the "NORM" with percentages and low counter sales instead of being competitive, training "ALL" our sales staff and retaining our customer base. 

Dave Piecuch is the Vice President of Automotive Consultants Group Inc. and is the Head Coach for Smart PartsTM.  Dave can be reached at Cell 786-521-1720 or E-mail at dsp0417@aol.com Vist our Website at www.smartpartstraining.com

  

Dealing With The Cycle Of Change

Over the past few months, I have highlighted articles that were based on "change". I couldn't help myself when I was recently asked to write an article about the "state of the union" so to speak concerning not only the Parts side of our business, but our industry in general. 


This was an exciting task because when you think about it...the more our industry changes, the more it stays the same! This "Cycle of Change" is constant and we have to be ready to adapt to these changes just to keep up with the competition, especially in the aftermarket. 


The "state of the union" in our industry has always seemed to revolve around NADA (National Automobile Dealers Association) and they have been a staple on our industry's standards and guidelines. This is where "the more things change, the more they stay the same". The "change" part of this phrase is how NADA is constantly giving us new information to help us with "dealing with the cycle of change". 


The "same" part of the phrase is where their consistent wealth of information along with their many groups of dealers that provide these standards and guidelines. Even though NADA is not sponsoring this particular article, I could not help but pass this information on as a great resource for strategic business planning.


In preparing this article, I decided to go to NADA's most recent "State of the Industry Report" for 2011 and I was amazed how much information was available as I "drilled down" some specifics.


 I have used this information in the past, but I had to stop and think that "years ago" we were not privileged to this much data, graphs and comparisons unless the dealer was an NADA Member, which of course, many are today. Even the average consumer has the same access to this information which has always been a "secret" in the past. 


I started my research for this article and here are some of the facts I found not only about the Parts side of the business, but also some pretty interesting observations about the "dealership as a whole" in their many national comparison reports. The results are compiled from NADA's latest "State of the Industry" Report for 2011, which compiles information through 2010.

• Overall Parts & Labor Sales: Up 5.2% (Due to Warranty & Internal Increases)
• Customer Labor Down: 4.8%
• Number of Dealerships Open with Weekend Hours: 46%
• Average Number of Hours Open for Service:  56
• Dealers with a Collision Center: Down 10% since 2000
• Total Vehicles in Operation in United States: Up 16.4% since 2000
• New Vehicle Registration in United States: Down 28% since 2000
• Newspaper Advertising as a % of Total Dealer Advertising: 2010: 22%  2000: 52%
• Internet Advertising as a % of Total Dealer Advertising: 2010: 23.7%  2000: 4.6%
• T.V. and Direct Mail Advertising: 5% - 6% 2000 - 2010  

NADA also stated in this report...."The recovery from the recession continued at a modest pace in 2010. Dealers continue to compete with independent service outlets for far less frequent periodic service and repairs required on newer, more sophisticated vehicles..."

So what does all this information mean? I know many of you are probably thinking..."So what?....this isn't new information!!" The real question is what are we doing with all this information?


 I know one "bullet point" that sticks out to me is that the "Weekend Service" option is slowly becoming a new standard and if your Service Department is NOT open as many hours as possible on the weekend, you are probably losing business to the aftermarket. 


How about the fact that many dealers are eliminating their Collision Centers?...does the cost of operating the Collision Center outweigh the bottom line? These are all great questions and they are just a few items that are in this report which I could have spent hours researching and planning.

One last one to bring up...New Vehicle Registration is down, but the overall Vehicles in Operation are up! I know that we all know that the average vehicle life span is up, but why aren't we "targeting" more advertising for these "older vehicles" and not just the customers in the first, second and third tiers who may have missed their last service? 


I realize retention is one of the primary issues today, but we need to "enhance" that target and utilize the internet more in our advertising budgets. The internet is less expensive and one of the primary sources of communication and will be for years to come. 

So, based on the NADA information above, how much of your dealership advertising budget is dedicated to the internet? These are just a few "bullet points" on the information that is provided at no cost by NADA at your fingertips.


 I would even go as far as to say that most dealers and managers probably know about the availability of this information, but how many actually use it to build your business plan and most important...how to "Deal With The Cycle of Change".

If you haven't visited the NADA website recently, you need to!...simply go to www.nada.org and go to the "Data" section to look for the "State of the Industry Report 2011" The latest industry standards and guidelines are also readily available at the NADA website. 


Dave Piecuch is the Vice President of Automotive Consultants Group Inc. and is the Head Coach for Smart PartsTM.  Dave can be reached at Cell 786-521-1720 or E-mail at dsp0417@aol.com Vist our Website at www.smartpartstraining.com

Five Steps to a Higher Parts Return on Investment

LIMITED OFFER!!

Okay!...so here we go! The "Five Steps to a Higher Parts Return on Investment"!! Pure and Simple, here are the Program Details:

Step One:

• Sign up for this exclusive "one time" offer for one low price of $395.00*                      (Expires April 15, 2012)

Step Two:

• Complete and send in ACG's "Smart Parts" one page Evaluation Form provided via email upon sign up. Include your latest D.M.S. Monthly Analysis Summary, Sales & Gross Information as stated on the Evaluation Form. Within five business days upon receipt of completed Evaluation Form and required information, you will receive a comprehensive Parts Department Evaluation based on ACG "Smart Parts" and NADA Guidelines performed by "Smart Parts" Coach Dave Piecuch.

Step Three:

• Attend a "One-On-One" Webinar with Dave Piecuch to prepare individual Dealer Parts Department "Action Plan" based on Evaluation Results. Future date set for implementation of "Action Plan" items based on Parts Manager and "Smart Parts" Coach schedule.

Step Four:

• Implementation Date Webinar to complete agreed "Action Plan" between Dealer Parts Manager and "Smart Parts" Coach Dave Piecuch. All modification and/or changes to Dealer Management System (D.M.S.) implemented by Parts Manager via "gotoassist.com" (no sign up or additional fees required by dealer).                                            

Step Five:

• Attend a 30 Day Monthly Management Report Webinar with "Smart Parts" Coach Dave Piecuch for review, modifications and/or changes based on D.M.S. Parts Monthly Analysis Summary Report results.  

Training and Implementation Program Duration: 30 - 45 Days  






Program Features & Benefits

• No Consultant or Trainer Expenses
• All Training Completed "In-Dealership" Based on Parts Manager's Schedule
• No Contracts or Long Long Term Agreements. One Time Fee Only!
• "One-On-One" Training with one of the industry's leading experts in the field of Parts Management and overall Fixed Operations. Dave is the author of ACG's "Smart Parts" and has written articles in Fixed Ops Magazine and has conducted numerous seminars for NADA. 
• NO DEALER MANAGEMENT SYSTEMS (D.M.S.) intervention by "Smart Parts" Coach Dave Piecuch. All modifications and/or changes to Dealer Set Ups & Controls input by Parts Manager.
• "FREE" Monthly Analysis Report and Financial Review if needed for six months with "Smart Parts" Coach Dave Piecuch, Parts Manager and Dealer via phone conference call.
• Broader Inventory Coverage, Higher "First Time Off Shelf Fill Rates", Increased Service Shop Productivity, Increased Sales & Gross Profits and HIGHER Parts Return on Investment!

Training Program Topics & Highlights

• Lost Sales Reporting
• Emergency Purchases
• Monthly Sales Analysis
• Phase-In/Phase-Out Criteria
• Source Ranking/Stocking
• Days Supply
• Stock Order Performance/Sales-To-Stock Ratio
• Level of Service/Off Shelf Fill Rates
• "FIRST Time Off Shelf Fill Rates"
• Parts Productivity to Service
• Parts Escalation Matrix
• True & Gross Turns
• Obsolescence Control
• Parts Staffing Metrics
• Special Order Aging
• Parts Counterperson Phone & Sales Scripts
• NADA & Smart Parts Guideline Review

REGISTER NOW

* Dealer will receive a "one time" invoice of $395.00 to include all above program details. Program details and completion as stated guaranteed by Automotive Consultants Group, Inc., 8362 Pines Boulevard, Suite 340, Pembroke Pines, FL  33024. "Smart Parts" is a trademark of Automotive Consultants Group, Inc. 

What's Your Parts Inventory "Rate of Change?"

"What in the world are you talking about?....Parts Inventory Rate of Change"? Believe it or not, that's usually the response I receive when I ask most parts managers that question. Change has been the topic in my first two E-Newsletters of 2012 and I want to finish it off this month by not only talking about change, but also how we measure the "Rate of Change". 


Many parts managers and dealers do not realize that there is a guideline to how much and how quickly our parts inventory should change throughout the course of a year. In this issue of "Smart Parts", we will not only discuss why "Rate of Change" is important, we will also show our "Smart Parts" Readers how to calculate their own Parts Inventory "Rate of Change".


Let's start off by looking at some basics...the average automotive dealership carries anywhere from 7,500 to 15,000 different part numbers with a total number of parts upwards another ten times these figures. Secondly, there are more transactions in the parts department in a single day than there are in the whole dealership in a single month! 


That being said, how "vulnerable" is your parts inventory to mistakes, accounting errors, pilferage, frozen assets and lost sales just to name a few. Here's a couple more questions to ask yourself as the dealer....Is my parts inventory keeping up with my sales demand?...or, How much "blue sky" is there in my second highest business asset?


To be quite honest, most dealer owners don't even pay much attention to their parts inventories as much as they should. I'm quite sure they pay a lot of attention to the New & Used Car Inventories, so why should the parts inventory be any different? 


Change is constant in the parts department and we should keep a "watchful eye" on how much that asset is changing on a monthly basis. This is why the "Rate of Change" is a pertinent indicator as well as important tool to measure the change in parts inventory.


 I have always thought of it this way, if  I had to "sell off" my parts inventory, what would it really be worth, how much CASH could I really get for it?...and even more important, does the inventory value on my financial statement reflect my Dealer Management System (D.M.S) inventory value?


Now that we have struck a chord, so to speak, let's explore how we calculate and measure the parts inventory "Rate of Change" and what guidelines we should use. We will also explore what these numbers reveal and how we can keep our parts inventory "Rate of Change" manageable as well as how to avoid those parts inventory discrepancies when physical inventory time rolls around. 


Here's the formula:

Total Number of Plus & Minus Adjustments X 12 months, divided by the Total Part Numbers in the System (D.M.S) 

Source: D.M.S. Parts Monthly Analysis Report 

Industry Guide: 5% or Less

So what does it mean if the parts inventory "Rate of Change" is higher than 5%? It simply means that there are more than an acceptable amount of "manual changes" to the parts inventory by parts department personnel that may effect the total inventory value. Here are a few examples:

• Inventory Count Corrections (overages/shortages)
• Manual Orders/Receipts/Returns
• Part Number Changes (supersessions)
• Posting Errors
• Poor Housekeeping Practices
• No Parts Employee Posting Restriction Policy 

The "Rate of Change" calculation can and should be performed monthly once the Parts Monthly Analysis Report has been run by the Dealer Management System (D.M.S.). As you can see from the examples above, a lack of control in any of these areas can and will lead to asset liability concerns as well as other financial implications. 


Most importantly, a high "Rate of Change" may indicate a lack of proper management, asset security and a less than desirable return on investment. The "Rate of Change" calculation is one of the best ways for dealers and parts managers to "police" the parts inventory investment as well as maintaining a low discrepancy percentage when it comes time to perform the physical inventory.

Change is on going and inevitable, especially in our parts departments, we just need to manage and control this constant change in order to maximize the investment and profits. So?....What's Your Parts Inventory "Rate of Change"?   


  Dave Piecuch is the Vice President of Automotive Consultants Group Inc. and is the Head Coach for Smart PartsTM.  Dave can be reached at Cell 786-521-1720 or E-mail at dsp0417@aol.com Vist our Website at www.smartpartstraining.com

Hope OR Change...We Have to Make a Decision!

Last month, I talked about January 2012 being "A New Beginning" for Parts Managers, or what I referred to as "Net Zero" Time. This month, I want to talk about "Hope OR Change"...that's right!...Hope OR Change! I know that we are in an election year here in the United States and I'm not here to particularly endorse any candidate or party, but as I thought about it...Hope AND Change just don't go together.

Let me explain further, I was thinking last month about the new beginning and how much January really impacts the whole year ahead. As Parts Managers, we attain valuable new information on trends such as gross and true turns, first time off shelf fill rates, parts sales activity and so on.

There is no month like January to make changes or modifications to major parts inventory Set Ups & Controls. These changes we made in January will be noticeable on February 1, 2012 in our Inventory Management System (I.M.S.) Parts Monthly Analysis Report and our Sales, Gross and Net numbers realized when the first Financial is released somewhere around the 10th of February.

Here's where "Hope OR Change" comes into play. If the changes or modifications we made in January do not meet our expectations then what do we do? Do we "Hope" that these numbers will get better next month? Do we "Hope" that the changes and modifications that we made last month will be different?

Or, do we review the information, learn from what these changes or modifications made in January and "Change" the parameters with some more "tweaking" in the right direction. That's what it's all about!...it's not just the physical act of running reports and reviewing them, it's what we DO with the information and move ahead to making more "Changes".

Having a successful plan in 2012 must involve three key ingredients which are; Evaluation, Planning and Execution. I've seen many successful Dealer Managers in all departments take the first two (Evaluation, Planning) very seriously, but they don't carry it through to the Execution part which is the most important. It's the most important because it requires the "Expected Results" our Dealers and GM's are looking for.

The Execution part also requires constant "Change" moving forward, not just the"Hope" that things will happen to achieve the desired result. Many of you have may have heard the the phrase: "There are only three types of people: "Those who "WATCH" what happens, Those who "WONDER" what happened and finally, Those who MAKE things happen"! I'm not sure who the author of this phrase is, but it's so true and everyone of us should ask ourselves which one of these three best fits who we are as managers.

The most successfully run Parts Departments are managed by people with these basic core principles. Making adjustments in our Set Ups & Controls is on going and never ending. I'm not talking about simple adjustments on inventory amounts or bin locations which occur on a daily basis. I'm referring to changes and modifications to Phase-In/Phase-Out Criteria, Days Supply, Pricing Escalations and Source Ranking, just to name a few.

 Although, I would recommend that any changes or modifications be done to one part or one source at a time in order to see if the results meet the expectation. Changes or modifications to a single part number, source or pricing base will reveal immediate results to review and most importantly, if the results don't meet expectation, it's much easier to go back to correct or make new modifications.

This is why "Hope AND Change" don't go together in my opinion. Of course, we can "Hope" the changes and modifications we made in January will lead us to the expected results at the end of month, but there again, we should know what the results will be as we monitor these changes throughout the month. If we don't see the expected results, we have to make a "Change" or modification.

Not only is this true about the changes and modifications we make as Parts Managers to our Set Ups & Controls, it is also true in how we manage all the aspects of our roles as department managers. Areas including personnel management, expense management and forecasting future growth, they should all follow this same philosophy; Evaluate, Plan & Execute.

If we all know that "Change" is inevitable, let's embrace it and expect it. Let it be part of "what we do" as managers to achieve our goals that lead to "desired results". Let's not just "Hope, Wonder & Watch" what happens, let's "Make" things happen by doing something with the information provided in our reporting systems.

Lastly, February is here...did the "Changes" or modifications lead to desired results? What did you do with information provided in in your January Parts Monthly Analysis Report? What worked and what didn't? These are just a few questions to ask yourself, then after this Evaluation?...Make your Plan and then, Execute your plan.

Don't put "Hope and Change" together...make a decision because "Change" will always lead you forward to desired results and if the proper changes are made, desired results will be achieved and expected, not just  "Hoped" for.

Dave Piecuch is the Vice President of Automotive Consultants Group Inc. and is the Head Coach for Smart PartsTM.  Dave can be reached at Cell 786-521-1720 or E-mail at dsp0417@aol.com Vist our Website at www.smartpartstraining.com