Manager support key to keep on top of parts

Parts managers struggling with inventory issues may find help in a new e-book published by PartsEdge, a leading parts sourcing and management software provider.

How To Identify Issues in Your Parts Inventory offers advice on how to improve inventory turns and fill rate percentages. The e-book, the sixth from the company, provides managers a formula for calculating those metrics.

Another tip in the book centers on the dealership management system, which is vital to parts operations. If DMS settings are incorrect, fill rates and profits will suffer. The book suggests parts managers conduct regular DMS reviews to ensure the settings are up to date and make any necessary adjustments before inventory performance issues arise.

Kaylee Felio, 29, sales and marketing manager at PartsEdge, spoke with News Editor Dan Shine about other challenges in the parts department. Here are edited excerpts.

Q: What are some of the biggest challenges parts managers face?

A: Managing the DMS, navigating complex manufacturer programs and guidelines, online sales, combating parts shortages, and the time commitment to properly train and retain employees.

With this tight labor market and some dealerships short-staffed, how can management best support their parts managers?

Streamline your parts manager's day-to-day tasks with process-optimizing technology to create more time opportunities for proactive working. Compounded with the struggle to fill positions, we often see too many moving parts and an inability to work proactively due to the complexities of running a parts operation.

Dealership management teams from thriving operations and underperforming ones alike should look to first identify areas of weakness and potential growth with their parts managers and then implement process-optimizing technology that best supports them and the overall bottom line. Oftentimes, parts can drive profits for the entire dealership if we give them the support they need and simply equip them with the right tools.

There's a disconnect between the way parts and dealership management see inventory issues. How can it be corrected?

Managers of parts inventory have historically been trained to evaluate the effectiveness of their inventory solely on how individual parts sell. Upper management looks at parts inventory as a true investment, concerning themselves with when parts are both bought and sold.

This can be solved by having monthly inventory reviews between the managers to ensure everyone is on the same page and there are no surprises. The reviews between both parties can go a long way in clearing up any future fill rate headaches and bad information housed within the DMS.

How can managers engage the parts team and help them succeed?

In our experience, parts managers are underappreciated. While they are responsible for the second-largest cash investment the dealership can make, they are often overwhelmed with day-to-day tasks. As a result, parts inventory health falls by the wayside.

Valuing your parts leaders enough to listen and help identify problem areas and then giving them the tools to succeed are key for these valuable employees' long-term support and happiness.