In the spring of 2021, $150,000 of Scott Robins' $1.6 million parts inventory was considered obsolete — meaning it had been sitting in inventory for at least 13 months without being sold.
"The chances of those parts selling are pretty slim when they get to that age with no sales and orders," said Robins, parts manager at Weld County Garage Buick-GMC in Greeley, Colo.
Obsolescence is a costly monthly expense that drains revenues. To address the problem, Robins turned to parts inventory and management service provider PartsEdge. After using the service last year, his dealership reported a 96 percent reduction in non-Retail Inventory Management obsolete inventory and an overall reduction of 87 percent in obsolescence.
RIM is GM's dealer inventory program, meaning the automaker will buy back unsold parts. Other purchased parts, such as special orders, are not protected.