Mike Bachara: Keeping the Parts Inventory Organized

https://youtube.com/watch?v=cj90OEJCblI

Mike Bachara is the Owner and President of Pro Count West, an Automotive Company specializing in Parts Department Inventories, Consulting, Termination Returns and overall improvement to Parts Department Operations in new car dealerships

In this episode of the Parts Girl Podcast, Kaylee Felio sits down with inventory management expert Mike Bachara to delve into the intricacies and importance of inventory management in the dealership setting. Accurate inventory management is crucial for the success of any dealership. From keeping track of parts on the shelves to avoiding costly errors and ensuring customer satisfaction, the parts department plays a significant role in maximizing return on investment. 

Monthly Reconciliations for Accuracy

To ensure accurate accounting figures and maintain proper stocking levels, monthly reconciliations are essential. By regularly tracking and reconciling inventory, dealerships can pinpoint discrepancies and address them promptly. This leads to increased productivity in the shop and avoids wasted time and money for technicians and customers.

Special Order Parts and Tracking Systems

Special order parts can often be a source of inventory discrepancies. Having an effective system in place to track and manage these orders is crucial. Bachara recommends monthly counting of special order parts to catch any errors and discrepancies early on. This not only prevents customer dissatisfaction but also ensures accurate accounting figures.

Leveraging Outside Expertise for Physical Inventories

Many dealerships struggle with conducting thorough physical inventory checks themselves. Hiring an outside company, experienced in inventory management, can bring valuable expertise to ensure accurate figures and prevent missed inventory items. By partnering with such companies, dealerships can save time, resources, and have confidence in the accuracy of their inventory numbers.

Accurate inventory management is vital in maximizing return on investment for dealerships. Monthly reconciliations, efficient tracking systems for special order parts, and leveraging outside expertise for physical inventory checks are all key strategies for achieving this goal. By implementing these practices, dealerships can improve productivity, minimize errors, and keep customer satisfaction high.

Takeaways

  1. Have a regular physical inventory.
  2. Prepare your inventory first before doing physical.
  3. Having discrepancies in inventory can be costly.

Quote

“Get your inventory prepared for a physical because that’s the way you’re gonna get the most accurate count.” –Mike Bachara

Connect

Mike Bachara

LinkedIn: www.linkedin.com/in/mike-bachara-141bb51a

Website: www.procountwest.com

Kaylee Felio

LinkedIn: www.linkedin.com/in/gotopartsgirl

Website: www.partsedge.com

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Understanding your fill rate

As a Parts Manager, optimizing your fill rate is crucial for maintaining customer satisfaction and maximizing profitability. While the traditional measure of fill rate can be misleading, focusing on off-the-shelf performance or job fill provides a more accurate picture. In this post, we will explore the significance of fill rate and provide actionable tips to help you improve it effectively.

Understanding fill rate

The challenge with relying solely on fill rate is that it can be easily manipulated based on how parts are receipted into your inventory system. Different dealerships with varying wholesale, retail, and warranty mixes will yield different fill rate figures. To obtain a more reliable measurement, it is essential to consider the off-the-shelf level of performance or job fill. This metric takes into account the unique characteristics of your dealership and provides a clearer understanding of your inventory’s ability to meet customer demands.

The impact of phase-in and phase-out criteria 

In our industry, managing a reactive retail inventory with a vast range of part numbers is the norm. The way you establish your phase-in and phase-out criteria plays a pivotal role in inventory performance. If these criteria are set too strictly, your fill rate may suffer, while setting them too loosely can result in excess inventory. The key is to align your criteria with the goal of fulfilling true demand, regardless of its source. Striking the right balance will contribute to improved fill rates and optimized inventory levels.

Setting realistic goals: The 90-95% fill rate

To provide exceptional off-the-shelf service to your customers, aim for a fill rate of 90 to 95 percent as a long-term goal. This target ensures that the majority of customer orders can be fulfilled promptly, enhancing customer satisfaction and loyalty. However, it’s important to note that achieving and maintaining this level of fill rate requires a comprehensive approach that involves analyzing and optimizing various aspects of your inventory management processes.

How to improve your fill rate

To enhance your fill rate effectively, consider implementing the following strategies: 

  1. Evaluate phase-in/phase-out guides: Review and fine-tune your phase-in and phase-out criteria to strike a balance between meeting customer demands and preventing excess inventory. 
  2. Analyze days supply settings: Adjust your days’ supply settings based on historical data and demand patterns. Optimizing these settings ensures you maintain an adequate stock level without overstocking or running out of critical parts. 
  3. Monitor excess inventory: Regularly generate and analyze your excess inventory report. Identify slow-moving or obsolete parts and develop strategies to reduce excess stock, such as offering promotions or exploring alternative sales channels. 
  4. Track true demand: Develop a robust tracking system to accurately monitor true demand, regardless of its origin. Utilize historical sales data, customer feedback, and market trends to forecast demand and adjust your inventory accordingly.

Improving the fill rate is a vital objective for overall operation success. By focusing on off-the-shelf performance and implementing the suggested strategies, you can optimize inventory levels, enhance customer satisfaction, and boost profitability. Remember, achieving a 90% to 95% fill rate requires ongoing evaluation and adjustments to align with ever-changing customer demands.

PartsEdge’s one-of-a-kind service helps you analyze, optimize, and improve your inventory daily. Our expert team is dedicated to helping Parts and Service Managers improve their inventory health through custom setups, phase-in settings, and more. We save managers hundreds of hours each year by streamlining DMS management, sourcing setup, and inventory optimization. Our results speak for themselves with our clients seeing an average 20% reduction in total inventory, 15%+ less idle inventory, a 50% increase in ROI, and a 20% increase in parts sales. If you’re interested in utilizing our parts power tool, contact us today!

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Stan Mirzayev: Revolutionizing Ordering Car Parts

https://youtube.com/watch?v=SAYiNE0BV9c

Stan Mirzayev is the Co-Founder and CEO of Parts Pass, a company committed to revolutionize the customer experience through the power of technology, including AI, to streamline the process of purchasing auto parts.

In this episode of the Parts Girl podcast, Kaylee Felio sits down with Stan Mirzayev to discuss his innovative app that is revolutionizing the car parts industry. Parts Pass is a free mobile app that simplifies the process of ordering car parts by integrating artificial intelligence and user-friendly features. Whether you are a car enthusiast or a regular driver, this app will make your life easier when it comes to getting the right parts for your vehicle.

A Game-Changer: The App’s Three-Step Process

Parts Pass employs a straightforward three-step method. Just snap a picture of your car or input its year, make, and model. You’ll then receive a detailed list of parts, with pricing, manufacturer notes, and warranty info. It’s akin to having a personal car repair assistant at your fingertips.

Setting Parts Pass Apart: User Feedback and Improvement

What differentiates Parts Pass is its dedication to user feedback and ongoing refinement. Stan values an MVP (Minimum Viable Product) and openness to feedback, even if it invites criticism. This strategy helps tailor the app to users’ needs, assuring the best experience.

More Than Functionality: The Power of a Positive Mindset

But it’s not all about the app’s functionality. Stan also highlights maintaining a positive mindset. Self-talk and belief in the phrase “this too shall pass,” help him cope with tough situations and find joy in positive moments.

The Solution to Your Auto Parts Search

Are you tired of the tedious search for the right car parts? The Parts Pass app could be your simpler solution. Join us on the Parts Girl Podcast as we delve into Parts Pass’s world, its easy-to-use features, and the strength of a positive mindset in entrepreneurship.

Takeaways

  1. Give value to your customers.
  2. Great entrepreneurs thrive in chaos.
  3. Customer feedback gives opportunity for growth in your business.

Quote

“We really strive to listen to the users, and adapt and change really quickly.” –Stan Mirzayev

Connect

Stan Mirzayev

LinkedIn: www.linkedin.com/in/stan-mirzayev-14028970

Website: www.partspass.app

Kaylee Felio

LinkedIn: www.linkedin.com/in/gotopartsgirl

Website: www.partsedge.com

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Bill Springer: The Importance of a Successful Tire Business Strategy

https://youtube.com/watch?v=ddRi5rtMRsk

Bill Springer is a seasoned automotive professional with over 35 years of experience in the industry. He started his career in commercial lending after college, but eventually found his way to Krex, a family-owned automotive business. Despite receiving his MBA, Bill Springer fell in love with the business and has been with Krex ever since. Over the years, the company has undergone significant changes and today operates in a very different space than when he first started.

Building Trust in the Car Dealership Industry

In this Parts Girl podcast episode, Kaylee Felio talks to Bill Springer, the CEO and President of DriveSure. They discussed the importance of trust in the car dealership industry, lessons learned from the automotive business, maintaining work-life balance, and more. Bill Springer shares his insights on utilizing strategic solutions to improve retention rates, especially in the tire business, and building long-term trust with dealerships.

Importance of Relationships in Business

A key lesson from the conversation is the role trust plays in the car dealership industry. Bill highlights the vital importance of relationships in business. He shares that cultivating trust can lead to positive word-of-mouth, helping expand a dealership’s customer base.

Retention Strategies and Their Impact

Bill Springer sheds light on how strategic solutions impact a dealership’s financial health, especially when it comes to 12-month retention rates. He cites the tire business, a significant cause of customer defection, suggesting dealerships need to focus on retaining tire customers and executing this strategy well to succeed in customer retention overall.

The Value of Humility

To wrap up the conversation, Bill underscores the merit of humility. He points out that maintaining a humble approach allows you to absorb more from others and keeps you receptive to fresh ideas and viewpoints. All in all, the episode offers valuable takeaways about building trust, utilizing strategic solutions, and nurturing humility in the automotive business.

Takeaways

  1. Dealerships are the best source of car tires.
  2. Building trust is crucial in the car dealership
  3. Effective communication among leadership teams are essential.

Quote

“Car dealerships are really the best source for new tires.” –Bill Springer

Connect

Bill Springer

LinkedIn: www.linkedin.com/in/wgspringer

Website: www.drivesure.com

Kaylee Felio

LinkedIn: www.linkedin.com/in/gotopartsgirl

Website: www.partsedge.com

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