Page 33 - On The Move - 19.4

vent this from happening. Ask customers that order directly from the parts de-
partment to pre-pay for the part or pay a deposit. If the order is for the service
department, get confirmation from the service manager that the customer has
pre-scheduled an appointment to get the part installed. These actions show a
commitment by the customer that they intend to return for the part.

Another major cause of high obsolescence is poor inventory management prac-
Lauren Epler tices. To improve these practices, you need to take the guesswork out of parts
RevolutionParts stocking. Check manufacturer data on top-selling parts and use your DMS to
track trends within your department, going back as far as five years. Then, set
your strategy accordingly.

Finally, check with your OEM to see how long you have to return the unsold
SOP. Return the part to the OEM for full credit when you can, and you don’t have
to tie up your budget for longer than necessary.

How to Get Rid of Obsolescence

No matter your practices, you will always carry obsolete inventory, and no trans-
action record will be perfect. Parts get returned, the wrong parts get ordered,
ike most parts departments, you probably have a shelf in the and there will be customers who won’t show up for their appointments. When

Lback full of parts collecting dust with little chance of sell- obsolescence happens, you should have a plan to help unload that inventory.
The worst thing you can do is ignore it and let it continue sitting on the shelf.
ing. The average parts department has an obsolescence rate

of around 30%, which costs money. When parts don’t sell, you One of the best ways to get rid of obsolete parts, and get the best return, is by
selling those parts online. Adding online sales channels to your parts depart-
have cash tied up in those parts you cannot access. ment opens up your inventory to buyers everywhere. This can include selling
your inventory on online marketplaces like eBay and Amazon or on your own
parts web store.
If your parts department’s obsolescence rate is above 5%, find-

ing a way to offload more obsolete inventory should be a priori- eBay Motors is the go-to place for parts buyers to find niche parts. Dealers who
have mastered this art of selling on eBay often buy obsolete parts from other
ty. Ideally, you want to find a way to prevent new obsolescence dealers to sell the parts themselves. On the other hand, Amazon is the largest

from occurring and get rid of what you have without losing too online marketplace in the U.S. and another great option for selling new and ob-
solete parts to online buyers.
much money.
Additionally, you can sell obsolete inventory on your own parts web store. This
allows you to get those aging parts in front of millions of potential buyers na-
Prevent the Major Causes of Obsolescence tionwide and show up in online search results. Think back to the special order
parts scenario. After a customer places an order, they typically go online to see
To prevent obsolescence, you must first understand from where it is coming. if they can find it elsewhere. With a parts web store, you can capture these cus-
Once you know where your obsolete inventory is coming from, you can find tomers more easily.
ways to prevent it from happening.
Reducing obsolescence is a high priority in most parts departments. With the
Special order parts (SOP) are the leading cause of obsolescence for most parts right strategies in place, you can sell off obsolete parts (ideally for a profit) and
departments. If you don’t have parts in stock, customers have two options: or- prevent new obsolescence from happening.
der the parts and return to the dealership, or find the parts elsewhere (often
online). Often, a customer will order a part only to hang up and find the same No matter how big or small your parts department is, selling online can help you
part somewhere else, leaving you with an unsold SOP. increase parts sales and offload more obsolete inventory. To learn more about
how your parts department can begin selling online, visit RevolutionParts.com.

0
e 2
v
3
2
2
o
O
3 0 www .m a ad a. c om There are ways to pre- On The Move 2022 31 1
30 www.maada.com
he M
T
n