ADMI Inventory System (AIS) Turns Around a Struggling Automotive Parts Department
An automotive dealership Parts Manager was hired to increase parts-and-service profitability, but lacked experience with the brand’s parts catalog and the DMS. The department faced a series of challenges including:
- Reduced service throughput
- Idle capital growth
- Poor first-fill rates
- Claims not being filed
- Parts not being returned
- Increased outside purchases
- Stock orders not submitted daily
- Parts process/operations structure lacking
With a strong desire to improve department performance, the Parts Manager contacted ADMI, who deployed an on-site team to assess the challenges.
With a dealership team consisting of Executive Management, Parts Manager and Service Manager, the ADMI Inventory System was quickly implemented, beginning with one-on-one intensive training and performance monitoring. Using core AIS protocols, the team developed a new business plan that structured the Parts Manager’s daily, weekly and monthly activities and processes, including regular performance review assessments and collaborative action steps.
The Parts Manager was trained in utilizing the DMS fully for all parts operations processes including:
- Maximize service throughput via availability
- Claims filing and parts returns
- Shipping/receiving and.
- Review OEM performance dashboard to maximize OEM discounts
- Reduce legacy idle
Within 90 days:
- 43% improvement in First Fill (Service Effective Fill Rate)
- 3% increase in Stock SKU’s
- 5% increase in Stock Status breadth of “investment grade parts” that are selling
- 50% reduction in Monthly New Non-Stock Idle Growth (due to unsold special order parts resulting in increased parts sales and service labor sales)
- 338% increase in monthly OEM discounts from $1300 to $5700
The dealership’s Executive Management was very pleased with these results, while the Parts Manager stated that AIS had improved his quality of life and job satisfaction.