Lost Sales in Parts Manager Training

The value of recording lost sales should be included as a detailed discussion in your Parts Manager Training. 

Lost Sales = Lost Revenue. Recording Lost Sales is key to maximizing service throughput and overall availability. It is important that your RIM and/or DMS orders are based on true demand for parts you actually sold as well as parts you could have sold but were not on the shelf at the time of demand. When parts are not in stock at time of demand, and no special order was placed, or a non-OEM part was purchased to meet that demand, a Lost Sale should be entered into the DMS. Providing this data allows the DMS and RIM systems to include the sales within the replenishment calculations, giving you better stocking recommendations. Your DMS or RIM system will notify you when the part meets your demand criteria to become a stocked d part. Doing this consistently allows you to make better decisions based on the true total demand of each part. 

The benefits are: 

• More parts can be handed out immediately as they will be on your shelf 
• More sales are captured immediately 
• Gross profit is retained instead of losing it to competitors
• Less Parts Personnel time, energy, and effort spent chasing parts that should be on the shelf 
• Technician down time waiting for parts is highly reduced resulting in increased service throughput; increased labor and parts sales within the same period of time  

Lost Sale Defined: 

• Part is requested 
• Part is not available 
• Part is not special ordered or purchased from another source 
• Note: if price was the reason the part was not ordered or purchased, it is NOT a Lost Sale. 

Aftermarket Parts: 

• Sell the part under the aftermarket part number 
• Record a lost sale under the corresponding OEM part number 
• If the aftermarket part was purchased because it was cheaper than the OEM part, do not record a Lost Sale  

Additional Notes: 

• Record ALL Lost Sales regardless of make, model, year 
• Record ALL Lost Sales on Controlled and Non-Controlled parts 
• Record Lost Sales on inquiries from all sources (other dealers, wholesale accounts, retail, shop, etc.) 

Major reasons parts personnel do not record Lost Sales: 

• Not sure how a Lost Sale is defined 
• Don’t see the value 
• Too busy 
• Don’t know how to record Lost Sales via their DMS 
• Not part of their daily process/job description 
• Recording Lost Sales is not monitored by management – no feedback 

By Terry Miller and Ryan Forsyth
 

ADMI teaches and implements proven best practices that will keep the supporting processes front and center, so the sales process goes smoothly and efficiently. To learn more about lost sales in parts manager training or gain further insights, contact us today.