PartsEdge helps clear the shelves for what sells


According to the National Automobile Dealers Association, the service and parts department can account for nearly half of a dealership’s gross profit. But parts obsolescence can take a toll on those profits, said Kaylee Felio, PartsEdge sales and marketing manager.

She said every dealer will have some obsolescence, but it becomes a problem when more than 15 percent of the inventory has been on the shelves for 13 months or longer.

“They take up space on the shelf where you could be using that space for something that you’re selling a lot of,” Robins said.

The most common causes of obsolete parts is when a dealer overorders, doesn’t return parts on time or orders the wrong parts and can’t return them, Felio said. It can also become an issue if warranty parts are ordered for a customer who never gets the repair done. Dealers can’t have the customer prepay for warranty repairs and customers may feel less compelled to get the repair completed, she said.

Robins said he’d sell the unsold parts online for 50 cents on the dollar. Or he would write parts off that wouldn’t sell even at a large discount, he said.

PartsEdge, which has just over 200 new-car dealership clients, helps ensure parts departments have less invested, more of the right parts to sell and very minimal obsolete parts, Felio said.

“The goal is to have just enough parts to service the repairs you need,” while keeping a lean inventory, Felio said.

PartsEdge provides a better way to more precisely track inventory by breaking it into five categories:

1. Productive stock (stock that’s selling)

2. Excess stock (stock that exceeds the system’s best stocking level)

3. Forced stock (a part that is special ordered because of demand and wasn’t in stock)

4. Technical obsolescence (parts haven’t had a sale or been receipted into the system in seven to 12 months)

5. Obsolescence (the part hasn’t sold or been receipted into the system in 13 months).

Stay connected with us on social media platform for instant update click here to join our  Twitter, & Facebook

We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.

For all the latest Automobiles News Click Here 

Read original article here

Denial of responsibility! is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
Leave a comment