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Auto Parts Physical Inventories information

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Why Do I Need to Perform an Annual Physical Parts Inventory?
Who Should Conduct a Physical Parts Inventory?

Our average new car dealership carries a $250,000 investment in automobile parts. Our average parts manager receives over $50,000 in annual compensation. Our average new car dealership has a computer program that tracks, bills and analyzes parts inventory; yet the National Association of Automobile Dealers (NADA) reports that any given, average parts inventory is 65 percent or more inaccurate. So, we really have between $163,000 and $415,000 invested in parts inventory? How can we possibly sell the parts on the shelf? This is the reality of parts inventory management in a new car dealership.

An annual physical parts inventory is necessary to the continued success of any new car dealer fixed operation. A reputable, third party service should be chosen to perform this important task. Parts managers are constantly chasing good inventory mix and obsolescence reduction, but this is a futile effort if the records they are chasing are simply wrong. You cannot sell a part if you do not know you have it or do not know where to find it.

Mitchell Inventory Service is licensed, bonded, and insured. The count staff and supervision is our responsibility; the liability of having non-dealership employees counting your inventory is in our hands. We have performed physical inventories in the Southwest for over 30 years. Our strategic pricing structure rivals the true cost of hiring your own employees to count your inventory. We efficiently and effectively record all inventory housed in your parts department. We give you an accurate, easy to understand synopsis of your parts inventory dollar value. We update your computer system to reflect actual parts in their correct locations.

You can now free idle capital; you know what you have and you know where to find it. Your accountant knows exactly where we derive your inventory balance and can effectively make tax, booking and investment recommendations. You now have a reliable job performance rating tool for your parts manager. You now have control of the real dollars invested in parts inventory.