The average new-car dealership carries a $350,000 investment in automobile parts, with parts managers earning more than $75,000 annually. Most dealerships use a computer program to track, bill, and analyze parts inventory—yet the National Automobile Dealers Association (NADA) reports that the average parts inventory is 65% or more inaccurate or inactive. So, we really have between $227,500 and $625,000 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 essential to the continued success of any new-car dealership’s fixed operations. 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. Our count staff and supervision are our responsibility; the liability of having non-dealership personnel perform your count rests with us. We have performed physical inventories in the Southwest for over 30 years. Our strategic pricing structure reveals 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.
Free up idle capital—know exactly what you have and 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.