Process Efficiency Leads to Profits
If your dealership’s strategy for tackling the new normal today is to adopt short-term or one-off practices designed to save your business, then Dealertrack DMS Performance Manager Mike Panozzo has bad news for you. In his recent webinar series (which you can watch on-demand here), Mike shared his tips and best-practices for optimizing your parts processes. While Mike dives deep into six actionable steps you can take right now, the big picture looks like this: what you do everyday matters most.
We won’t give everything Mike shares away before you have a chance to watch the recording. But here are a few general tips and takeaways.
Don’t save it all for the end.
When it comes to perpetual parts, Mike stresses the importance of changing this annual process to a quarterly, or even more frequent, process. Count your inventory four, five times per year. This eases your end-of-year burden, frees up time and inventory, and should be a standardized process. The more frequently your team does this, the less errors you’re likely to make. And, you won’t have to re-familiarize yourself with the process every time due to a large time-gap.
It goes without saying, but…
Those “monthly” reconciliations should be…monthly. Yet, the fact that this comes up with partners so often is testament to how frequently this process gets back-burnered. Monthly reconciliations help your team identify errors earlier. You’ll also identify variances sooner—positive or negative—to help you keep track of your goals. You can’t manage what you don’t measure, after all.
Start making your special order process review a part of your standard daily tasks. If relieving your inventory earns your dealership more money, then you must be consistent about your processes. It’s that simple. Build a Standard Operating Procedure (SOP) that your team adheres to if that helps.
Mike’s experience in the automotive industry gives him both a macro and micro lens-view of the steps that impact your business. Though today’s challenges feel unique, they likely won’t be the last storm the industry goes through. The steps you take today to build consistency, measurable efficiency, and time-saving strategy will help your parts processes in today’s new normal, and beyond.
Watch the webinar recording below or on the Dealertrack Business Continuity Tools & Resources Hub.
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