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Old 03-30-2014, 11:36 PM   #16
gldunlap
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I'm always looking for old obsolete parts inventory. Must get the "good" or not as bad with the bad and of course cheap usually 10-20% depending on quantity quality and location. I cannot take equipment racks machine etc. just parts. Please email at gldunlap@comcast.net if you have decent parts to move.
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Old 04-03-2014, 02:45 PM   #17
TORGY
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i inherited an obsolete inventory and what we have done is use a "parts broker", They will download your inventory to buyers and you sell those parts @ 50% off. It sucks but if you want some return on the investment this is one way the recover a portion of it.

good luck.
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Old 12-29-2016, 08:24 AM   #18
PPIERCE
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Default Help!!

what is the option 2 (terminated plan) used for? We just bought a Chevy Dealership and I was told we could do a 1 time buy/sell for as many parts as I want to send back....is this true?? Any direction would be helpful...
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Old 12-30-2016, 02:43 PM   #19
DealerEx
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Quote:
Originally Posted by PPIERCE View Post
what is the option 2 (terminated plan) used for? We just bought a Chevy Dealership and I was told we could do a 1 time buy/sell for as many parts as I want to send back....is this true?? Any direction would be helpful...
It has been quite awhile since I did a parts return with GM after the purchase of a Chevy store in 1986, and again when I sold my DCJ store in 2005. In both cases we had to spend a considerable amount of time researching every part number to see if it was current or had been superseded by a newer part number at that time. While in theory, you CAN send back as many parts as you wish...in practical terms they will probably not accept a good percentage of the items if the inventory has some age on it. The part number has to be current or superseded within a certain time frame or it will be rejected. It has to be in it's original packaging as it came from GM with the correct part number shown on the Pkg. or it will be rejected. The package cannot be damaged beyond normal shelf wear ( if an end flap on the box is torn, they can reject it. If it originally came in a sealed plastic bag and the bag has been torn or cut open they can reject it, and so on. I doubt that any of the manufacturers have become MORE generous over the last 40 years given what I witnessed in 2009.
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Old 12-30-2016, 06:34 PM   #20
57years
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The additional thought you need an answer to is, " if I send the part back for credit, and they reject it, do they return it to me and charge me shipping or can I tell them to scrap it?"

If it is junk on the shelf, and they will scrap it, then it might be worth the paperwork effort to ship and see if the part sticks. R.E.M. re the parts center is manned by the UAW.
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Old 01-03-2017, 09:19 AM   #21
XDCX
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The additional thought you need an answer to is, " if I send the part back for credit, and they reject it, do they return it to me and charge me shipping or can I tell them to scrap it?"

If it is junk on the shelf, and they will scrap it, then it might be worth the paperwork effort to ship and see if the part sticks. R.E.M. re the parts center is manned by the UAW.
That's a great question.

A Parts Manager would definitely have to factor in the risk of having parts rejected if there was a fee/shipping expense associated with each returned part.

I wonder if many of the OEMs outsource the parts return process? I would have to think it would be very expensive to restock parts if the depot was using UAW labor to sort the returned parts.

Back in the old days at Chrysler I know they used depot employees to sort the returned parts and a lot of the parts were scrapped even though the dealer received credit for returning the part because it was cheaper for the depot to scrap the part than to pay the labor to restock the part on the shelf.

It was also rumored that the Depot Manager would have an employee follow the truck to the dump to ensure that the scrapped parts were destroyed and could not be re-use or re-sold.
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Old 01-26-2017, 02:04 PM   #22
bbdrew
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This is such a great thread and it sounds like we have parts managers and GM's/Dealers on here.

I'm of the thought that everyone is to blame for obsolete parts. Service dept, as was discussed. Parts manager, which is implied, but the GM's and dealers share in the blame. I've consulted at many dealerships and some just don't want to fire the guy, because he's been with them for 15 years, etc. No action = more obsolete parts.

Most of you GM's/Dealers are also so hands off with fixed operations, which is o.k. depending on the PM level of expertise.If you don't have a PM who has proven themselves time and time again, you can't treat them like a guy who has. You still have to oversee them and make sure they attain that level of management understanding where you can be hands off and not "baby sit". However, this doesn't mean tie their hands, so they can't fix the issues. Additionally, take a look at your hiring procedures. There are PM who are "fixers" and there are PM who can manage daily operations. If your dealership has a obsolete issue over 100K and a PM comes in for a job and they accept the national average salary/commission plan from 20 group, NADA, or Manufacture recommendation salary, you are most likely not getting a fixer. You are getting a guy who can do the job well and manage daily operations. If you want to get a "fixer" we cost substantially more and will have proven ourselves with other inventories, but your paying for that guy you don't have to "baby-sit". PM are like stock brokers. Yeah, you can get a cheap one, but your growth will be slower and you may lose some money along the way, or you can hire Warren Buffet and not worry about your money. The choice is yours, but don't cry when you have 100K obsolete parts, but kept your personnel expenses in line with what 20 group, NADA, or the manufacture wants them to be.
You want to fix your obsolete inventory hire a fixer. You want to be hands off with parts, hire a fixer or you can train one, but invest in their training and it will pay off.
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Old 01-28-2017, 09:51 AM   #23
mightytitan9
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I inherited a parts department that had roughly 60% of our inventory as idle. After 7 months on the job, we are down to roughly 50%.

I agree it's everybody's fault. We have greatly reduced our idle inventory by selling stuff at 50% off, using our return reserve (previous manager pocketed the money rather than returning) and most importantly, communicating with service to get their SOPs back into the service department to install the parts they ordered. In addition, there was a lot of parts ordered for internal vehicles that we would sell prior to putting on. We started a policy where we charge out all parts to internal vehicles once ordered.

It's a slow process, but it's part of the job.
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Old 03-10-2017, 08:43 AM   #24
zep33
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I'm with Toyota now who has a great return program but it still took a lot of work to get to this point.

Here's mine:
MNS less than 6 Months 90.31%
MNS between 6 - 12 Months 8.12%
MNS greater than 12 Months 1.57%
On File > 1 Year, MNS > 0.00%
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