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Old 01-29-2008, 12:34 PM   #1
Rod Barajas
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Exclamation Rate your own parts department

How do you rate your own parts department on a scale of 1 to 10? Why?
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Old 02-01-2008, 07:17 PM   #2
rbuesinger
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Default Parts Department

I took over my Dealership a month ago and WOW. I never dreamed schedules and obsolescence could look so bad. Not only has it been operating on a less than efficient net to gross but was a serious victim of not paying attention before going on the RIM program. How about an obsolescence number of around $220K. Not just one year but over two years old. I'm working with my delco supplier and such but would like to know if anyone has a connection I haven't found besides "Bill Heard" at 50 cents on the dollar. I'd love to put that cash back in the business. There are GM and Jeep parts included.
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Old 02-02-2008, 09:57 AM   #3
SHACOS
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The obsolescence number is outrageous! Sounds like the previous Parts Manager wasn't penalized for having such a figure.
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Old 02-02-2008, 10:34 AM   #4
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Quote:
Originally Posted by rbuesinger View Post
I took over my Dealership a month ago and WOW. I never dreamed schedules and obsolescence could look so bad. Not only has it been operating on a less than efficient net to gross but was a serious victim of not paying attention before going on the RIM program. How about an obsolescence number of around $220K. Not just one year but over two years old. I'm working with my delco supplier and such but would like to know if anyone has a connection I haven't found besides "Bill Heard" at 50 cents on the dollar. I'd love to put that cash back in the business. There are GM and Jeep parts included.
Wow, $220K - what percentage is that of your total parts inventory?

This thread is exactly what I dreamed about when I wanted to start this Forum. There has to be a GM or Chrysler Dealer out there that has excessive return allowance that would love to do a "win-win" deal. And given that the marketplace's best offer seems to be 50% it appears that there's plenty of room to make a "win-win" deal.

Most of my background is Chrysler, but I do know of a large store that's dualed with GM. I'll call them on Monday and see if the Parts Manager that I used to know is still there and ask his opinion.

Thanks for the post - It would be great to convert $220K of obsolete parts into working capital that you could use to grow your business.

Please check back on Monday or Tuesday and I'll update this thread.
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Old 02-02-2008, 04:26 PM   #5
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Default Are the parts returnable?

Of the $220K do you know how much is still in the Parts Catalog as returnable?

Is there a Buy/Sell planned in the future where you could process a Parts Return? Could you "piggy-back" on another Dealership's Termination Return? (Not sure if that would be allowed - just a random thought )
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Old 02-03-2008, 07:25 AM   #6
rbuesinger
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Default Parts Department

Most is returnable but under the GM RIM program and some recent incentive returns there's not more that $1000 or so built up in a months time. Chrysler is much less. As far as buy-sell, when we build our new facility over the next 2 years we might have to do something with Jeep. That could include adding Chry/Dodge but I don't want to wait around for that. Maybe there's a buy-sell going on out there somewhere that could be a win win.
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Old 02-03-2008, 07:31 AM   #7
rbuesinger
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By the way...That $220K is about 50%. I've thought about sending mail bombs to previous regime who was responsible, but with out them I wouldn't have the opportunity to make this turn-around.
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Old 02-06-2008, 09:32 AM   #8
XDCX
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Default No easy answers.....

I checked with one of the Parts Managers that I used to know and asked his opinion about your parts inventory situation.

He agreed that you could use another dealer's return allowance but the process is more difficult than it appears. Given the length of time it takes to process a return, you really have to "trust" the other dealer.

One suggestion that he had was to "swap" your obsolete inventory with a terminated dealer's fresh inventory. As an example, if a neighboring dealer is going to terminate you would exchange $100K of your old inventory for $100K of his fresh inventory. As long as the $100K that you exchanged was returnable, it wouldn't be an issue for the terminating dealer.

The benefit of this solution is that you are never in a position where you have to trust that someone is going to write you a check. You simply exchange parts for parts. Additionally, since most terminating dealers are short-staffed after the store closes you may be able to find one that will give you favorable terms if you assist him with the termination return.

To the best of my knowledge, the inventory "swap" solution wouldn't violate any of the terms of the Manufacturer's policies regarding termination returns.

Hopefully someone can provide some other solutions.
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Old 09-23-2008, 07:20 PM   #9
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Quote:
Originally Posted by rbuesinger View Post
I took over my Dealership a month ago and WOW. I never dreamed schedules and obsolescence could look so bad. Not only has it been operating on a less than efficient net to gross but was a serious victim of not paying attention before going on the RIM program. How about an obsolescence number of around $220K. Not just one year but over two years old. I'm working with my delco supplier and such but would like to know if anyone has a connection I haven't found besides "Bill Heard" at 50 cents on the dollar. I'd love to put that cash back in the business. There are GM and Jeep parts included.
I JUST STARTED USEING A PARTS LOCATER CO. CALLED DEALERMINE.COM IF YOU WOULD LIKE I CAN GET YOU A PHONE NUMBER OF THE REP THAT I AM USEING SO FAR I HAVE SOLD ALOT OF GM PARTS YOU CAN LIST ANY CAR MAKE WITH THEM.
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Old 09-24-2008, 11:29 AM   #10
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Originally Posted by snake4448 View Post
I JUST STARTED USEING A PARTS LOCATER CO. CALLED DEALERMINE.COM IF YOU WOULD LIKE I CAN GET YOU A PHONE NUMBER OF THE REP THAT I AM USEING SO FAR I HAVE SOLD ALOT OF GM PARTS YOU CAN LIST ANY CAR MAKE WITH THEM.
Welcome to DealershipForum.com

Thanks for the comments - I'm pleased to hear that you've found a good solution for finding parts and selling obsolete inventory.

Here's a link to Dealermine.com - http://dealermine.com/Default.aspx

I checked the site out and was impressed that one of the founders was the creator of PartsVoice - I remember using that service year's ago. Back then it was "state of the art."
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Old 09-24-2008, 11:32 AM   #11
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Quote:
Originally Posted by rbuesinger View Post
I took over my Dealership a month ago and WOW. I never dreamed schedules and obsolescence could look so bad. Not only has it been operating on a less than efficient net to gross but was a serious victim of not paying attention before going on the RIM program. How about an obsolescence number of around $220K. Not just one year but over two years old. I'm working with my delco supplier and such but would like to know if anyone has a connection I haven't found besides "Bill Heard" at 50 cents on the dollar. I'd love to put that cash back in the business. There are GM and Jeep parts included.
Wow, based on the most recent news reports you may have the ability to buy the Bill Heard inventory at 50 cents on the dollar.

Here's a link to the most recent news report concerning Bill Heard's Dealerships: http://www.ledger-enquirer.com/292/story/449483.html
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Old 08-01-2010, 09:36 PM   #12
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I used to think my department was a 9....ok...8.5

But recently, since I got stuck in a little office, I have discovered I've become my predecessor. When I came to this store 20 yrs ago, the place was a freaking disaster. 800k Obs..and most of that wasn't 12 mns, most it was over 24 mns! And the storage was asbymal. The dealership burned in the mid '70s and most of the shelving had been taken out back, washed off and painted over... some of the parts on those shelves were melted inside the boxes and put back on the shelf after the cleanup was over. The layout was all wrong....and so on. For the most part, I fixed all that, and turned it around in 3 yrs. My 3rd year there and my 1st as parts Manager, we made a profit.

Fast forward to now. I'm stuck in an office doing paperwork most of the day (with the increases in parts sales and service business, the paperwork never ends!), and a lot of things I want to do aren't getting done. On Saturday, I worked on set-up parts. You know, the new stuff RIM adds daily, the stuff I add, and the stuff that is either misordered or not picked up. I have about 4 grocery carts full (but alas, only one grocery cart!!). It's not a huge task, but one that has been overlooked for 2 months. And it made me feel like the guy I replaced - he was coasting, and just didn't care.

I'd still rate my department a 6, but I'm about to kick my own ass and get it back up to what I'd consider an 8.5 again.
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