Case study: Parts manager runs a tight ship, but profits keep dropping The parts department at an established Mazda dealership in eastern Pennsylvania, by all accounts, is well managed and gets positive feedback from employees and customers alike. The dealership is blessed with a wealth of parts management experience. In addition to the current parts manager, both the service manager and general manger have parts management backgrounds. And yet, the last several years have seen parts department net profits steadily decline.
Get proactive with parts inventory management! Ordering the right quantity of parts is perhaps the most difficult responsibility of dealership parts managers. Make a mistake and you can severely impact dealership profits. Do it without a true understanding of your dealership's financial position or adequate purchasing controls and it could spiral into an absolute nightmare.
RF scanners meet bar code systems to improve parts department efficiency At the Dealers Edge Parts Managers' Summit in Fort Lauderdale a couple of years ago, technology expert Frank Burrows ran through some of the high-tech ideas that were slowly being integrated into dealership parts operations. Among them was Frank's specialty, bar coding. Frank is a former parts manager with some of the biggest names in dealership parts and he now owns Automotive Business Solutions (www.absdata.com).