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Presenter: Mike Nicholes of Nicholes Capital Management
Orginal Air Date: July 07, 2011
Program Length: 70 minutes
What numbers define superlative performance in parts inventory management and what are the best practices that help the “Best” be the “Best”.
It is absolutely no secret that parts inventory management is a complicated numbers and measurement game. More than any other profit center in a dealership, performance is measured by a complex set of data, statistics and calculations. Most of the performance ‘bench marks” employed in evaluating the parts department have been around for decades – but are they the right ones to define who is and is not doing a great job managing the inventory? According to Mike Nicholes, “For decades dealers have been using 'turn' and 'months of supply' to define the correct inventory; both are totally inaccurate and are only ratios that do not speak to the quality of the assortment of parts used to fill the need of technicians and customers.” Mike takes both an old and new look at parts inventory management benchmarks and will tell you how to define success in this important asset management position.