What Does Success Look Like in Your Parts Department?

Chris Bavis

By Chris Bavis

Suc­cess demands that you have the right mix of parts right now. Ask your­self:

  • Are all need­ed parts imme­di­ate­ly available—or are your techs wait­ing for a part that’s not in stock? How often does it hap­pen?
  • Do you meet NADA’s Parts Depart­ment guide­lines?
  • Your First-Time Fill Rate (FTFR) should be 90 per­cent. That means that a tech­ni­cian gets every­thing he needs 90 per­cent of the time. That’s all the parts, not some of them, nine out of 10 times.
  • Parts man­agers should do on-the-spot sur­veys at the parts counter. When a tech comes to the counter ask­ing for parts, what per­cent­age is filled? If he asks for four parts and gets all four, that repair order gets 100 per­cent. The tech could fix the vehi­cle imme­di­ate­ly.
  • If the tech gets three out of the four request­ed parts, he can’t fix the vehi­cle. That RO doesn’t get 75 percent—it gets zero. The tech has to wait or find some­thing else to do. That’s time lost.
  • If your FTFR is below 90 per­cent, review how you’re phas­ing in parts and whether you’re mak­ing time­ly deci­sions.
  • It’s all about part num­bers.
  • Is your DMS being told about each part num­ber that is request­ed?
  • To achieve a good FTFR, you have to tell the DMS about every legit­i­mate part num­ber that’s asked for.
  • Make sure to enter all requests into the sys­tem. That way you can fol­low up on them to know what you didn’t have, what was a legit­i­mate demand, why the cus­tomer had to go else­where.
  • If the cus­tomer goes else­where, you’re los­ing busi­ness.
  • If you make a cost­ly emer­gency pur­chase of a part you should have had in stock, you lose gross.

Instruc­tor Chris Bavis teach­es Fixed Oper­a­tions Parts in week 2 of 6 in the NADA Acad­e­my pro­gram and can be reached at [email protected]. Call 800.557.6232 or vis­it www.nadauniversity.com/academy to down­load the sched­ule and appli­ca­tions for all pro­grams. Bavis will lead a week-long sem­i­nar on “Advanced Parts Man­age­ment” at NADA McLean head­quar­ters Oct, 15–19. Call 800.557.6232 or sign in to NADA Uni­ver­si­ty and reg­is­ter for the sem­i­nar in the NADA U Store.

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