A technician's ability to "spin a wrench" is directly related to the Parts Department's ability to provide IMMEDIATE off the shelf availability of parts. Fill Rate measures that. Fill Rate to the shop should reach at least 90% As off the shelf availability of parts goes up:
Technician Productivity and Efficiency Go Up
Profitability Goes Up
Loaner Car Days Go Down
Special Orders Decrease
Fixed Right, First Time Increases
Fill Rate of Parts to the Shop
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Frozen Capital
Frozen Capital are those parts that are not profitable for the dealership. They are a combination of Non-Stock (NS) coded parts and Auto Phase Out (AP) coded parts and should represent less than 5% of the dealership's total investment in parts inventory. Causes of high Frozen Capital include:
Poor Return Processes to the Manufacturer
Uncontrolled returns from Wholesale Accounts
Unmonitored returns from the Shop
Poor Special Order Controls
Days of Supply has been a measure of Parts Inventory performance for many years. However, this calculation contains parts that are not actually selling or are not longer in inventory:
Obsolescence
Unsold, Uninstalled Special Orders
Work In Process
Returns to the Manufacturer
Selling Days of Supply represents the value of inventory on the shelf that is actually selling. It is a more realistic measure of Parts Inventory performance.
Selling Days of Supply
Dealership CSI®, Economic Stocking Policy by Movement® and ESPM® are all registered trademarks of Dealership Consulting Services, Inc. All rights reserved. United States Patent and Trademark Office ser. no. 78,397,033, 78,397,051, and 78,397,066
