Are Your Parts in the Right Hands? - Part 2

by Anne Salemo

Second of a two-part series on determining if you have the right parts manager in your dealership.

Last week we talked about what qualities your parts manager should have in order to be trusted with the massive investment in parts inventory.  Now we'll review their objectives and responsibilities.

An Ideal Parts Manager will:

  1. Be the "point person" for the rest of the business.  Customers do more transactions in the parts department than any other.  Sales, service and rental departments also rely heavily on the parts department.
  2. Maintain a proper image.  Keeping the parts counter and displays clean and neat is imperative to ensure customers' first impression of the store is that of professionalism.
  3. Retain and train appropriate personal.
  4. Update and manage procedures that ensure consistent processing of transactions.
  5. Monitor parts performance: parts metrics such as shrinkage, fill percentages, turns, and contribution and gross margin percentages.  These metrics should be generated in a trend format from the business system for corrective action to be taken.
  6. Forecast and monitor financial performance. Parts managers should have access to the parts income statement and be involved in the parts budgeting process.
  7. Create parts marketing plans, including advertising and direct mail/email promotions that target revenue opportunities.  
  8. Overcome obstacles to growth.  Your parts manager needs to adapt and change as the dealership sales volume grows.

Do the above responsibilities and objectives fall in line with what you expect from your parts manager?

Download a free Parts Optimization Guide 



Filed under: Insider, Best Practice