The Universal Problem
The same parts inventory issues can be found in dealerships across the world: excess amount of stock sitting on the shelf, a high % of fast moving stock, poor fill rates, Parts Managers wondering what they’re going to purchase, and a lot of money tied up in spare parts.
However, we’ve finally found a solution to these universal problems in PartsEye, an online inventory planning tool, that uses a unique planning formula to calculate a suggested stock order based on actual results.
Already widely used across the United States, the parts inventory software has now made its way to the rest of the world for Dealers and OEM’s alike to enjoy the enormous range of benefits: accurate inventory forecasting, reduced part expenses, maximised part sales, higher fill rates, reduced part obsolescence, improved workshop sales, full visibility on demand as well as sales activity, and more.
How Does It Work?
Much like a household shopping list, PartsEye calculates what has been taken out of the pantry, builds a formula on what needs to be restocked, and provides that in a list to the Dealer to submit to the Factory. Through an online screen available from anywhere, Dealers can access the “Suggested Order Screen” to order recommended parts on a daily, weekly, or monthly basis. The suggested order is built on actual sales and pre-set parameters with the OEM and is tweaked by the Dealer before finalising. Once submitted, the order goes automatically through to the Factory as well as the Dealer’s DMS.
Parts Inventory Software with a Parts Sales Guarantee
Dealers always have full control and flexibility to adjust the stock order – add additional items or up the quantity – when needed. However, the calculated formula is so accurate that there is a Buy Back scheme in place to ensure the parts inventory software even further.
In the current model, if those parts suggested by PartsEye don’t sell in a certain period of time, the Dealer can return the parts back to the Factory at no charge.
From the manufacturer’s perspective, statistics have shown that 97% of parts returned from Dealers are able to be on-sold to other Dealers within 3 months and 99% of those parts were on-sold within 12 months - leaving only a 1% risk for parts not selling. The Parts Sales Guarantee is just another way of taking parts from a Dealer who isn’t selling them, and providing them to a Dealer who can.
Parts Inventory Software That Benefits the OEM, Dealer, and Customer
It’s rare that a tool so obviously benefits all key parties involved in the automotive cycle however, PartsEye rewards the OEM, Dealer and End Customer alike.
To the OEM, PartsEye creates a consistent system for dealer part replenishment, provides full visibility on part purchases and sales, broadens the breadth of dealer stock holdings, and provides the ability to easily phase in and out parts.
To the Dealer, PartsEye minimises capital expenditure on parts, maximises part sales through higher turnover/fill rates, maximises local warehouse facilities and reduces parts obsolescence.
And finally at the end of the day, the parts inventory software is fundamentally a customer service tool. It ensures the right parts are on the shelf when the customer needs to buy them or the dealer technician needs a part for a vehicle in the workshop. PartsEye has dramatically increased the overall customer experience / satisfaction and led to inevitably higher CSI ratings.
Before and After, PartsEye
This before and after graph puts the benefits into better perspective. PartsEye makes it possible to put more sellable items on the shelf in the Dealership without having to invest more money – instead, based on what items are moving and what items the Dealer will actually need. The key to safely reducing dealer excess investments in fast moving parts while increasing part number coverage is to change the mix of parts over time. Broaden the amount of repair parts to keep on the shelf (yellow), reduce the fast moving parts (blue), increase accessories (purple), and over time, reduce obsolescence (red).
Less of a Software, More of a Service
Day one of implementing PartsEye will not provide instant results… it’s a learned evolution, which is why PartsEye is moreso a parts inventory service, rather than just software. We gradually change the overview of the parts department by changing the behaviour of the parts manager and the dealership at the same time; an evolution of ordering behaviour.
In addition, PartsEye has quite an extensive range of reports that are provided to OEM’s and Dealers every month to show key performance indicators and track performance and measurement. Additionally, specialised consultants work regularly with the Dealers and OEMs to perfect parameters, usage, phase in and phase out of parts, new models lines etc.
A Taste of Success
Results seen across the US region after implementing PartsEye have exceeded expectations. The specific franchise’s results below, three years post implementation, shows that average dealer inventory turn-over rates more than doubled, an average decrease of 87% in aged inventory, and a significant average increase in fill rates to above 80%. An important statistic to note is the final one: %net utilisation, which shows an increased confidence and trust in the PartsEye suggested orders overtime.
