There are three types of Inventory. These definitions will help in your efforts to manage inventory and optimize profitability: A-B-C-D Inventory Control Still Works The old approach to classifying inventory by the way items are sold still works. However, we recommend 13 classes instead of 4 because this aids in determining stocking levels. With your… Continue reading Parts Inventory Control and Re-Order Optimization

The wise and skillful Parts Manager learns how to satisfy, simultaneously, the conflicting interests of his two primary constituents: dealer ownership and dealer customers. Customers demand high off-shelf fill rates which tend to increase inventory investment. Dealer Ownership demands high asset productivity. The challenge is to do both extremely well. The figure below illustrates how… Continue reading Value of Effective Parts Management

By now everyone on the planet is feeling the impact of supply chain disruptions. And, for the machinery dealer, this becomes both a problem as well as an opportunity. But, to survive, the dealer needs to strategically work around these challenges. The problem with manufacturers extending lead times from weeks to months, makes timely end-of-lifecycle… Continue reading Surviving the Supply Chain Crisis

It’s hard to think of an important aspect of dealer management that is more neglected than parts operations management training. Your Parts Manager can be responsible for warehouse security and safety, inventory control, picking, and shipping efficiency, prompt response to “back counter” service department requirements, parts warranty claims, parts marketing and sales, and an attractive… Continue reading Parts Management Operations Improvement

An incredibly useful tool to improve gross profit margins is the customer ranking report. This report is run for parts customers and separately for service customers. The annual customer purchase history was ranked by Gross Profit Margin Percent. Customer $ Parts Sales $ Gross Profit Gross ProfitMargin % Always show Gross Profit Margin to at… Continue reading Parts Margin Improvement Tools: Customer Ranking Reports

The following parts performance metrics are considered essential to managing a profitable parts business. Each analytical routine should be readily available from your software vendor. By monitoring these data points daily or weekly, your Parts Manager can take corrective action immediately, not at the end of the month. Again, why wait until statements are published… Continue reading Effective Parts Management– What to Measure and Monitor

Being digital refers to technology connections, integrations, and interactions between people, processes and data, functions, and products/services (things). Being digital is about gaining a visible edge in the war game with competitors to capture as much time, attention, and money from the marketplace as possible. This article explores some aspects of being digital. Being digital… Continue reading Being Digital: Plan, Move, Win!

Your Used Equipment Business Can Be Profitable If you have been losing money or just breaking even when you sell your used equipment now is the time to audit your operations. Selling trade-ins or former rentals can be a big profit challenge. If you have more than fifteen rental units that have either a poor… Continue reading How to Avoid 7 Deadly Sins in Used Equipment

I don’t know how much further Walt can take his guidance to our distribution channel and businesses, but I keep reading and learning. As soon as I start feeling too comfortable, the business evolves again and I better adjust or lose ground.John M. Vandy I carefully read through your latest release, “Service Management: The Machinery… Continue reading Industry Executive Reviews