Parts’ stocking – The right parts at the right time

The supermarket industry has many “drivers” that determine success and failure but there is one driver which, if you get wrong, will certainly lead to failure. That is stock management and more precisely having what consumers want when they want it.

Donald Christy 2

Having the right stock at the right time means that you will, in all likelihood, sell it and receive payment for it before you pay the supplier. You can, however, only do this if you purchase stock that the consumer wants and that is on the shelf when the consumer needs it.

If you buy stock today and sell it to the consumer tomorrow, you generate cash immediately and only pay your supplier 30 days from statement. Besides the too obvious cash flow benefits of this, you are generating high margin gross profit on the part and in many instances on the labour related to the sale of that part.

In my experience, whilst obsolescence in parts departments is being more actively managed, the measurement and management of having the right stock at the right time are loosely managed or not managed at all. The opportunity cost of this lack of measurement and management is almost always way more than the cost of obsolescence in most dealers.

Most Dealer Management Systems have advanced stock management features that can give you these measurements in various ways. They do, however, require to be set up and managed. Our dealer group benefited hugely from investing time and effort into this element of our dealerships. I can only suggest that it would be in your interest to do so as well.

Would you shop at your chosen grocery store if it did not stock most of what you wanted?

  • Dealerfloor ( and I will be publishing regular articles on dealership efficiency. I am really looking forward to sharing ideas with you. Join the conversation by sending a WhatsApp to 082-776-1887 to be added to our group.

More Dealer News stories

Success part of GWM Alpina Springs repertoire

Success part of GWM Alpina Springs repertoire

A veteran in the automotive world with a proven track record over many decades is at the heart of GWM/HAVAL Springs’ success in the latest Dealer of the Year contest for the Chinese vehicle brand.

  • 12 April 2024
Stellantis expands offering with CFAO Mobility, Westvaal

Stellantis expands offering with CFAO Mobility, Westvaal

Stellantis continues its drive to make brands easily accessible to customers through its multi-franchise dealer network with the addition of Jeep and Fait brands to Williams Hunt Fourways in Johannesburg, part of CFAO Mobility, and the same addition applies to the Westvaal Motor Group in Menlyn, Pretoria.

  • 10 April 2024
BMW Midrand DP tells us how it’s done

BMW Midrand DP tells us how it’s done

BMW Midrand won the much sought-after Retailer of the Year award for the first time in 2021, and on the MINI side it has been awarded the top retailer title twice consecutively, in 2018 and 2019. Now the dealership has won both brands' top award for 2023.

  • 9 April 2024