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.
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?
Heinie Boshoff’s (main photo) automotive career turned a full circle when he became the co-owner and a director of the Benba Motor Group in the Western Cape a couple of years ago. And he has never looked back after taking an opportunity presented to him after school and making the most of it.
JAECOO’s new J5, which was revealed at the 2024 OMODA & JAECOO International User Summit in Wuhu, China, this October will soon be in South Africa.
Suzuki is focused on providing its customers with an unrivalled experience on coastal and inland waterways.
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Have you ever noticed that anybody driving slower than you is an idiot, and anyone going faster than you is a maniac?
George Carlin
Heinie Boshoff’s (main photo) automotive career turned a full circle when he became the co-owner and a director of the Benba Motor Group in the Western Cape a couple of years ago. And he has never looked back after taking an opportunity presented to him after school and making the most of it.
Here are a few basic ideas that should have a positive impact on gross profit (GP). Most of you are familiar with them but knowing them does not mean they are effectively applied. These are areas that I believe should form part of your daily, weekly or monthly reviews.
We are all excited about our new brand we added to our multi-franchise dealership. The new Suzuki dealership will definitely have a huge and positive impact on business.
