
Chery’s Lepas moves into premium SUV segment
Chery’s latest international brand, LEPAS, has reached a major milestone as its first model – the L8 – officially rolls off the production line.
- Industry News
- 25 April 2025
Parts obsolescence has been a subject that has plagued both dealers and OEMs since time immemorial. Unfortunately, it is still very evident today, despite most DMS systems providing processes and reports to manage it.
With the plethora of makes, models, specification variants and combinations, there are many more parts lines now than there have ever been. In the past, one engine could work for multiple models in the line-up but now each model can have multiple different engines depending on the specific spec of that particular vehicle within the model.
Added to this, there are so many models in SA where sales are single figures per model per month, so that it is difficult to know what to stock. Normal fast or medium movers for a volume model could well be obsolete for a model with lower volumes.
Most (95%+) of obsolescence DOES NOT come from stock orders (assuming that your stock orders are for parts that have the required movement to be stocked). Parts obsolescence should also not only be determined by the age of the part – often the day you buy the wrong part, but it is also obsolete.
Obsolete parts come from:
It is essential that dealership management ensures that these areas are reviewed regularly (some daily, some weekly) and that corrective action is taken immediately.
How much is acceptable obsolescence? Obsolescence that results from bona fide business risk is what I view as acceptable. If you decide to stock a slow-moving part in case an important customer needs it or you issue a credit on a slow-moving part because it is an important customer, or if it is totally out of your control – that is an example of a strategic or acceptable obsolescence.
Where obsolescence is as a result of poor business practices, unskilled staff carelessness and poor discipline, then I would say that anything you write off is unacceptable.
Take care.
Donald
After 28 years as the Ford dealership in the rural town of Aliwal North, the Blue Oval will no longer be officially represented in this part of the Eastern Cape.
Inefficiency in a dealership is often not that obvious and that is why it is difficult to identify and address.
In the face of a shifting premium automotive market, Audi South Africa is also currently re-aligning its retail operations according to the new reality where the premium vehicle sector has contracted to nearly a third of its size compared to a decade ago, with 2024 marking the lowest level yet.