The Biggest Benefits of a Modern Auto Parts Inventory Management Process

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May 22, 2023

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Read time: 3 min

Inventory can include items like oil, tools, and large equipment. It also includes stock items, or parts which are sold to the customer during the course of repairs, such as gaskets and timing belts.

Inventory management and parts management go hand in hand, but outside of labor profits, the profit a shop brings in ultimately comes from parts markup at the point of sale. Consequently, there’s very little room for error in managing parts.

Simply put, mismanaged parts means money left on the table and unhappy customers—a combination no shop owner or automotive team wants to experience.

A good auto parts inventory management system should let you:

• Know what parts you have in stock and how many you have

• Track what sells and what sits on the shelf longer than it should

• Help you plan for growth.

With the right auto parts inventory management system, your shop can go from disorganized to a well-oiled machine generating more and more profit.

How to know when it’s time to update your auto parts inventory management system

What are some indicators that your auto parts inventory management could use a tune up? And when should you start looking into shop management systems like Tekmetric? Here are some indicators to look for:

1. Overstocking Parts

It is easy to overestimate the demand for a specific part, especially if you are ordering parts between seasons, ordering specialty parts, or still using pen and paper or a spreadsheet to calculate your inventory.

Whatever the cause, it is important to remember that every part has a carrying cost. You can think of “carrying cost” as the storage cost for a part. Every part that sits on a shelf and occupies space that better selling products could take up costs your business money.  

2. Parts Shortage

If you’re constantly running out of supplies, your auto parts inventory management system is failing. Good parts management requires staying ahead of the curve to anticipate the needs of your shop.

If you are always running out of parts and having to order them before you can complete a job, jobs will take longer, you’ll wind up paying more for parts, and you may lose your customers’ trust.

3. You're wasting time finding parts!

Whether the problem is a shortage or overstocking, either way your shop is spending too much time managing inventory ineffectively! If inventory management has become a dreaded task at your shop simply because it takes so long to complete, it is time to upgrade your system.

Inventory management must be a smooth process if you want the rest of your shop to operate efficiently. If regular check ups on your auto parts inventory are taking too long, it is probably a sign of a larger underlying problem—disorganization.

Own Your Parts Inventory With a Cloud-Based Shop Management System

You can’t run a shop without the right parts and tools, and in today’s automotive industry. Cloud-based shop management systems not only simplify your shop's operations, they even make it easier to make more money!

1. Direct Integrations with Parts Vendors

With immediate access to your favorite vendors directly inside Tekmetric, service writers can instantly find what they need.

Even better, because you an integrate multiple vendors, your shop can compare prices to get the best deal, and place an order in a matter of seconds.

2. Complete Inventory Management - From Anywhere

Track the flow of parts in your shop with Tekmetric's Inventory that connects to repair orders, estimates, and more. If you don't have a part in stock while working on a car, quickly swap the part for a similar one in inventory.

And because your shop management system is in the cloud, you can access your shop's parts inventory and do everything you could in your shop right from your phone or tablet. Literally, you can log in from anywhere in the world you have an internet connection to gain complete access to your shop remotely.

3. Create parts matrices to apply the right mark-up every time

Using a parts matrix in particular is one of the most important aspects in making sure your shop is profitable.

By building streamlined process for marking up parts, shops can ensure grow your shop’s profit margin while staying fair to customers.

Fine Tune Inventory Management with Tekmetric

Whether you need to track down a stray steering column or make a decision about how much to invest in A/C repair parts for the summer, Tekmetric is your go-to system for gaining a better understanding of how parts move through your shop.

👉 Ready to grow your automotive business? [Book a personalized Tekmetric Demo Here]

FAQ

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Tekmetric Multi-Shop is designed to give owners everything they need to manage multiple shops in one place. Our goal is to help your team gain back time, make more informed  decisions, and maximize your shops’ margins!

Our latest update for Tekmetric Multi-Shop, Shared Customer History, does just that! With stronger cohesion between different locations, multi-shop owners and service advisors can simplify their workflow and provide a more seamless customer experience.

Announcing Shared Customer History for Multi-Shop

April 29, 2024

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When it comes to auto repair, a great customer experience can make the difference between a customer returning for future repairs or not. At Tekmetric, we recognize the importance of creating an excellent experience for your shop’s customers that meets their expectations and keeps them returning again and again. To accomplish this, we strive to offer a solution that helps you meet four key pillars of the customer experience: convenience, comfort, trust and loyalty.

Convenience 

For vehicle owners, choosing the most convenient shop is not necessarily about going to the closest shop. Rather, convenience is a matter of choosing the shop that makes their life easier. 

With approximately 50% of all business shopping completed outside of regular business hours, convenience goes a long way – especially when it comes to auto repair. Customers may need to drop their vehicle off and pick it up later, rather than waiting in the lobby. They may even request to complete pick up after business hours. In all cases, convenient solutions can keep the pick-up process smooth and painless for both you and the customer. 

Tekmetric’s two-way texting opens the door of convenience for vehicle owners. Two-way texting meets the customer where they are – anytime, anywhere. The vehicle owner can access updates to their repair process through a simple text, even from their office desk. Additionally, two-way texting can integrate with Tekmetric’s text-to-pay feature, so customers can pay from work or home, then come pick up the vehicle at their own convenience. 

Comfort

Traditionally, we think of comfort in a physical sense. For example, we might say, “that chair is comfortable.” Customers choose who they do business with based on how comfortable of an experience they receive. Having the tools and resources that ease the tension inherent with getting a vehicle repaired is critical to making a customer feel comfortable. One example that is often overlooked is the payments experience.

With Tekmetric’s “Buy Now, Pay Later,” option, shop owners can offer vehicle owners the opportunity to complete necessary repairs and pay in installments over time. An experience like this can make vehicle repair affordable and comfortable, no matter what the customer’s budget is. 

Trust

Trust between an auto repair shop and vehicle owners is paramount. Not only can it make the repair process smoother for all parties during the repair, but it also contributes to building a lasting relationship for future repairs. A customer is more likely to trust you when you have demonstrated that you can create an experience that is convenient, comfortable and transparent. 

Digital vehicle inspections (DVIs) are a great opportunity to educate vehicle owners on the health of their car by providing them with recommended repairs accompanied by photos and videos. Through DVIs, technicians can offer a holistic, transparent evaluation of the customer’s vehicle by highlighting both areas in need of repair and parts that are working well. The result? Customers can gain a better understanding of the technician’s findings, making them more likely to approve work – and return for future repairs. 

Loyalty

Prioritizing customer convenience, comfort and trust contributes to an enduring sense of customer loyalty. Building loyalty drives your shop’s bottom line in the long term. A good experience for one vehicle owner can lead to a domino effect within their personal network, as they return for future repairs and make referrals to others. Therein lies the hidden gem of long-standing, thriving businesses: strong customer loyalty. 

One of the ways to strengthen customer loyalty is through education and clear communication. Our integration with MotoVisuals demonstrates Tekmetric’s commitment to education and clear communication by showing customers what is wrong with their vehicle instead of simply telling them. Informing vehicle owners about the health of their car accompanied with pictures and educational videos creates a dynamic that is forthcoming, honest and geared towards educating the customer while also ensuring the car gets repaired. 

A customer-centric approach can drive your shop’s performance and establish an excellent customer experience. Use these four pillars – convenience, comfort, trust and loyalty – to drive your shop, and you will create a seamless experience for your customers from start to finish. Whether it’s meeting them where they are financially or educating them about a repair, you can establish a consistent, excellent experience that attracts and retains loyal customers now and far into the future.

4 Ways to Create a Better Auto Shop Customer Experience

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