In auto repair, there are many moving parts to keep track of—both the literal parts your shop uses to repair vehicles, and the parts of your business that determine your shop’s efficiency, security, and ability to grow. If you want your shop to flourish, it’s crucial to devote part of your business to keeping track of the parts you order.
Many shops track parts in terms of cost of goods sold. The parts you need for the job are included on every repair order, so it’s easy to see what parts your customers are paying for as long as you have a solid process for building repair orders.
But what about in terms of accounts payable? How does your shop track how much you’re spending for parts from the supplier?
Should You Use Purchase Orders or “Save Time?”
For your accounts payable, or determining how much you’ll owe your parts suppliers, there are typically two routes you can take:
Wait for the parts bills to come in and trust that you’re being charged the correct amount, or
Create a formal purchase order each and every time you order parts from a supplier.
The advantage of going with the first route is that you save a little bit of time; there’s no second step of reconciling the part you need to purchase on a purchase order. But the cons far outweigh this advantage—because this is where shops can start to lose money.
For example, your ROs may indicate that you have a 30% profit margin on parts, but if you don’t accrue your parts bill, you won’t know for sure if that’s the case until the parts bill hits your account. Suddenly, when the money gets taken out, your margins are razor-thin.
So, what happened?
Did a supplier charge too much? Were you double-charged? Was an unauthorized person ordering parts on your account? Was there theft?
It’s hard to tell if there is no paper trail or purchase order for you to look at.
If you’re not paying attention to your parts orders on the accounts payable side, you could be losing money, and it will typically take a large missing chunk of change for you to realize that something is wrong. Withouta paper trail, figuring out the problem is not only difficult but also extremely time consuming. Once you notice that there is a loss you can’t account for, all the “time saved” by skipping the purchase order step comes back in the form of time spent trying to figure out the issue.
By reconciling your parts orders on both repair orders and purchase orders, you can easily check to see what’s going on, protecting your shop from incidents where you are losing money due to overages, slip-ups, theft, and overcharges.
How to Build a Better Parts Ordering System
When it comes to tracking parts on repair orders and purchase orders, consistency is key. Shops that have strong, consistent processes and procedures—and follow them every single time—rarely have issues with leakage and theft; they instill habits in their team to keep careful track of all parts.
As long as your shop has a repeatable process for adding parts to repair orders and putting in purchase orders, you will be able to quickly identify any issues as soon as they crop up. Every service advisor and employee that orders parts and builds repair orders for customers should use the same method for filling out repair orders, creating purchase orders, and inputting this information into your shop management system and accounting system.
Create a standard process for each of the following:
How jobs get posted
How repair orders are built
How repair orders are approved
How parts orders are posted
How purchase orders are written and sent to suppliers
How purchase orders are approved
How parts and purchase data get analyzed
Instill Parts Ordering Best Practices with Tekmetric
Standard procedures for ordering parts and creating repair orders are built into Tekmetric. We give shops the tools and guardrails needed to effortlessly track parts throughout each step of the repair process.
From our intuitive repair order builder to our integrated parts ordering and inventory systems, we aim to align your team so that no money slips through the cracks. And our industry leading analytics and reporting tools allow you to keep track of your shop’s financial history in realtime.
This article was written with the guidance of automotive repair industry CPA Hunt Demarest of Paar, Melis, & Associates, P.C.
More than anything, partnerships should be mutually beneficial to everyone involved. When good partnerships are formed, the whole should be worth more than the sum of its parts.
Why Should Your Auto Business Partner with Other Brands?
For example, McDonald’s burgers make you thirsty enough to want a Coca-Cola, and sodas have a high margin. By partnering up, McDonald’s can lock in their costs on soda and improve their profit margins for the long term.
On the other hand, not all partnerships are beneficial. Partnerships can expand your opportunities but can also force you into making decisions you never intended to make. When McDonald’s decided to partner with Coca-Cola, they had to exclude other soda brands from their locations.
This exclusivity may have been worth it, but it meant removing options from customers, such as Dr. Pepper and Pepsi products. What may have made the partnership intriguing for McDonald’s is the fact that Coca-Cola owns a variety of beverages, including Diet Coke, Fanta, Sprite, Powerade, Minute Maid and Pibb Xtra.
Thanks to a variety of options, McDonald’s is able to satisfy most customers who ask for a Dr. Pepper by saying, “Will Pibb Xtra be okay?”
Partnerships in the Auto Repair Industry
In the auto repair industry, we face similar challenges when it comes to partnering with other businesses and brands.
Potential partnerships may include teaming up with parts suppliers, software companies, marketing and trade show affiliates, and any other service, resource or tool that could potentially improve your shop. In some cases, these partnerships will help shop owners enhance performance, save costs and drive revenue.
Other times, auto partnerships may bind you to an agreement that doesn’t pay off.
Here are some questions you can ask yourself to determine whether a partnership is mutually beneficial or if they’re asking you for more than you’re getting in return.
1. Are You Free to Choose the Tools and Solutions You Want?
One sign of a bad partnership is being forced to do something you don’t want to do. If partnering with another company means taking valuable options off the table, then you may be at a disadvantage.
If your partner implies or directs you not to do business with their competitors because they would like for you to instead use their services or their partner’s services, think it through.
Before officially entering a partnership, imagine your shop one year, five years and ten years down the road. Where will it be then? What will happen if your shop grows? What if innovation has slowed down with your partner? Will you be allowed to innovate your business by using new tools and solutions that become available in the future?
If you’re restricted in a way that prevents you from innovating or adapting to market conditions by testing other products, tools, solutions, and software, you may be handcuffed and unable to compete with other shops.
Role-based access is the ability to control what each employee can see and do in your shop management software based on the job they hold. A technician clocks into jobs and completes inspections. A service advisor builds estimates, sells work, and takes payment. An owner sees the money. Each person gets what the job requires and nothing beyond it.
At one location, you can run loose. You are in the building. You hear the conversation at the front counter, you notice the discount before it posts, and you can walk 20 feet to correct something. Permissions are a convenience.
At three locations, they become the only way a standard survives when you are not there to enforce it.
What role-based access actually means in a shop management system
Two ideas sit underneath the term, and they are worth separating because vendors use them interchangeably.
A role is a job function with a default bundle of access attached. Roles are defined by titles like owner, manager, service advisor, and technician. It is the starting point when you create an employee.
A permission is a single switch that determines if someone can post a repair order, export a customer list, edit a labor rate, and refund a payment.
A system with roles but no granular permissions forces you into whoever the vendor decided a "technician" is. A system with granular permissions but no way to save a configuration forces you to rebuild that configuration by hand for every new hire. What you want is both — job-level roles you can adjust, and the ability to save the adjusted version and reuse it.
That last part is where most operators get stuck, and what breaks at scale.
What changes when you go from one shop to many
Three things shift, and they compound.
You stop being in the building
This is the obvious one and still the most underrated. Presence is a control system. Remove it and you need something to take its place.
"Now I can look at everybody at a glance. I can be in a different state, different city and know exactly what's going on in each location all the time. That's not something I had before." — Leroy Ingram, Ooroo Auto Care (MSO)
Visibility is half of it. The other half is deciding, in advance, what each person is able to do when nobody is watching.
Every standard you set needs something holding it in place
Multi-shop operators spend real effort standardizing digital vehicle inspection templates, canned jobs, the labor matrix, and discount policies. Then they hand that standard to 20 people across five buildings and hope.
Permissions are what turn a policy into a setting. If only a manager can apply a discount above a set dollar threshold, the policy holds by default instead of by memory. If only two people at each store can unpost a repair order, your month-end numbers stay clean.
Auditing turns into a job nobody has time for
At one shop with six employees, you can check everyone's access in 10 minutes. At six shops with 60 employees, you cannot.
This is where some multi-shop operators fail. It is not that operators set permissions badly. It is that they set them once, correctly, and then never look again. Six months and four hires later, nobody can tell you who has access to what.
The permissions that carry the most risk across locations
If you are evaluating software, these are the specific controls worth asking a vendor to show you in a demo.
Discount and pricing authority. Who can apply a discount? Who can change a labor rate or a pricing matrix? Every dollar discounted comes off the repair order total, which means it comes off both your average repair order (ARO) and your gross profit.
Posting and unposting repair orders. Posting finalizes the repair order and creates the accounting entries. Unposting reverses it. You want the second one narrow: enough people to fix a genuine error, not enough to make your reporting unreliable.
Employee and permissions management. Who can grant access is a separate question from who can edit an employee record. A system that treats them as one switch is giving away more than you think.
Reporting visibility. A store manager should see their store. Not everyone needs the portfolio view.
Customer export. The ability to download your customer list is the ability to walk out with it.
Payments and accounts receivable. Anything that moves money after the fact, including open balances on fleet and credit accounts.
Audit visibility. Login History shows who accessed the platform and when. The Inventory Activity Feed shows who changed what in parts. Permissions tell you what someone can do. Audit trails tell you what they did.
How to set this up before you open the next location
Write the roles down before you touch the software. List every job title you actually have, not the four the software ships with. Master technician and apprentice are different jobs. So are store managers and service advisors.
Build them as reusable groups, not one-off profiles. If you are adjusting permissions employee by employee after the fact, you have built something you cannot maintain and cannot audit.
Decide what cross-location access means. Most people need one store. A handful need several. A very small number need everything. Be deliberate about which is which.
Set the exception path. Someone will need something they do not have, at 4 p.m. on a Friday. Decide now who grants it and whether it gets reversed.
Put a quarterly review on the calendar. Access drifts. Roles change, people move stores, someone gets covered for a week and keeps the access.
How Tekmetric handles role-based access across locations
Tekmetric is an all-in-one auto repair platform, and employee access is managed in one place rather than shop by shop.
New employees start from a default role — admin, service advisor, or technician — each with its own permission set. From there you can either adjust individual permissions or assign a saved permission group, so a master technician and a junior technician can carry genuinely different access without either being configured from scratch.
For operators running more than one location, the setup happens once. You create the employee in the Tekmetric Multi-Shop dashboard, choose their role and permissions, and select which shops they belong to. You also can see every employee in the organization in one list, including which shops each person is in and what their role is at each.
Organization owners set a separate level of Multi-Shop access on top of shop-level permissions, which is how you give a regional lead the portfolio view while a store manager keeps a store view. And because every permission change is logged with who made it, what changed, and when, the quarterly audit stops being an archaeology project.
"I've gone from doing the transaction to running the store to now have a team of ops guys that run the stores." — Matt Schwab, Clutch Automotive (MSO)
That progression is the whole point. Delegation is not a personality trait, it is an infrastructure question. You can only hand a store to somebody once the system can define what they are handing back.
The takeaway
Role-based access is unglamorous, and it is the difference between an operator who has five successful shops and an operator who has five struggling shops. Set the roles before you need them. Build them as groups you can reuse. Look at them again every quarter.
Then you are free to go somewhere else and still trust that the standard is still holding.
Order too many parts and your money and space are tied up in inventory. Order too few and when you run out of what you need, projects come to a standstill while you wait for a delivery. That’s why you need a solid auto parts inventory management system.
Auto parts inventory management is a process that helps you decide when to buy, store, use, or sell auto parts, so you can be sure that items you need are in stock when you need them. This requires tracking parts you have on hand and streamlining the process of reordering or replacing them at the right time.
An inventory system will help your shop run more efficiently and free up a ton of time. Implement an effective system to tighten up your workflow and take your business to a higher level.
.svg)
.svg)
.svg)
.svg)
.svg)
.svg)
.svg)
.svg)
