Benefits of auto parts inventory management
Let’s explore what inventory management can do to ensure you have a steady supply of parts so your shop runs smoothly. Here are a few immediate and long-term benefits.
1. Increased customer satisfaction
Customers are frustrated when their work can’t be done because a part is delayed or out of stock. If your inventory is well-managed, you’ll be able to give quotes and timelines with certainty and give your customers a great experience. Predictability keeps customers happy and loyal to your business.
2. Reduced costs
Efficiently managing inventory will reduce costs in a number of ways:
- Prevents stockouts—not having enough of a part in your inventory to meet your needs.
- Avoid overstocking—forecasting demand keeps overstock to a minimum.
- Carrying costs—the expenses that come with storing additional inventory and stock. When your inventory levels are well-managed, you can save on the costs that come with overstocking.
Overall, your auto parts inventory management reduces costs by finding the sweet spot between too much and not enough inventory. This will give you greater flexibility and access to more financial resources.
3. Improved ordering process
The ordering process doesn’t need to be a guessing game. Inventory management helps you track levels and lead times so your business can determine accurately what parts you will need and when. Organizing this process keeps errors to a minimum and helps you maintain control over ongoing expenses.
4. More efficient scheduling
Predictable scheduling will always translate to happier customers. Tracking your inventory needs in real-time will streamline production schedules and eliminate mid-project downtime.
When inventory and stock are well-managed, everything runs more smoothly. Inventory management helps you look at the history as well as your current demand for parts and forecast your ideal inventory level.
5. Better resource allocation
The less capital you have tied up in inventory, the more flexibility you have to invest in other parts of your business. Instead of unnecessarily using up storage or losing money because of slower productivity, you’ll be able to put those resources to good use, finding better use of the space or making other upgrades around your shop.
6. Optimized time management
Methodically stocked and organized parts help you and your staff to stay on task. This creates a better work experience for your entire company.
To make sure things keep running efficiently, you might organize your inventory based on frequency of use, analyze your ordering practices, and identify a backup supplier for important parts. This pays off dividends in the long term, helping your business run more efficiently and make more money.
Simple ways to improve your auto parts inventory management
Managing inventory doesn’t have to be stressful. There are steps you can take now to improve how you operate in the long term.
Store your parts efficiently
The first step to taking control of your inventory is being intentional about where and how your parts are stored. Have designated places for parts you need frequently. Clearly label packages of small items to mitigate confusion, lost parts, and reduce unexpected shortages. Thoughtful organization is the backbone of a well-managed inventory.
Keep parts stored when not in use
The simplest rules are often the most helpful: if a part isn’t being used, put it away. This habit will prevent misplaced parts and reduce unnecessary clutter. This requires buy-in and consistent effort from employees to maintain this standard.
Perform regular inventory checks
Establishing a cadence for checking inventory will make it easier to spot small issues before they become big problems. If you can’t check everything, identify which parts have the quickest turnover and which parts are the highest value, and prioritize checking that inventory first. Continue to examine and adjust your inventory-check process throughout the year.
Hire and train reliable parts personnel
Human error is unfortunately one of the biggest causes of discrepancies in inventory management. This can happen by cutting corners, like assuming the received shipment matches the amount ordered. Hire and train capable, diligent employees to manage your inventory and prevent errors at key moments.
Use an auto shop management software
Auto shop management software streamlines workflows, creates a central point of communication, and is the best way to get your inventory under control.
- Inventory tracking: Track inventory levels in real-time so you have an accurate count of the parts and supplies you have in stock.
- Workflow management: Schedule appointments for vehicle repairs or maintenance, see what appointments are coming up, when they’re scheduled, and what you’ll need to get the job done.
- Real-time data reporting: See a snapshot or do a deep-dive into your shop’s operational data, like inventory, sales, and customer information.
- Centralized communication: Without solid communication, costly mistakes are made. Auto shop management software can modernize how you interact with customers and keep your whole team in the loop.
Manage your inventory efficiently with Tekmetric
With the right auto shop management software, the inventory management process can become an asset to your business instead of a bottleneck or drain on your time and money..
Using Tekmetric’s Inventory, you can track the valuation of your stock either while you’re in the shop or remotely. It gives you the price of each part in your inventory and makes shopping for new items easy.
Tekmetric integrates with your preferred vendors using ordering solutions, like Worldpac, Nexpart, and Advancepro, making ordering simpler and streamlining your workflow..