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.
In the automotive repair industry, efficiency and organization are key to keeping customers happy and maximizing productivity. While traditional tools have always been the foundation of a mechanic’s work, modern software solutions like parts inventory management software are revolutionizing the way shops operate. By integrating software with traditional tools, mechanics can streamline repairs, reduce downtime, and focus on delivering exceptional service.
One of the biggest challenges mechanics face is delays caused by missing or misplaced parts. With inventory management software, you can always have a clear view of your inventory, ensuring the parts you need are in stock and ready to use. This eliminates the frustration of searching for or reordering parts mid-repair, expediting the entire process.
Tekmetric’s inventory management software gives you real-time updates on stock levels, so your team can quickly locate and retrieve parts when needed. By integrating this system with traditional tools, you can keep your repairs moving faster, improving turnaround times and customer satisfaction.
2. Clear organization
A disorganized shop can lead to wasted time, miscommunication, and errors. With car parts inventory software, you can create a digital inventory catalog, ensuring every part is accounted for and can be easily located. This streamlined organization makes it simple to track high-use items and plan for reordering.
Traditional tools like diagnostic equipment and repair manuals can be paired seamlessly with software features like Tekmetric’s parts ordering system, which ensures your shop has the tools and parts needed to tackle every repair. Combining digital and physical resources helps mechanics stay organized, reduce clutter, and maintain a professional work environment.
3. Less administrative work
Manual inventory management takes valuable time away from what technicians do best: repairing vehicles. By adopting auto parts inventory management software, you can significantly reduce the time spent on administrative tasks. Tekmetric automates inventory tracking, reordering, and reporting, freeing up mechanics and shop owners to focus on delivering quality service.
Automation also reduces errors in inventory counts, minimizing costly mistakes and ensuring your team always has the parts they need. With less time spent on paperwork, your shop can prioritize what matters most: getting customers back on the road quickly and safely.
4. Better customer experience
Auto parts inventory management software is designed to make your shop more efficient, organized, and customer-focused. By providing real-time updates, automated tracking, and seamless integration with traditional tools, Tekmetric helps shops stay ahead of the competition.
Closing Thoughts
For mechanics and shop owners, integrating modern tools like car parts inventory software with traditional equipment isn’t just an upgrade—it’s essential for staying competitive. By streamlining repairs, improving organization, and reducing administrative work, inventory software enables your shop to operate more efficiently and deliver better service to your customers. Invest in the tools that make a difference and see the results for yourself.
Today’s vehicle owners look for shops that prioritize their evolving needs, and many gravitate towards shops that take care of their entire vehicle in the most efficient manner, from the engine to the tires. As vehicle owners look for a one-stop auto repair shop, shop owners have the unique opportunity to expand their business by also selling tires. This is where Tekmetric’s Tire Suite comes in — a solution that simplifies tire management, letting you save time while leveraging the opportunity to expand your service offerings.
Tire Suite is a feature that your shop can add onto your existing Tekmetric plan. With this add-on, you have access to tire-specific features that allow you to view data specific to your tires and in turn make informed decisions to support that area of your business. By maximizing the information in Tire Suite appropriately, you can open the door to this new business stream – without losing efficiency in your shop. Here are three ways you maximize tire management in your shop:
1. Time is money – streamline processes to maintain efficiency
Effective shop management saves you time and money – and there are several simple ways you can apply this strategy to the tire portion of your business. For instance, with Tire Suite, you can reduce the amount of time it takes to register Department of Transportation (DOT) numbers when you sell a tire. DOT registration with Tire Suite registers DOT identification numbers electronically with the appropriate tire manufacturer via the Tiremetrix integration. In addition, you get real-time feedback when entering a DOT number in the system to ensure the validity and recall status of the tire.
Instead of having to worry about compliance or losing hours of time to DOT# entry, your service advisors can gain time back with Tire Suite’s automated registration process. Typically, DOT number registration is a manual task, and the time it takes to enter each number can add up to hours of labor time depending on your shop’s sales. Tekmetric’s Tire Suite allows your service advisors to spend less time entering information and more time with the customer. By streamlining manual processes like DOT registration, your shop can handle more work in less time and maximize profitability – all while offering a more convenient and comfortable process for vehicle owners.
2. Leverage accurate data to maximize tire shelf life
In addition to tire compliance, it is also important to set up a system where the tires are used in a timely fashion. Tire Suite allows your team to track inventory and maximize the use of available tires while also making sure tires do not sit too long on the shelf. This requires a bit of finesse, and that’s where Tire Suite comes in. Now, service writers can quickly look up all tires for preferred brands that will fit a vehicle and source them directly from inventory or add as a needed job part.
In addition, tire fitment data allows you to access detailed tire specifications in the RO sidebar for a specific vehicle. For example, if you have a vehicle that needs staggered tires, the data will ensure you get two tires of each type rather than four of the same size. That attention to detail is made possible by leveraging tire-related data – and it can make a significant impact on growing that portion of your business.
3. Build and retain customer loyalty
Once a dealership warranty ends, 70% of customers will seek a repair shop they know they can trust and remain loyal to. Customers value convenience and comfort. When those needs are met, they are more likely to trust your shop and return to do business with you time and time again.
Shops with the highest retention rates often make tires a part of their business because customers are looking to kill two birds with one stone. Conversely, by not selling tires, you can even hurt your retention rate. When you choose to offer tire management services and provide them in an efficient manner, you are more likely to maintain your customer retention rate because vehicle owners will have everything they need in the hands of their favorite shop.
Adding tire services to your auto repair offerings may seem daunting – but the opportunities far outweigh the challenges. When you leverage the appropriate tools for tire management, such as Tekmetric’s Tire Suite, you can maintain your shop’s efficiency and meet vehicle owners’ needs without missing a beat. The result? Happy, returning customers – and growth in your bottom line over time.
Hey auto repair shop owners! When’s the last time you examined your invoicing process?
Your shop’s invoicing process may seem like a small part of your business. But your auto repair shop invoicing software presents an oft-overlooked touchpoint with your customers. If you approach it strategically, your invoicing process can be adjusted swiftly and easily to yield tangible improvements to your bottom line.
For customers, the invoicing stage is likely the cause of some amount of stress; it’s never fun to write a big check to get your vehicle fixed.
For shop owners, the invoicing stage is an opportunity to show customers that they’re being taken care of. According to an extensive JD Power customer survey analysis of auto repair customers, “...Quality work done promptly, explained clearly, for a fair price, and delivered with excellent customer service is what leads to customer satisfaction among American drivers.”
A frictionless auto repair shop invoicing software that connects to the rest of your business allows you to build customer loyalty, as well as upsell, cross-sell, and reach a broader customer base. When you take care in how you invoice, and note the impact invoicing has on everything else, you can turn what is normally a stress-inducing process for customers into a process that builds trust and maintains a positive image for your shop.
Here’s how you can find synergy between your auto repair shop invoicing software and other parts of your process to build customer loyalty, improve your marketing, fuel sales, and grow your business.
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