Periodically, step back and take stock of your inventory-control and management performance.
During the course of day-to-day business in the parts department, much is taken for granted. Too often, problems go undetected until they become obvious and looming. By then you are either applying a quick fix or feeling overwhelmed.
By answering the following questions, you can quickly assess the performance standards of your parts department. The questions help identify areas where attention and procedures may be lacking.
The objective of the questions is to spark awareness. Then, if there is a deficiency revealed, you can take the steps to fix it.
|If you answer “No”, “Don't know” or “Action Needed” to any question, investigate this area of operation and take steps to correct any deficiencies.||Yes||No||Don't Know||Action Needed|
|1. Do all employees have a complete understanding of their responsibilities for the inventory-control system?|
|2. Are all employees utilizing the inventory-control system adequately trained?|
|3. Do all employees understand the basic concept of inventory control and the theory behind it?|
|4. Do employees fully understand their responsibilities to report inventory errors and/or discrepancies?|
|5. Are inventory control system errors corrected as soon as they are detected?|
|6. Are system tools (terminals, back-up inventory pads, etc.) conveniently located within the parts department?|
|7. Are there sufficient inventory control system tools (terminals, etc.) to sustain the volume of business?|
|8. Are suggested stock orders prepared by the inventory control system without excessive changes or editing?|
|9. Are management reports reviewed and acted upon daily, weekly, and monthly as required?|
|10. Does the department have a documented procedure for special order handling?|
|11. Are customers promptly notified upon receipt of their special orders?|
|12. Are unclaimed or unsold special orders controlled and reviewed daily to avoid accumulation?|
|13. Do all employees understand the importance of lost sale recording and the effects of lost sales on inventory control?|
|14. Are all lost sales recorded daily?|
|15. Are all emergency purchases recorded and sold through the inventory control system?|
|16. Are slow moving parts, very slow moving parts, and parts with no movement reviewed and dealt with regularly?|
|17. Is excess inventory reviewed and dealt with regularly?|
|18. Are return applications for all eligible parts made promptly according to manufacturer procedure to avoid build up of obsolescence or missed return opportunities?|
|19. Is full and total advantage taken of the obsolescence return program offered by the manufacturer?|
|20. Are inventory records updated regularly to reflect current and accurate bin locations, number changes and other pertinant manufacturer parts master record data?|
|21. Does the control system provide the desired results?|
|22. Are guides and setups, such as days' supply, phase-in, phase-out, evaluated at least twice per year and modified as required?|
|23. Is there periodic contact with representatives of the system vendor, auto maker or supplier to assist with performance?|
|24. Is necessary inventory-control system training for employees up to date?|
|25. Are all processes and procedures documented in detail and are flow charts used where needed?|
Parts expert Gary Naples can be reached at 570-824-1528 or [email protected].