Is Your Auto Parts Department Profitable? 8 Questions to Ask
The parts department makes a significant contribution to the overall auto dealership revenue and profit; therefore it is essential to focus on increasing profitability. Having an organized and smooth running auto parts department is critical to supporting the service department and directly impacts the levels of customer service satisfaction and retention, with subsequent effects on long-term profitability.
To determine its profit potential, ask yourself the following questions:
- Does your personnel spend more time searching for parts rather than servicing the customer?
- Are customers turned away due to stock-outs?
- Do you have inventory turnover levels of 12 months or longer?
- Does your auto parts department produce an unsatisfactory ROI?
- Do you have excessive capital tied up in obsolete or slow-moving inventory?
- Could your inventory use better organization in terms of size and movement?
- Does your Customer Service Index fall below industry standards?
- Is your inventory taking up space in aisles, offices or other non-storage dedicated areas?
If you answered “yes” to one or more of these questions, it’s time to consider a more efficient auto parts storage system.
By compacting your existing shelving or racking with a mobile storage system, wasted aisle space is freed up for more storage capacity. The ActivRAC storage system from Spacesaver is built with mobilized carriages that move side-to-side on a rail system. The industrial-grade carriages, which ride on wheels mated to rails, can be configured with existing or new pallet racking, shelving and cabinets. Users decide how many carriages to move at a time opening an aisle only where needed to eliminate unnecessary aisle space—and as much as double the amount of storage space in the same footprint.
Whether you need to store and organize small parts and service tools to larger, bulkier items such as tires or batteries, ActivRAC can handle it all. The storage system can accommodate loads up to 30,000 lbs. per carriage, or 60,000 lbs. per back-to-back section.