Whether you run an auto dealership or you have a repair shop, your auto parts department could be one of the most profitable departments for your business. But, if your department doesn’t have the parts customers need in stock or you just don’t have the room to keep enough supply for your demand, you could find your parts department becomes more of a liability than a profit generator.
Luckily, there are ways to boost profits out of your parts department – and sometimes it just takes a little reorganizing and expansion.
How long does it take for your staff to find the parts clients request or your service technicians need? If you are not organized, you are losing time on potential repairs and turn around. Make sure you establish a system that is efficient and decreases how long it takes for a part order to be pulled and fulfilled.
Increase Storage Capacity
Adding extra space, such as through an industrial mezzanine, may help your parts department. You can use your industrial mezzanine space to store extra parts, while leaving the bottom floor for sales or your repair shop.
Check Your Inventory Hold Over Times
Inventory turnover is critical. If you have parts that you hold onto for several months, consider cutting back on how often you order these items. Inventory hold overs can affect your parts department bottom line – and there is no need to stock up on items you do not use daily.
Know What’s Obsolete and Remove It
Obsolete parts need to be resold at discount or removed from your inventory. These are no longer the latest technology; therefore, it is unlikely they will be in high demand.
For more space saving tips or to learn about industrial mezzanines, contact the team at Mezzanines by Design today.