When your dealership has streamlined, organized and enhanced its processes for parts management and inventory, it provides you with a valuable opportunity to increase your business profits and customer satisfaction.
However, having the right parts in stock is just one piece of a successful parts plan. Here are other questions to consider to improve your dealership's parts business.
Am I organizing my parts inventory in the right way?
Your customers will have regular, ongoing parts needs depending on their job requirements, but there will always be new opportunities and one-off sales of parts that can either add more value to your bottom line or create potential customer service issues if not managed the right way.
If it's been a while since you've thought about your parts inventory, let this be a gentle reminder. Business growth, new team members, new equipment, new markets, new customers, new locations and any other changes to your operation mean that your parts inventory and organization system may need a tune up.
Am I keeping the customer in mind during the ordering experience?
Perspective is important. A customer can have a much different perspective about your ordering experience than you do. Consider this question from the customer's point of view: How easy is it to order parts from your website? Is the process clear and manageable? Is it obvious when the customer can expect the part to both ship and be delivered? Is it easy for them to access their account with you?
Some dealers find that a central ordering team and inventory "hub" is best for their business, and others rely on a decentralized model for optimal flexibility. Whatever decision you make needs to best serve your customers and make it an easy experience for them — and profitable for you.
How are you getting insights into parts usage?
A good software system can bring you the measurements and analytical insights you need regarding your parts inventory, usage, re-order schedule and more. It also can help you analyze what an optimal inventory level looks like for your dealership. When inventory is too low, you risk losing business and having to backorder parts. If it's too high, you are losing valuable inventory space and you may have parts — and dollars — possibly going to waste.
As part of this inventory insights evaluation, you may want to consider if you're stocking the necessary parts and accessories for your customers' needs. If you sell a specific brand of equipment, make sure to keep genuine Original Equipment Manufacturer (OEM) parts and accessories on-hand as OEM parts ensure compatibility, reliability and longevity. Recommending your customers use OEM parts can help them maximize performance and minimize risk of breakdowns or malfunctions.
Do you have an online strategy?
The competition from companies offering online parts continues to increase, and that can make it more difficult for dealers to grow their parts business without a strategy that considers an online sales channel. Consider where your "sweet spot" is compared to your competition. Is it outstanding customer service? Price? Ongoing service and maintenance?
Determine and document your dealership's strengths and use those proof points to help your parts program stand out.
In the fast-paced world of construction, operators can't afford machine downtime when work awaits. As a dealership, providing equipment owners and operators with timely support for parts needs can go a long way in creating a trusted relationship. By evaluating your parts plan, you can elevate your dealership's business opportunities to be the go-to resource for your customers.
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