Upgrade Your Auto Parts Inventory Management Process

The article emphasizes the critical importance of an effective auto parts inventory management system for automotive shops, highlighting that proper tracking of stock—including items like oil, tools, and repair parts—is essential to maximize profits through parts markup, avoid costly overstocking or shortages, and improve overall operational efficiency, suggesting that indicators such as frequent overstock or parts shortages signal the need to upgrade to a more advanced system like Tekmetric.

Inventory can include items like oil, tools, and large equipment. It also includes stock items, or parts which are sold to the customer during the course of repairs, such as gaskets and timing belts.

Inventory management and parts management go hand in hand, but outside of labor profits, the profit a shop brings in ultimately comes from parts markup at the point of sale. Consequently, there’s very little room for error in managing parts.

Simply put, mismanaged parts means money left on the table and unhappy customers—a combination no shop owner or automotive team wants to experience.

A good auto parts inventory management system should let you:

Know what parts you have in stock and how many you have
Track what sells and what sits on the shelf longer than it should
Help you plan for growth

With the right auto parts inventory management system, your shop can go from disorganized to a well-oiled machine generating more and more profit.

How to know when it’s time to update your auto parts inventory management system

What are some indicators that your auto parts inventory management could use a tune up? And when should you start looking into shop management systems like Tekmetric? Here are some indicators to look for:

1. Overstocking Parts

It is easy to overestimate the demand for a specific part, especially if you are ordering parts between seasons, ordering specialty parts, or still using pen and paper or a spreadsheet to calculate your inventory.

Whatever the cause, it is important to remember that every part has a carrying cost. You can think of “carrying cost” as the storage cost for a part. Every part that sits on a shelf and occupies space that better selling products could take up costs your business money.

2. Parts Shortage

If you’re constantly running out of supplies, your auto parts inventory management system is failing. Good parts management requires staying ahead of the curve to anticipate the needs of your shop.

If you are always running out of parts and having to order them before you can complete a job, jobs will take longer, you’ll wind up paying more for parts, and you may lose your customers’ trust.

3. You're wasting time finding parts!

Whether the problem is a shortage or overstocking, either way your shop is spending too much time managing inventory ineffectively! If inventory management has become a dreaded task at your shop simply because it takes so long to complete, it is time to upgrade your system.

Inventory management must be a smooth process if you want the rest of your shop to operate efficiently. If regular check ups on your auto parts inventory are taking too long, it is probably a sign of a larger underlying problem—disorganization.

Own Your Parts Inventory With a Cloud-Based Shop Management System

You can’t run a shop without the right parts and tools, and in today’s automotive industry, cloud-based shop management systems not only simplify your shop's operations, they even make it easier to make more money!

1. Direct Integrations with Parts Vendors

With immediate access to your favorite vendors directly inside Tekmetric, service writers can instantly find what they need.

Even better, because you can integrate multiple vendors, your shop can compare prices to get the best deal, and place an order in a matter of seconds.

2. Complete Inventory Management - From Anywhere

Track the flow of parts in your shop with Tekmetric's Inventory that connects to repair orders, estimates, and more. If you don't have a part in stock while working on a car, quickly swap the part for a similar one in inventory.

And because your shop management system is in the cloud, you can access your shop's parts inventory and do everything you could in your shop right from your phone or tablet. Literally, you can log in from anywhere in the world you have an internet connection to gain complete access to your shop remotely.

3. Create parts matrices to apply the right mark-up every time

Using a parts matrix in particular is one of the most important aspects in making sure your shop is profitable.

By building streamlined processes for marking up parts, shops can ensure they grow their profit margin while staying fair to customers.

Fine Tune Inventory Management with Tekmetric

Whether you need to track down a stray steering column or make a decision about how much to invest in A/C repair parts for the summer, Tekmetric is your go-to system for gaining a better understanding of how parts move through your shop.

Ready to grow your automotive business? Book a personalized Tekmetric Demo Here

FAQ

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.