Automotive parts inventory management plays a key role in the success of any auto repair shop. It enables mechanics to provide fast service to their customers. It helps a business save money, as parts are ordered when they’re at a good price and the business doesn’t order supplies it already has in stock.

Even so, managing the inventory for a bus auto repair shop isn’t easy. Multiple challenges can make it hard for shop owners to keep track of the shop’s inventory in real time. Thankfully, these problems have solutions that, when adopted, can significantly boost shop efficiency and profits.

Challenges in Automotive Parts Management

Overstocking and Understocking

Fixing overstocking and/or understocking issues can reduce inventory costs by up to 10%. However, it’s often easier said than done. If certain parts or machinery go on sale, it can be tempting to place a large order, without leaving money for other parts and/or machinery that will be needed in the near future. Alternatively, companies that wait too long to stock needed parts may be setting themselves up for problems that affect in-shop efficiency and customer satisfaction levels.

Inaccurate Balance Sheets

Keeping a balance sheet updated in real time is no easy task. Unfortunately, inaccurate balance sheets can cause headaches and additional expenses for shop owners. If you think you have more money than you actually do, you may wind up spending more on inventory than you should. Conversely, you may be tempted to hold onto cash until the last minute, leading to a lack of inventory for repair and maintenance tasks.

Miscommunication

A whopping 86% of employees and executives say that the inability to communicate and work well with others in the workplace is the main cause of workplace failures. Miscommunication in an auto repair shop can happen at multiple levels. A mechanic may tell the manager that the shop is running out of certain parts, but the manager forgets to act on this information. A manager may think mechanics need certain parts when those doing repair and maintenance work actually need different products. In any case, miscommunication can lead to overstocking or understocking your inventory, balance sheet issues, and other hassles.

How to Improve Your Automotive Parts Management

Categorize Inventory

Don’t bunch all your inventory items together. Categorization makes it easy to see what you have and what you need. If you can’t keep parts separate in a storage facility, you can at least separate them on paper.

Prioritize Parts

Take stock of your business practices, target audience, and business performance over the last year. Which parts do you use the most? You’ll want to make sure in-demand items are in stock at all times.

It’s also a good idea to do regular maintenance on your machinery. As you do, check the shop equipment for signs that you may need new parts for your equipment or even new equipment.

Quantify Your Inventory Metrics

Quantifying your inventory metrics simply means deciding when you’ll order new automotive parts. Will you wait until you have ten items left in inventory before you make a new order, or do you want to place a new order when you have twenty items left in stock? Each product you have in stock should have a quantified inventory metric.

Your inventory metrics will depend on multiple factors. These include the type of repair work you offer and your target audience. It’s also important to take shipping times into account. For instance, if it takes two weeks to get new truck parts from another country, you’ll want to place your order more than two weeks in advance to ensure you have the parts you need even before you need them.

Utilize Inventory Management Software

Inventory management software can save you a lot of time and money. There are multiple platforms to pick from, which can make it easy for you to find the program that’s the best fit for your shop.

Inventory management software can help you keep track of inventory in real time, even if you have more than one auto repair shop. You can program the software to automatically alert you if inventory for a particular product dips under the metrics you set for your shop. You can also use the program to see which machinery and repair parts you use the most, how much you’re paying for certain parts, etc.

Tailoring Car Parts Management For Your Business

Automotive parts inventory management isn’t something you can plan on a one-time basis. You’ll need to keep track of problems that arise and look for ways to remedy issues. Supply chain shortages, price increases, and sales should all be taken into account to ensure you’re getting the best parts at the best price.

Advances in technology and changes in your target audience can also affect your inventory metrics. As EVs become increasingly common, you’ll want to stock replacement parts for common EV models. If your neighborhood changes and some of your services become more or less popular, you’ll need to adjust inventory management to meet your customers’ new needs.

Keep Your Inventory Updated with OEM Auto Parts

SVI Inc. has many years of experience helping auto repair shops keep inventory updated but not overstocked. We sell more than 40,000 products, including shop equipment, replacement parts for shop equipment, tools, and replacement parts for multiple vehicles. What’s more, our team of degreed, experienced mechanical engineers can recreate discontinued parts or even design custom parts to meet your needs.All parts in stock are shipped within 24 hours to ensure you get your orders without undue delay. Our two ready-ship warehouses on opposite sides of the country make it easy for us to serve customers from all parts of the United States. Additionally, our customer service team is familiar with the needs of auto shop owners and can help you find what you need in a jiffy. Contact us to learn more about what we offer or to get price quotes.