ACG "Smart Parts" E-Newsletter

"Smart Parts"

E-Newsletter

May 2024

Issue 170 - May 2024

ACG "Smart Parts"

with Dave Piecuch

May 2024:

"Parts Life Cycles"

ACG "Smart Parts" - May 2024

Last month, we focused on "The Lifespan of a Part Number", so in this month's issue of ACG "Smart Parts", we will continue and follow up with that theme with "Parts Life Cycles."

Even though the theme of this month's issue may seem to be similar to last month's issue, I can assure "Smart Parts" Managers out there that even though similar, they play different roles.

Much like in our own lives, and over our own lifespan, we all go through "life cycles" in different stages of our own lives.

Believe it or not, automotive parts also go through "Life Cycles" from the time they are born all the way to the end when they go obsolete and discontinued.

These "Parts Life Cycles" are also tied to many industry guidelines that we strive to achieve in managing our Parts Inventories each and every day.

What most "Smart Parts" Managers may not realize is just how many Key Performance Indicators, (K.P.I.'s) are actually wrapped around this term that we call "Parts Life Cycles".

Parts Life Cycles are different from "Service Cycle Times", where we focus on how efficiently we can "cycle" vehicles through the Service Shop.

The "Parts Life Cycle" refers to a period of time from peaks and valleys to life changes, like our own, over the course of time in the life of a part number.

In this issue of ACG "Smart Parts", we will actually tie it all in together with how we measure and apply these "Parts Life Cycles" to Industry Guidelines.

The question is...

"How Does the Parts Life Cycle Play into Managing Our Parts Inventory?"

So, Let's Find Out!!

May 2024

"Parts Life Cycles"

www.smartpartstraining.com

Sincerely,

Dave Piecuch, Vice-President

Automotive Consultants Group Inc.

May 2024

"Parts Life Cycles"

In this issue of ACG "Smart Parts". we will continue with a theme, although similar to last month's theme of "The Lifespan of a Part Number", we will actually break down that "Lifespan of a Part Number into different stages, which is referred to as "Parts Life Cycles".

Much like our own lifespan where we tend to go through different cycles, or "stages" of life that consists of "peaks and valleys", "good times and maybe not so good times", and times in our lives where we are more active than others.

The "Parts Life Cycle" is very similar over the course of the "Lifespan of a Part Number", which we featured last month. In continuing with last month's theme, we will actually break it all down and transform these different "Parts Life Cycles" as how they tie into our current Industry Guidelines on Parts Inventory Management.

Managing the Parts Inventory much like any other department in today's Automotive Dealership requires a certain skill for sure. Although, when it comes down to managing the dealers' assets, only the Sales Department and the Parts Department are involved.

That being said, and as in the Sales Department, certain Industry Guidelines are applied that do not affect other dealership departments. But when you break it down even further, managing the Parts Department Inventory gets even more complicated and involved as compared to managing the New & Used Vehicle Inventories.

Managing the New & Used Vehicle Inventories involves a much shorter "lifespan" and fewer "life cycles". It would be kind of like comparing the lifespan of a fly compared to our own lifespan as the fly has a much shorter lifespan.

Therefore, the fly is less likely to have as many "life cycles" as we have in our own "life cycle". Thus, the "Parts Life Cycle" stands alone in comparison and requires their own specific measurements and guidelines as to how we manage the dealers second highest business asset.

The "Lifespan of a Part Number", as we discussed last month is broken down into "Parts Life Cycles". As "Smart Parts" Managers, we have to maximize these "Parts Life Cycles" in order to "turn" the Parts Inventory to Industry Guidelines.

"So What Industry Guidelines are Directly Impacted by Parts Life Cycles?"

Click Here to Read More of Dave's Blog

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