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How to Avoid Inventory Discrepancies at Your Auto Dealership

How to Avoid Inventory Discrepancies at Your Auto Dealership

It may seem like an easy task to manage the inventory of automotive parts. If you’ve ever worked Auto Dealership behind a parts desk, then you know that this is a difficult task. You need to have the right strategies and skills to manage inventory properly. Without it, things can quickly get outof control.

  • Anyone who is involved in your parts inventory should be able to comprehend this. Otherwise, errors can be much more easily made.
  • Today we will discuss how you can reduce inventory discrepancies. Let’s first look at common discrepancies.

What are the most common reasons for inventory discrepancies in auto dealerships?

You must reduce the chances of discrepancies in order to ensure accurate inventory. You need to understand why these discrepancies are occurring.

These are the causes of frequent discrepancies within your inventory records:

  • Human error – This includes miscounts and calculation errors as well as data entry issues by staff members or coworkers.
  • Unit measurement error – This includes incorrectly weighing parts, or using the wrong unit when selling or taking inventory.
  • Missing parts – These errors can be caused by mislabeling or mistaking parts for similar ones.
  • Theft is a real possibility. This happens to everyone, not just externally. Companies that do not keep track of their inventory are at high risk for internal theft.
  • Receiving errors – This happens when inventory receivers fail to verify the number and received parts.

These are just a few of the many causes of discrepancies. There are simple ways to avoid them.

How can you avoid inventory discrepancies in your auto dealership?

Your staff should be trained

Make sure everyone who handles your inventory is familiar with the correct procedures and practices.

Make sure that your staff follows the training they received.

Even though you spend hours training staff, sometimes they will stray from the process. They might think it’s easier to do it another way, or they may stop doing it because it seems redundant.

It is important to monitor your staff and ensure that they follow the training and processes. If they don’t know how to do it, remind them and explain why. If there are steps you think could be improved, be open to changing processes.

Keep proper records

You should make the most of your inventory system by including accurate location information.

Organise your parts

Be sure to organize your parts. This means that each SKU should be kept in one place. To reduce the chance of parts getting put back in the wrong spot, you should also have bins, parts and locations clearly marked. You should have clear boundaries where parts start and stop, such as bins that are separate, separators between parts within the same bin, or lines taped to shelves.

Restriction of access

Limit the number of people allowed to retrieve and return parts whenever possible. This will lower the chance of parts getting lost.

Correctly receive products

Make sure your team correctly counts and reconciles quantities when receiving products. This will help you keep track of everything and allow you to correct any mistakes quickly.

Additional Resource:


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