Ever wondered how your OEM’s inventory program really compares to other manufacturers—and how much control you actually have over your parts investment? In this data-driven episode, Chuck Hartle breaks down real dealership inventory data from 223 dealerships, 15 manufacturers, and more than $190 million in parts inventory. From productive inventory and automatic stock replenishment (ASR) programs to excess stock and obsolescence, Chuck reveals how manufacturer programs impact dealership inventory performance and where parts managers should be paying closer attention.
Chuck dives into the hidden costs of idle inventory, including “forced stock” parts, unfulfilled demand, special orders, excess inventory, and the growing challenge of obsolescence. He explains why roughly one out of every four parts analyzed had marginal sales, how manufacturer compliance requirements can put low-volume parts on dealership shelves, and why shrinking return opportunities have made managing non-program inventory more important than ever. Most importantly, Chuck shares practical strategies for taking back control—from strengthening special-order processes and challenging suggested stocking levels to strategically managing compliance and building an obsolescence reserve. Whether you want to benchmark your dealership against your OEM, reduce idle capital, or improve inventory turns, this episode provides a data-backed look at what’s really happening inside dealership parts inventories.
Takeaways:
1. Manufacturer Inventory Programs Can Protect Productive Parts—but They Don’t Necessarily Optimize Your Entire Inventory Investment.
2. Forced-Stock Parts, Unfulfilled Demand, and Shrinking Return Opportunities Are Major Drivers of Idle Inventory and Obsolescence.
3. Parts Managers Can Improve Inventory Performance by Strengthening Special-Order Controls, Managing Compliance Strategically, and Building a Plan to Purge Aging Inventory.
Chapters:
00:00 - Welcome & Introduction
01:50 - The OEM Inventory Showdown
03:48 - The Data Behind the Comparison
06:47 - Comparing Productive Inventory by Manufacturer
08:49 - How ASR Programs Impact Inventory
12:33 - What Defines Productive Inventory?
13:51 - Understanding Idle & Excess Inventory
17:18 - The Problem with Forced-Stock Parts
19:20 - Six Causes of Unfulfilled Demand
23:02 - Comparing Forced-Stock Inventory by OEM
27:16 - Why Obsolescence Has Increased
29:41 - The Growing Non-ASR Inventory Problem
34:04 - What Manufacturer Programs Really Control
36:33 - How Idle Inventory Hurts Performance
40:05 - Strategies to Take Back Control
41:13 - Managing Compliance & Obsolescence
45:02 - Using Return Programs & Parts Brokers
46:18 - Benchmarking Your Dealership
48:38 - How Your Inventory Stacks Up
Resources:
LinkedIn: https://www.linkedin.com/company/partsedge-inc-Website: https://www.partsedge.com
Register for the next Webinar here!: https://my.demio.com/ref/rMLm7BvTB3gEzyCa
