Everyone who has worked in or around a dealership knows the
business sinks or swims on proper inventory management. But
“management” implies proactive action toward an
objective. Decisions are only as good as the information that drive
them. Are you just relying on a floor plan audit to know things are
good?
No dealer wants a customer to walk out after waiting an hour for
a salesman to locate the unit the website showed in stock. No
dealer enjoys a lot bloated with slow moving product. No dealer
wants to discover fraud in the parts department. Strong inventory
control procedures should be the first priority in identifying and
eliminating these inventory issues.
The strongest inventory controls revolve around a physical
inventory count and reconciliation with a few key components to be
effective: segregation of duties, a “blind” count, and
frequency.
