If you want to improve the quality of your stock, stock rotation is an excellent lever: it will significantly simplify your management and the daily running of your business. So, here 5 tips to optimise automotive parts stocks rotation:
1. Keep up to date with the latest market news
One way to optimise automotive parts stock rotation as a distributor is to keep yourself informed through specialised media. Depending on your habits, turn to magazines, websites or official pages on social networks: these are reliable and comprehensive sources that will help you to see the current situation more clearly.
The aim of all this is to anticipate demand as much as possible and thus know the best time to buy and in what quantity.
2. Encourage rotating inventories to optimise automotive parts stock
Since stock management should not be at the expense of your commercial activity, favour the use of rotating inventories. These have three main advantages
a. Your staff is not fully engaged and can manage ongoing tasks in parallel;
b. Your shop does not need to be closed and you can receive your customers or their calls;
c. Your stock is more regularly updated and more accurate.
d. This is a simple way to positively influence your stock rotation.
3. Keep a close eye on the outdated stock
Since cost control is a primary objective in today’s market, make sure you correctly identify stocks that show little or no recent movement. This will allow you to adapt your commercial offers better.
Your aim is clear: to sell off these unused parts stocks in order to limit costs, either through promotions or by returning them to the supplier (if this is possible).
4. Adapt supply times
Procurement timeframes are closely linked to the choice of your suppliers. They are a crucial factor in terms of flexibility, particularly in the context of shortages of metals and semiconductors (components of complex parts in high demand). Indeed, some equipment manufacturers have reached a service rate of less than 40% in the first quarter of 2021!
To reduce the risk of stock-outs and the costs of stocking too many references, try to reduce supply delays as much as possible.
5. Use indicators to assess and optimise automotive parts stocks
Finally, the last tip on how to optimise automotive parts stocks is to guide you in managing your stock and assessing its condition, define performance indicators such as turnover, service, availability, allocation, etc. These will help you to quantify the costs and benefits of your stock.
The latter will help you quantify changes and set targets. In addition, you will be able to measure the impact after each action, for example for procurement decisions.