The True Impact Of Inventory Management On The Automotive Industryadmin
Automotive inventory management involves more than tracking and organizing goods. This area of the industry is significant and requires deep-seated knowledge of supply chain management. Inventory managers must have a finger on the pulse of industry seasons and trends and maintain excellent communication with other departments.
Without inventory management, the automotive industry would suffer incredibly – and that’s not an exaggeration but rather to communicate just how important an effective inventory management system is for the automotive industry. From new and used vehicles going on and off the lot to the smallest vehicle parts, here is the true impact of inventory management on the automotive industry.
Inventory management provides service advisors and client-facing reps with the information they need to answer customer questions and find solutions in real-time. With a well-stocked inventory, dealerships can complete repair orders quicker and experience fewer delays with out-of-stock products. An effective inventory system allows managers to effectively plan for busy seasons and identify any bottlenecks. Quicker turnaround times on vehicles, repairs, and services ultimately lead to a better customer service experience for valuable clients – a win-win for everyone!
While having a well-stocked inventory can quickly fulfill customer orders and reduce lost opportunities, having an excess inventory of parts that don’t move ties up capital and space. When this happens, dealerships must find a way to get rid of excess inventory through discounts, which impacts profit margin. An effective inventory management system looks at historical data combined with real-time information on quantities for more accurate demand planning. This avoids the scenario of holding obsolete inventory and increases a company’s profit potential
Time and processes
Good inventory management helps with moving vehicles through the service bay and in front of customers more quickly. Real-time updates on quantities and availability make for a smoother process and save time. Inventory management is an integral part of the daily process and internal operations of a dealership. Without an effective system, things can easily fall through the cracks and create a domino effect within the business.
How Workflow 360° can help
When it comes to inventory management in the automotive industry, when there is a lack of integration between departments, it becomes difficult to translate revenue into profit. The problem here is not necessarily a lack of communication within departments, but rather the sales and service process is eating up too much time and more resources than necessary.
Workflow 360˚’s Production Efficiency Platform can help lower the cost of inventory and production with:
- Real-time Reporting: From the sales team inquiring about a vehicle to communication between service technicians and the parts department, updates in real-time ensures that everyone connected to the RO is in the know with accurate information.
- Customization: Workflow 360˚’s flexible platform allows dealerships to fine-tune the details they need to operate efficiently and meet customer demands. This addresses the needs of dealerships to evolve with the industry and adapt to the growth of their business.
- Streamlined Communication: Each department is connected to one system for seamless communication. This prevents issues from falling through the cracks, identifies where constraints are happening, and allows managers to continuously improve their department’s processes.
Our company is about the PX, the people experience – doing whatever it takes to make your jobs less complicated. Workflow 360° frees you from inefficient processes, allowing you to focus on the critical components of your job.
Request a demo today and see how Workflow 360° can help you achieve a better workflow.