Organization and Process are the keys to an Effective Core Program
Introducing Marie Kondo
Have you heard of Marie Kondo, founder of konmari.com? Take some time this month and google search personal organizing. I think you will be impressed at the empire she has built, helping regular folks organize their lives. Why? When we organize, life becomes simple since we are not bogged down in clutter. We don’t waste time looking for things. We can make decisions more effectively, and we have a clearer vision of what we need and what is truly important.
Can you see a parallel between our personal lives to our business organization? Who is the organizer in your business? Who is the OCD type person looking at your overstock and underperforming inventory? Who looks at your QOH (quantity on hand) and DOH (days on hand) for vehicle stock and loose parts inventory? You could be sitting on parts that you should core out and not affect your “In Stock” selling stats.
At my former business, Bill’s Auto Parts, we always got high marks on being neat, tidy, and organized. That translated to PROFITABILITY. We continually tweaked every aspect of our organization, and when we finished, we went back and re-tweaked. I never, ever, ever wanted to hear those fateful words, “We Have Always Done It This Way.”
Embrace a “Neat and Tidy” Mentality
Have you moved lately? Whether it is your home or business, moving can either be something to dread or an opportunity to thrive. Moving forces you to recognize your ability to remove the emotional pull (whether a family portrait or an a/c converter sitting on the shelf for the last ten years) and make decisions based on data. We need to move past the emotional aspects and focus on creating a “Neat and Tidy” business operation.
Commit to Turn Over Core Inventory on a Regular Basis
Let us help you make room for new inventory and clear out dead stock. Use the buying stats in your YMS to determine what parts can be cored at dismantling? Turn Cash and Turn inventory utilizing one of your greatest resources: a dismantler with the tools and knowledge to pull parts at the optimal level in the dismantling bay.
Cores, Catalytic Converters, and other commodity products are subject to price and demand fluctuations. Fruit that stays on the vine too long goes bad, and then it smells. Let’s clean up our overstock and non-performing inventory and turn it into CASH FLOW to buy more inventory.
The Name of the Game is Turning Inventory
“Turning Inventory” is how money is made in 2021. Back in the 1930s, time didn’t make that much difference. Cost of Goods and overall expenses were significantly lower. Selling a part from a vehicle sitting on the lot for ten years was something to celebrate. Celebrate?? Oh my goodness, I would have a heart attack. Most of us are looking to break even in 90 days. I repeat, we make money on the turn, not an endurance contest on how long we can keep the product.
Automobiles are one of the most recyclable products on the planet. Our role in the Automotive Supply Chain gives us an incredible opportunity to monetize many products. Which products and how well we organize and harvest them will make or break us. The cost of goods on end-of-life vehicles has never been higher. Let’s work together to increase revenue.
Questions on QC Counts? Contact Paul the “Recall Guy” at firstname.lastname@example.org or 401-458-9080
Katie the “Recall Gal” and Paul the “Recall Guy” represent the RAS Recall Team. Their Mission is to rid the planet of defective Airbags.
Want to join the Mission? Call our Recall Team 877-829-1553 x 160