Most dealers write down inventory in stages as they see inventory going stale and AFTER they have done whatever they can do to liquidate it for real dollars.
A couple of things to keep in mind:
- Inventory turns numbers can help to gauge operational efficiency.
- Identify items that are stale and liquidate or write down value.
- EView for usage and last purchase date.
- CEO Juice Alerts/Reports to identify stale items.
- Managing stock min and max with the Inventory Logistics Console.
- Using the ECI Devaluation Utility.
EView for Stale Items
CEO Juice Alerts
Working with Technician Car Stock:
ID72 - Tech Car Stock, Stale Highlighted. This report will show management a summary report of stale inventory with total dollars stale for each tech. See this link for more on this alert.
ID694 - Technician Stale Inventory Items Only (subprocess of ID72). Once you are comfortable with this ID72 report, start using ID694 to automate the process of having techs return the stale inventory in their warehouses. See this link for more on this alert.
**After you have this process in place, you can use our ID204 Tech Productivity report for six months and see what the reschedules are for each tech.
ID75 - Inventory Items with no usage in XXX days. This report is not intended to be an overstock report, it is best used to identify dead inventory and to manage end of life inventory. We recommend running this report monthly for all items/warehouses so you can write=off (devalue) those dead items over your fiscal year instead of taking a big hit at the end of the year. More on this alert here.
ID333 - Inventory Aging Report by Warehouse, this report is good for finding things stacking up. More on this report here.
ID335 - Stale Inventory for OPN. Overstock PArts Network, a division of BEO Services, will buy back your stale inventory. More on this alert here.
ID500 - Items in stock at risk of becoming obsolete due to model population, volume decrease. This report is great for finding things where demand is dropping faster than inventory levels. More on this alert here.
ID543 - Potential obsolete item (Per ID500) has been ordered on a PO. This alert works in tandem with ID500, more on this alert here.
ID342 -Alert to Tech when Parts on New Rescheduled Call are Available in Other Warehouses. This alert notifies the tech of parts available for a rescheduled call in other warehouses. More here.
ID393 - Same Part Number Causing OnHold for Parts Twice. This alert will let you know when a technician is unable to complete a service call as they don't have the needed part, you can then add this part to the tech's car stock to avoid the situation in the future. More here.
ID629 - Parts Required on Incomplete Call. This alert will provide a regular report showing all the parts that techs were missing in their cat stocks and were therefore forced to reschedule. More here.
ID863 - Call On Hold for Parts (WP) and Equipment Carcass Available. This alert will advise when a call is placed on hold for Parts and you have equipment of the same model awaiting parts harvest. More on this alert here.
Setting Stock Min and Max
We also recommend using the eAuto Inventory Logistics Console to help manage min/max. Ensuring your min/max is set correctly per item will help with keeping the right amount of stock on hand.
See this link for best practice on using the ILC.
ECI Inventory Devaluation Utility
The Inventory Devaluation spreadsheet utility is a tool that provides you with a quick and easy way of updating different inventory costs using inventory cost adjustments.
The spreadsheet updates the following information:
- The item valuation cost is updated to $0.00
- Standard Cost on the item record is updated to $0.00
- The Outcost Group Code is updated to the out cost group you specified on the Inventory Devaluation Utility spreadsheet. The item custom property field is updated with the date the Inventory Devaluation utility was processed.
Set up needed for the Devalue Utility:
- Create an out cost group
- Create an adjustment code
- Create a custom property configurations for items
- Link attribute in custom properties attributes in the item record
- Assign custom properties to records