June 23, 2020

What benefits does a spare parts management system provide to your business?

Auto parts vendors and shops have a lot juggle: for one, there’s so many vehicles on the market, each of them with an incredibly complex internal system of different components. Two, even with a thorough knowledge of automobiles and their parts, there is still the problem of how to set up your spare parts shop so that you can manage your entire business effectively. The role of a spare parts management system is seen here:

Improved stock management with ABC analysis

As anyone in the industry knows, some auto parts are sought more than others. Just like in any other business, it’s important to identify and manage your most important assets. One of the established way to do this is to implement an ABC analysis. Here’s how to separate your parts into three distinct groups:

  • A Parts that make up 80 percent of all parts used, but usually take up 20% or less of inventory stock
  • B Parts that make up about 25 percent of all parts used, but take up 30% of inventory stock
  • C Parts that make up about 5 percent of all parts used, but take up 50% of inventory stock.

Once you’ve done this, you’ll be able to discern which parts need to be reordered and restocked the most often, as well as which don’t. A spare parts management system will make this process much easier, not only when it comes to calculating these percentages, but with automation of some tasks such as reordering.

A barcode system for easy inventory management

As already mentioned, keeping track of the thousand different types of parts, can be a daunting task. Implementing a barcode system will help your shop organize and manage inventory efficiently and accurately. Such a system would help you enormously not only because physical inventory processing through different devices would be easier, but you’d also have all the information stored digitally.

An online store integrated with your spare parts management system

Online sales show no intent of slowing down, and now’s the time to get in on it. For those customers who know exactly what they need or would rather not shop at a physical location, it’s the perfect option. And setting up an online spare parts shop is easier than it sounds: most e-commerce solutions can easily be integrated with a spare parts management system. From then on, your web shop will be synchronized with your software solution and the other way around.

These are hardly the only functionalities we could discuss – an item master, OEM integrations, detailed reporting and many others are arguably just as important. Explore our dedicated spare parts page to learn more about the opportunities DealerBox presents to your auto parts shop.

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