Overstock Cars.com

[Kenneth]

Toomany cars in stock? Let us take them off your hands. Many manufacturers, importers and car dealer companies face the same challenges, overstock being one of them. Instead of struggling with the same issue over and over again, you can count on us.

When your inventory is overpowering, it slows you down. Ultimately, partnering with Andex and becoming our supplier, is a solution to reduce your overstock. Maximise your sales opportunities and enjoy working together with a trusted and reliable partner in the automotive industry.

Did you know that nearly every single car will run through an auto auction at some point in its life? Sometimes more than once! There are a great many reasons why cars hit the auction block, many of them while still clean, young and healthy. For example, lease turn-ins and trade ins, often these clean, low-mileage cars end up at the auction. Other examples of clean auction cars are former rentals, zero mileage showroom floor models and dealer overstock. Cars like these finding their way to the auto auction is how dealers like Auto City get a vast majority of our fleet.

The auction itself only happens once a week, every Wednesday. The rest of the week, the auctioneers are off at other auctions while the good folks at Manheim are taking in new inventory, prepping cars for the line-up and so on. (This is a very intricate and complex business!)

And no, not every car is a gem. There are plenty of junkers. Those cars gotta go somewhere too. Be it too old, too high mileage or too beat up for any reputable dealer to pick up. Many of them are auctioned off to parts vendors, salvage yards, or just someone willing and able to put in the time required to make the car like new again.

The positive news is, there are actionable steps you can take to tackle surplus and obsolescence, ultimately driving your profitability. Here are 6 best practices that you can implement to improve operational efficiency at your dealership.

Begin by pinpointing problematic inventory. Compile a list of parts consistently overstocked, items frequently sold at a discount, and those prone to obsolescence. Then, assess each SKU's turnover rate, delivery times, profit margins, and storage costs. This analysis helps weigh the cost of inventory against the risk of obsolescence, highlighting areas needing attention.

For auto parts overstock with low sales prospects, the solution often involves disposal, though not necessarily discarding them outright. Explore options such as selling to customers or other service providers, disassembling for reuse, reaching out to neighboring dealerships, utilizing return programs from manufacturers, or using them for training purposes.

Rather than solely monitoring for obsolescence, it's crucial to address underlying inventory management problems. Common issues include overly optimistic sales forecasts, communication gaps between departments, technological shifts, vendor challenges, inaccurate records, and inadequate planning. Identifying and rectifying these issues is important for long-term efficiency.

Inventory management is prone to errors, particularly during peak seasons. To minimize mistakes and tackle overstock and obsolescence effectively, focus on improving procedures, organizational structure, conducting more frequent inventory counts, enhancing forecasting accuracy, and refining ordering processes based on turnover and delivery times.

Learn more about our inventory reorganization services.

Leverage data analytics tools to gain deeper insights into inventory trends, customer preferences, and market demand. By analyzing historical sales data and forecasting future demand more accurately, you can optimize inventory levels and minimize the risk of overstock and obsolescence.

Establish a culture of continuous improvement within your dealership's inventory management processes. Encourage feedback from staff members involved in inventory handling. Regularly review and refine inventory management procedures based on performance metrics and feedback. By continuously seeking ways to enhance efficiency and adapt to evolving market dynamics, you can reduce the risk of surplus auto parts inventory and improve overall operational effectiveness.

Remember, identifying the root cause is imperative for implementing the right solutions. If you need assistance in diagnosing and resolving inventory challenges, are looking for expert training for your team, or need help performing inventory counts and evaluations, our team of automotive inventory professionals is ready to help. Contact us today for expert guidance.

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