New to a parts manager position

[Ranger505]

I'm new as a parts Manager Ive been in the business for 8 years this transition is tuff for me they pretty much just threw me in with no proper training. First question is there a way to determine by services gross profit and parts gross to determine how much we are contributing to the service dept Also the GM wants to know how parts is doing basically we have a monthly meeting and we talk about gross percentages/ general parts. Any recommendations on a report to email him monthly ?? Any advice i would appreciate thanks.

[JoeRocket]

What computer system are you using? Reynolds? ADP?

[XDCX]

Ranger505 - Welcome to DealershipForum.

In my experience most GMs come from a sales background and only have a limited knowledge of how the Parts Department operates. That's not necessarily a bad thing - once you get the hang of the job it means you'll likely be left alone to run your department. (That's a luxury the New Car Manager, Used Car Manager and F&I Manager probably don't have. )


Concerning a report, if it were me I'd create a one page report that you provide monthly to your GM that details the following:

• Parts Department Gross Profit
• Parts Department Net Profit
• Total Parts Inventory
• Total Parts Inventory over 12 months old

In fact, if you're industrious you could gather the above information for the past 12 months and list it as a graph.

I'm sure there will be others who can share their experiences.

Congratulations on your new job and props for having the good sense to ask advice from others who have already been through what you're going through.

[Ranger505]

Im on Reynolds. Thanks for the advice, How would i set up a Graph with microsoft ?

[JoeRocket]

Do you have access to 0422?

[Ranger505]

I sure do !!

[XDCX]

Originally Posted by Ranger505

How would i set up a Graph with microsoft ?

My recommendation would be to use Microsoft Excel. Here's an example of a graph from Microsoft's Template Site that could be easily adapted to meet your needs - click here

You may also want to check out some of the FREE MS Excel templates that AutomotiveProfit.com offers. Here's a link to their site - click here

[JoeRocket]

Originally Posted by Ranger505

I sure do !!

0422 will give you your gross numbers and percentages both in total and also for each catagory. It's a great place to start. It will also break down your expenses.

Not quite sure about the "determine how much we are contributing to the service dept" part. Is he wanting to know how much of your total sales are Service driven? Or is he looking for the repair order labor to parts ratio?



One thing I would insist on is receiving proper training. The job is very complicated and it doesn't take much to whack out a Parts Dept. No training is setting you up for failure, IMO.

[Ranger505]

He has mentioned total sales are Service drivenas well as the repair order labor to parts ratio thanks for the help

[JoeRocket]

You can determine the Service Dept sales as a percentage of total sales and labor/parts ratios with 0422 pretty easily.

[XDCX]

Originally Posted by Ranger505

He has mentioned total sales are Service drivenas well as the repair order labor to parts ratio thanks for the help

It sounds like you have a pretty sharp GM - he's asking some really good questions.

Concerning the Service Department's portion of the Parts Department's total sales, that figure can vary widely depending on whether the dealership has an active wholesale parts operation.

Additionally, some OEMs credit a portion of the Parts Department's Gross Profits from service drive sales to the Service Department. As I recall, GM's Financial Statement includes this cross-department gross transfer. Chrysler's Financial Statement, by contrast, does not transfer gross between departments. I'm not sure how the other OEMs handle that issue.

[XDCX]

Originally Posted by JoeRocket

One thing I would insist on is receiving proper training. The job is very complicated and it doesn't take much to whack out a Parts Dept. No training is setting you up for failure, IMO.

Great comment.

[Ranger505]

I think he is just checking to see if i know. I apreciate all the info. can you give me an example JoeRocket thanks

[XDCX]

I received the following email and wanted to add it to this thread:

I view your site daily. I am a vendor. I read Ranger505's post about being a new parts manager and would like to help him get started.
I will provide a copy (with a key to extend the trial period) of a tool I wrote to view inventory metrics and some specific information as to how he can make his Reynolds system work best for him. At no charge.

XDCX, you were right. It's good to see someone with the intelligence to seek advise from others.

Ranger505, if you're interested in taking advantage of PartsEdge's offer just add a post to this thread and I'll send you a Private Message with the contact person/phone number at PartsEdge.

Here's a link to the PartsEdge website - PartsEdge.com

[Ranger505]

Yes sounds great thank xdcx