5 Easy Ways to Not Run Low On Inventory In Your Repair Business: Imagine you have a regular customer whose car broke down, and now he needs a quick repair to get back on the road. He wants to pay extra to get the job done in the shortest possible time.
You’re all set to start the repair. You create an estimate, give the task to the technician, and reassure the customer. Unfortunately, you find out that the one part you need for the repair is out of stock!
It is highly unlikely your customer will wait for you to get the part. Has this ever happened to you? If not, great job! Low inventory stocks are a nightmare.
However, you can easily avoid this by doing a few simple things. Let’s look at what those things are so that you can avoid this nightmare in the future.
Keep an Eye on Stock Levels
You’ll want to keep an eye on your stock levels and make sure you’re replenishing them as needed.
This will ensure that you don’t run low on inventory and don’t disappoint your customers.
Make a list of everything that is expired or needs to be ordered and review it every month.
Furthermore, keep track of the auto repair needs in your area and make sure to allocate time for maintenance such as oil changes, filters, brakes, tires, windshield wipers, belts, hoses, and tune-ups.
Another way of predicting low inventory levels is to analyze which parts are used more often.
Monitor Inventory Levels Regularly
It is a good idea to check inventory levels every few days. And no, you don’t need to do it manually. Are you using any auto repair shop software? If not, you’re missing a whole new world full of convenience.
This software is designed to make running a repair business as easy as possible. Whenever you create an estimate, parts are fetched straight from your inventory. This helps you know that you actually have the parts needed for the repair.
This helps you avoid that awkward conversation with the customer where you give them an estimate, only to find out you don’t have all the parts needed for the repair.
Auto repair shop software takes care of mundane tasks such as inventory management. This saves you a lot of time that could be used somewhere else.
Real-Time Inventory Tracking
You can improve the profitability of your business and customer satisfaction by adding a real-time inventory tracking system.
Not having to count stock manually, saves time and money. It’s hard to go back to manual work once you’ve had the experience of using auto repair shop software.
This helps the business avoid the frustration of customers who want an item now and cannot find it. The real-time tracking provides parts availability information to employees. Advances in handheld and cloud technology make it possible to check inventories from anywhere, anytime. All you need is an iPad and an internet connection.
Categorize Inventory Using ABC Analysis
ABC Analysis is a simple yet highly effective inventory management technique that auto repair shops should use to maximize their inventory.
ABC stands for “Always Be Closing,” and the idea behind it is that you don’t have time to carry around large amounts of items or have unnecessary inventory lying around because it takes up space and distracts you from what you should be focusing on.
Inventory can be categorized using ABC analysis into three categories:
- A- high-demand items that are always in stock
- B- low-demand items that are kept in stock for emergencies
- C- items that are usually not needed by auto repair shops.
You should focus your efforts on the A category before moving to the lower priority B and C categories.
If auto repair shops put enough effort into the A category, they’ll never have to worry about having items run out of stock since this category makes up most of their sales.
Once auto repair shops make sure that the A category is always stocked, they can focus on lower priority B and C items for maintaining a healthy inventory.
Repair shop owners should not hesitate to close an item if it seems like there’s no more demand for that particular part or tool. This will free up storage space, and auto repair shop owners can use that money to buy higher-demand parts or tools instead.
Auto shop software has made managing auto repair businesses so much easier because it lets auto shop owners quickly access information to ensure they never run out of stock.
Plan Ahead With Part Suppliers
One of the key ingredients to a successful business is being able to plan ahead. One way of doing this is by making sure that you have enough inventory for your business going into the future.
For you, this might mean knowing which shocks and fluids you’ll need the most based on your past repair history.
Take time to request quotes from potential suppliers, compare prices, and ultimately decide who you want to work with.
Auto repair shops and part suppliers often work together. You should stay in touch with part vendors to know when they receive shipments of auto supplies so that you can arrange to pick-up them up as soon as they arrive.
Auto parts suppliers should be your first line of defense against inventory shortages. Want to go one step further? Partner up with such vendors integrated right into auto repair software.
This way, the software will alert you when stock levels need replenishing.
Planning and partnering with auto repair shop software providers help auto shops avoid running out of inventory. If you’re in the market for auto repair shop software, we recommend that your search include vendors who specialize in auto-repair parts.
One easy way this is accomplished is by using integrated vendor management solutions offered by auto repair software. They automatically notify you when stock levels need replenishing, so there are no surprises or unexpected shortages.
In today’s modern age, you need to use every advantage you have to stand out from the crowd. There are over 100,000 small repair shops in the US. What makes yours different?