3. THEY BALANCE TECHNICAL OBSOLESCENCE WITH RETURN RESERVE Technical obsolescence refers to parts with no sales or receipts during a 7-12-month period. Such parts have a 95 percent chance of selling. Compare this number with your manufacturer's return reserve each month. Remember, both the Months No Sale (MNS) and the Months No Receipt (MNR) should be 13 months or greater. Great Parts Managers ensure if the technical obsolescence is more than the return reserve, they accrue the difference and use that amount to scrap obsolescence as they move forward. 4. THEY REVIEW AUTOMATIC MANUFACTURER REPLENISHMENT SYSTEMS DAILY On the surface, manufacturer programs appear to be a can't-lose proposition for a dealership. In sum, the OEM will guarantee a dealer can return suggested parts that don't sell. It gets more complicated, however. Some of these programs can be mandatory or come with a minimum compliance requirement. Dealerships can find themselves overstocked or receive guarantees on parts that will never be sent back. Great Parts Managers review their manufacturer program proposals every day to remain compliant. 5. THEY USE TECHNOLOGY TO HELP STREAMLINE COMPLEX TASKS Many Managers we spoke with this last year streamlined their Parts Manager's day-to-day tasks with technology to create more time for proactive working. There are so many moving parts (pun intended) in a dealership that it's difficult to work proactively while also dealing with the complexities of running a parts operation. Dealership management teams from thriving operations look to first identify areas of weakness and potential growth WITH their Parts Managers, and then implement technology that best supports them and the bottom line. We often see Parts driving profits for the entire dealership once they are equipped with the correct tools. JANUARY FEBRUARY 2023 || FIXED OPS MAGAZINE 55http://Customlinings.com