WHAT AREAS CAN YOU IMPROVE TO INCREASE PARTS SALES?

To get a better idea of where the industry is when it comes to its parts operations, Farm Equipment Magazine surveyed dealership parts managers and general managers in mid-December and asked industry expert George Russell of Currie Management Consultants for his perspective on the results.

In his overall analysis of the survey results, Russell says, “What I see here is a mix of good and bad practices. Generally speaking, I would say the industry is doing fairly well when it comes to its parts operations.” At the same time, he concedes there are some areas that need some attention. Currie recommends that dealers monitor these items, which can be accomplished through the use of a dealership business management system such as ASPEN:

Where part sales originate
How parts are priced (eg internal vs. external)
Parts metrics: inventory turns, fill rate and parts absorption (See the ASPEN screenshot below)
Tracking lost parts sales

The survey revealed that about 55% of dealers track lost parts sales, which Russell says “usually requires systems that more sophisticated manufacturers have to help the dealer order parts automatically.” Access to parts ordering programs for suppliers such as AGCO, CNH Case New Holland, Deere, Kubota and Bobcat from the dealership management system tie all of the data together, making it accessible under one program. See more about supplier integration with ASPEN.

See the full article in Farm Equipment online.