Parts Physical Inventory Services
PartsCount by Total Dealer Solutions (TDS) was established in 2003 to meet the automotive dealers’ need for an unbiased, professional third party parts physical inventory. We specialize in the automotive industry exclusively because with specialization comes expertise. We perform inventories nationwide, employing over 300 teams of automotive industry specialists. PartsCount is a highly valued resource for publicly traded dealerships, large dealer groups, and brokers/agents of buy sell transactions because of our accuracy, ability to accommodate simultaneous and short notice inventories, and for our 24 hour turnaround reporting capabilities.
We offer a diverse group of services including:
Annual Inventory Counts
Cycle Inventory Counts
Bar Code Inventory Counts
Manual Count to Bar Code Conversion Services
Parts Department Operational & Profit Analysis
Parts Returns to Manufacturers
Obsolescence Analysis & Liquidation
Parts Department Workshops
Automation Barcode Scanned Inventories
Monthly Reconciliation Services
Leave the inventory business to the experts and focus your staff’s attention on daily business operations. A third party inventory serves as an audit, protecting your dealership from theft, damage, waste and vulnerability to market shifts. The end result is an impartial, precise snapshot of the health and viability of your parts personnel and department. Of particular importance is parts obsolescence and our unique position to identify liquidation outlets and opportunities among our broad customer base.
Auditing hundreds of dealerships nationwide, we’ve seen the best and the worst operating parts departments and everything in between. We make recommendations for instant and long term improvement which will have an immediate and long lasting effect on the efficiency and profitability of your parts department. In fact, the implementation of our recommendations over the course of a year more than covers the cost of the inventory.
Inventory quality and accuracy are dependent upon proper preparation. Approximately 1-2 weeks prior to your scheduled date, a PartsCount representative will conduct a virtual pre-inventory meeting with all of your key personnel. This ensures a smooth running inventory day by familiarizing PartsCount with your staff and facility. We learn about general housekeeping practices, bin locations, storage areas, and go over a thorough pre-inventory checklist.
Blind counts are used to deter and prevent any shortcuts. Our experienced inventory teams of counters, writers and scanners will touch and count all parts in the inventory. The Multiple Count Report, No Count Report and the Inventory Variance Report are produced to review discrepancies. All variances over $0.01 are physically checked. Our service includes a complete review of current work in process, claims and returns, outstanding invoices and pre-paid special orders.
We employ only experienced parts personnel, conduct thorough parts department training and provide above average industry standard compensation. This eliminates a “temporary staff” situation as the same teams of local professionals service our customers and territories year after year. To protect your interests, associates are pre-screened to avoid hiring personnel from nearby, competing dealerships. Our dedicated workforce is a major contributing factor to our accuracy, expediency and overall success.
We don’t ask you to fit neatly into our schedule, we fit into yours. The depth of our management team, workforce and automation allows us to accommodate short notice inventories and multiple locations simultaneously. Our goal is to affect zero impact on your daily operations and maintain complete transparency to your customers. Whether you prefer weekends or weeknights, we can schedule a date and time which best suits your needs.
During our follow up discovery meeting, available 24 hours after inventory, a detailed report is presented and reviewed with your management team. All supporting documents are scanned and the entire report is digital. This eliminates cumbersome paperwork, facilitates data storage and makes it simple to compare and contrast results year after year to ensure constant improvement.
Detailed reports and analyses include observations and recommendations, obsolescence analysis, and a full reconciliation to the general ledger. Reports include:
Physical Inventory Summary – This report summarizes total dollar value on-hand; work in process, claims and credits, core values, outstanding invoices and pre-paid special orders.
Physical Inventory Reconciliation – This report summarizes the variance of the Physical Inventory on hand value to the General Ledger Book value. We compare the difference including and not including the Parts Department appreciation and depreciation amounts up to the inventory date.
Summary and Inventory Operations Analysis – We provide a detailed department analysis. The observations and recommendations in the report are intended to assist you in the evaluation and management of important policies, procedures and controls that affect the Parts Department operations (Profit & C.S.I.) The analysis covers the areas of security, purchase order control, paper flow, shipping and receiving procedures, bin maintenance, obsolescence, storage area efficiency, and special order controls. We also perform an obsolescence analysis. All of the above information can drastically improve parts department operations.
The parts physical inventory, pre and post meetings, operations consulting and value added reports are performed for a percentage of the grand total of the inventory value.
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“You guys aren’t bone, knife and bear skins anymore…There’s a lot of guys out there using way old technology and way old methods and it seems like technology has passed them by. TDS is actually on the forefront of technology and that has been the most helpful thing because that is what we are going towards. I would recommend TDS to ALL dealerships.”
Regional Fixed Operations Director – Roundtree Automotive Group Click Here For Audio
“We really take to heart everything that they recommend. The most valuable feature of their service is their reports and Mark being as thorough as he is.”
Parts And Service Director – Alpine Jaguar, Ft. Lauderdale, FL Click Here For Audio
“They know the business, the parts business, they KNOW IT. I’m very impressed with them all the way around. This is the third parts inventory company I’ve dealt with and TDS seems to be the premiere.”
Parts Director – Ferrari, Ft. Lauderdale, FL Click Here For Audio
“You’re a quality company with great standards!”
Fixed Operations Director – Phil Smith Automotive Group, Ft. Lauderdale, FL Click Here For Audio
“It used to take us 2 ½ days to do one store. Now TDS knocks out 2 stores in one day. The accuracy and speed in which they get it done is so much easier than doing it yourself.”
Parts Manger – Galeana Chrysler Dodge Jeep Kia, Ft. Myers FL Click Here For Audio
“They do a good job. All of their suggestions are very helpful. I would absolutely recommend TDS!”
Parts Director – JM Lexus, Coconut Creek, FL Click Here For Audio
Rushed inventory can mean paying too much for or under-valuing a dealership
Published Feb 6, 2019 by Automotive Buy Sell Report.com (View full article online here)
By Dale Huggins, Total Dealer Solutions
Service parts, fixed assets — such as dealership-owned office equipment, phones, and furnishings – and special tools account for hundreds of thousands, sometimes millions of dollars, of your dealership investment but are often overlooked as a critical part of the typical buy/sell transaction.
You and your team probably spent months or even a year or more working out the details of the buy or sell agreement for that dealership you love. The deal is just about done, and you are already looking forward to taking the long-awaited vacation after you sell, or perhaps you are the buyer, and you can’t wait to include that perfect location and brand in your business portfolio when the deal finally closes.
The date for the contract to execute is scheduled, you are ready to go, one last check of the Asset Purchase Agreement (APA) related to how to handle the parts department inventory and then a flood of questions:
- Are we going to outsource the parts physical inventory or do it ourselves?
- When should we advise the staff that we are planning an inventory?
- Who will represent our interest during the physical inventory?
- Does the APA require that we complete a full inventory of all fixed assets including furnishings and computers as well as the service parts?
Fixed Ops Magazine Article
Since 2004, Fixed Ops Magazine has been the #1 Fixed Operations information source for new car dealership management.