ESSENTIALS OF PARTS OPERATIONS Monday January 1, 2018 2 min Read The “Essentials of Parts Operations” course begins with a brief check of profitability in the Parts Department. Since national research shows that most Parts Departments are profitable, this course goes beyond the Financial Statement and considers the ROI created by Parts inventory turnover. Using their own system reports, each learner will be able to calculate obsolete inventory – a metric they wouldn’t even know using standard measurements. With this new information, the course builds to an explanation of “stocking parts correctly” based on their current inventory situation. Supporting the Service Operations is emphasized as learners create actionable plans to improve Service Department integration. The course also touches on technical subjects by defining variance and showing learners how they can eliminate variance by using specific “motion identifiers” that are checked daily, instead of using traditional annual audits. A final case study brings the entire course together by helping learners determine next steps for implementing best practices in their Parts Department. TARGET AUDIENCE OEM Dealer Contact PersonnelParts management, including Parts Inventory Managers and Fixed Operations ManagersParts Counterpersons aspiring to be future ManagersGeneral Managers TOPICS Sales, Gross, and Return on Investment (ROI)Stocking the “correct” inventorySystem setups: Phase-In, Phase-Out, Depth, and BreadthLost sales analysisReducing obsolete inventorySpecific new ways to support the Service DepartmentMarket strategy for accessories and tire salesDefining consequences of Inventory VarianceDaily “Motion Identifiers” to check for eliminating Variance COURSE PRE-REQUISITES None LEARNER PREP Dealership Financial Statement, pre-class input sheet, or sample statement providedParts month-end reportsSystem inventory setups and/or Specifications Listing reportInventory Aging report LEARNING OBJECTIVES FOCUSING ON APPLICATION AND CRITICAL THINKING SKILLS Evaluate a Parts Department by utilizing numbers from the Financial Statement to discover profitability.Create a defined process for special ordering of parts for customers to reduce non-stock aging.Propose ways to incorporate Service Department best practices to better support departmental operations and profits.Establish a daily process to review reports to be proactive towards detecting inventory Variance. university Related Market Insights Uncategorized EV Market Monitor – August 2025 5 min Read Uncategorized Used-Vehicle Inventory Sets New High for 2025 as Sales Continue to Climb 3 min Read Uncategorized CDP 101: What Is an Automotive CDP and Why Should It Matter to You? 6 min Read