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Automotive dealership inventory management is something that is talked about often, but is exercised in moderation. Managers that can properly manage new and pre-owned inventory levels are a key component to successful dealerships accross the country. In some cases we see dealers that have managers that know how inventory should be managed, but have their hands tied by the dealer when it comes to creating quick turn. This is a behavior by dealers that have had managers running a department that had either limited knowledge on how or their pay plan was not condusive to adequately manage inventory levels, which can create water and turn issues in either example. Dealers need to define immediately on turn time to the manager that is responsible and make sure that he/she has the understanding of turn time and wholesale loss control. Without a plan in place there is an inconsistancy that will assure inventory problems and the cost could be significant. |
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