Your Surplus Inventory is on Fire!-Your Surplus inventory is on Fire!

Video Transcription

Video Summary

In this video, Bill Mays discusses the importance of effectively managing surplus inventory in order to avoid losses and excessive costs. He emphasizes the need to avoid stocking parts that do not sell, as they tie up capital and do not satisfy customers. Mays suggests strategies to reduce surplus inventory, such as stocking parts based on customer satisfaction and increasing the throughput in the service department. He also explains the concept of a balanced dealership, where all departments work together to achieve repeat customers and high return on assets. Mays highlights the challenges faced by parts managers, including obsolescence, wrong mix of parts, excess stock, marketing, computer systems, and execution changes by original equipment manufacturers. He provides insights on retail inventory management, including the lifecycle of a part and the importance of breadth and fill. Mays also offers tips on forecasting, reducing inventory, and improving just-in-time processes. Lastly, he emphasizes the importance of continuously evaluating and adjusting inventory management strategies to ensure profitability and customer satisfaction.

Keywords

surplus inventory management

avoiding losses

excessive costs

stocking parts

customer satisfaction

increasing throughput

balanced dealership

parts managers

retail inventory management