Approximate time to complete this lesson: 30 minutes.
To begin Lesson one, watch this video (5 minutes, 17 seconds).
Inventory is the record of all the available parts that you have for sale. Having accurately recorded inventory is vital, not only for parts search consistency but for communication within your own company as well.
Inventory management is recording what is important. Essentially, inventory is information. Inventory standards must therefore be consistent. A part may vary from another similar part in price and / or quality so it is important to have a consistent way of describing that part to the customer.
Inventory affects all other functions within your organization:
On a regular basis the inventory specialist will:
In part 1 of this training module we will learn:
The difference between recycled parts and new parts is recycled parts are sold as an assembly of components where as new parts, regardless whether they are new OEM or aftermarket, are sold as individual components.
*Additional components may be included with assemblies. Front and rear bumpers are typically sold as assemblies and include reinforcements and shocks.
While there are some exceptions like remanufactured or rebuilt engines, for the most part recycled parts are sold as a group of components just as you would find them in a vehicle. For recyclers, the vast majority of parts you sell will be assemblies.
Handling parts as assemblies saves you time and money dismantling, storing and delivering parts. Buying an assembly is less expensive than buying individual component parts. Assemblies also save time when it comes to installation.
Let’s look at an example of cost savings: A 2012 Mustang Front Door Assembly with Glass and Mouldings (not including Mirror or inner door panel), average cost of assembly of components = $1295.00. Average costs for each individual component sold separately (Shell, Trim, Filler Trim, Glass & misc. = $2969.14. As you can see, buying each part separately as opposed to buying them as a group is the less expensive option.