Resources and best practices for machinery dealer development

Our blog has a mix of articles written by our founder, Walter McDonald, and by other industry experts, business owners, and equipment dealer team members. Learn about everything from marketing ideas to tips for successful branch operations to how to retain customers—and everything in between!

Value of Effective Parts Management

By Walter J. McDonald

The wise and skillful Parts Manager learns how to satisfy, simultaneously, the conflicting interests of his two primary constituents: dealer ownership and dealer customers. Customers demand high off-shelf fill rates which tend to increase inventory investment. Dealer Ownership demands high asset productivity. The challenge is to do both extremely well. The figure below illustrates how… Continue reading Value of Effective Parts Management

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Eliminating Obsolete Inventory

By Walter J. McDonald

The two big CASH TRAPS in machinery dealerships are: Old un-sold used trade-in units Obsolete parts inventory. Dealers who launch serious Operations Improvement efforts for the first time often find they have as much as 35-40% of parts inventory value in dead/obsolete stock. This article discusses reasonable and practical approaches to eliminate parts inventory line… Continue reading Eliminating Obsolete Inventory

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Parts Inventory Control and Re-Order Optimization

By Walter J. McDonald

There are three types of Inventory. These definitions will help in your efforts to manage inventory and optimize profitability: A-B-C-D Inventory Control Still Works The old approach to classifying inventory by the way items are sold still works. However, we recommend 13 classes instead of 4 because this aids in determining stocking levels. With your… Continue reading Parts Inventory Control and Re-Order Optimization

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Parts Management Operations Improvement

It’s hard to think of an important aspect of dealer management that is more neglected than parts operations management training. Your Parts Manager can be responsible for warehouse security and safety, inventory control, picking, and shipping efficiency, prompt response to “back counter” service department requirements, parts warranty claims, parts marketing and sales, and an attractive… Continue reading Parts Management Operations Improvement

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Being Digital: Plan, Move, Win!

Being digital refers to technology connections, integrations, and interactions between people, processes and data, functions, and products/services (things). Being digital is about gaining a visible edge in the war game with competitors to capture as much time, attention, and money from the marketplace as possible. This article explores some aspects of being digital. Being digital… Continue reading Being Digital: Plan, Move, Win!

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Effective Parts Management – What to Measure and Monitor

The following parts performance metrics are considered essential to managing a profitable parts business. Each analytical routine should be readily available from your software vendor. By monitoring these data points daily or weekly, your Parts Manager can take corrective action immediately, not at the end of the month. Again, why wait until statements are published… Continue reading Effective Parts Management – What to Measure and Monitor

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