By Sara Hey posted on February 28, 2025 in Best Practices – Rural Lifestyle Dealer
How to Stock the Right Parts Without Losing Your Mind
Running a parts department is no small task. It’s the first impression for many customers, the lifeline for your service department, and can sometimes feel like a juggling act. Some days, you’re trying to make everyone happy while keeping a thousand spinning plates from crashing to the ground. But don’t worry. Getting your parts department running like a well-oiled machine comes down to three simple processes: stocking the right parts, knowing when to add or drop inventory, and maintaining proper stock levels.
Let’s break it down so that it won’t make your head spin.
- Stock the Right Parts: Your “Fill Rate Out of Stocking Inventory” Matters
Your parts department has one big job: making sure customers and your service team get what they need when they need it. This is where your fill rate out of stocking inventory comes in. Think of it as your batting average for having the right parts on the shelf. A good fill rate means fewer annoyed customers, fewer emergency orders, and way less stress.
To calculate it, subtract emergency purchases and customer orders from the cost of parts sales, then divide by the cost of sales plus lost sales.
Aim for a fill rate in the high 80s to low 90s to minimize “we don’t have that part” situations that no one enjoys.
- Know When to Keep or Kick Parts: Phase In and Phase Out Like a Pro
Your parts inventory is like a service technician’s toolbox. Essential tools—like wrenches and sockets—are always within arm’s reach, while specialty tools that only come out once a year stay in the bottom drawer.