{"id":63577,"date":"2023-10-17T16:59:26","date_gmt":"2023-10-17T16:59:26","guid":{"rendered":"https:\/\/www.revolutionparts.com\/?p=63577"},"modified":"2023-10-17T16:59:30","modified_gmt":"2023-10-17T16:59:30","slug":"the-haunted-warehouse-how-to-manage-the-ghost-of-obsolete-parts","status":"publish","type":"post","link":"https:\/\/www.revolutionparts.com\/blog\/the-haunted-warehouse-how-to-manage-the-ghost-of-obsolete-parts\/","title":{"rendered":"The Haunted Warehouse: How to Manage The Ghost of Obsolete Parts"},"content":{"rendered":"

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Are you spending too much time uncovering aging and idle inventory under films of dust? Trying to move aging inventory off the shelves and into the hands of car owners can be a challenge, especially when you don\u2019t know the true state of your inventory.\u00a0<\/span><\/p>\n

Inventory management is essential to the success of your parts business, especially when it comes to tackling the biggest inventory problem, high obsolescence. Without clean inventory data, you can\u2019t effectively determine how much obsolete inventory you have or where you need to make adjustments to meet customer demand. Unclean data leads to inaccurate ordering and, eventually, poor stock levels, which leaves your business with lost sales opportunities and pile-ups.\u00a0<\/span><\/p>\n

So, if your parts shelves are haunted by auto parts that seem like they\u2019re past their prime, what can you do to lower obsolescence and still turn a profit?<\/span><\/p>\n

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The Ghost of Obsolete Inventory<\/span><\/h2>\n

Perhaps the biggest nuisance to any parts seller is <\/span>obsolete inventory<\/span><\/a>. With yearly turnover, vehicle parts have a short shelf life. The longer they stay on those shelves, the more they end up costing you. Money tied up in aging and idle inventory reduces your incoming cash flow and often reduces sales opportunities, especially when dealing with newer buyers with younger vehicle models.\u00a0<\/span><\/p>\n

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Signs Your Shelves Are Haunted By Obsolete Inventory<\/span><\/h2>\n

How do you know your inventory has a higher percentage of ghosts? Well, there are a few tale-tell signs.\u00a0<\/span><\/p>\n

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Slow-Moving Parts<\/b><\/p>\n

How many items on the shelves have been sitting there for months or years? How often do you see customers intentionally searching for those parts? If you have a high percentage of items that get little to no attention, they\u2019re not likely to fly off the shelves, making them slow-moving.\u00a0<\/span><\/p>\n

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Inventory Audits Have Mismatched Numbers<\/b><\/p>\n

With unclean data, every inventory audit produces different results. You may think you have an obsolescence rate of 15% at first glance on paper, only to find out after your yearly or monthly audit that you actually have a 50% obsolescence rate. If you find that percentage is rising and falling like an EKG graph, you\u2019ve got a strong obsolescence problem.<\/span><\/p>\n

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How to Exorcize Obsolete Inventory<\/span><\/h2>\n

So, if obsolescence is such a horror show to deal with, what are some of the solutions to reduce it or, even better, profit from it?\u00a0<\/span><\/p>\n

With the rise in older vehicles being kept on the road, more people are in need of parts that are harder to find. Having obsolete parts in your inventory could be the key differentiator for revenue generation and resuscitating your parts sales.\u00a0<\/span><\/p>\n

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Automate Your Inventory Management<\/b><\/p>\n

Without automation, your inventory management processes will fall apart. It will be just as easy for your inventory to go right back to square one without consistent automated processes. Having <\/span>inventory management<\/span><\/a> software can help you keep an eye on how much obsolete inventory creeps up. It can also help you keep track of what inventory to sell at specialized pricing.\u00a0<\/span><\/p>\n

To clear your inventory of a parts graveyard, what should you look for in an inventory management system?<\/span><\/p>\n

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