Parts Organization

We have explored the parts sales functions, the warehouse and all of the inventory management requirements in a parts business. We have discussed purchasing and expediting as well as shipping and receiving. We have addressed the standards of performance and best practices. Now we need to expose you to the structure of the department that performs this critical work.

Statistics are the foundation of everything that needs to be done. What is the level of parts sales? How much of the sales is from customers on the telephone, or over the counter? How about the service department in the shop or the field? And then we have transfers to and from the other stores in your company. Initially, and commonly the measures used are financial. This class exposes the flaws in basing the organizational structure and headcounts strictly on the sale revenue.

We look at the price per part sold. The size and weights of the parts sold and received, involves recognizing that there is a difference in the labor requirement, the number of people required to perform the work. The unit price per parts number and the quantity of parts sold is a critical measure that this class will deal with in detail.