By Ray Stasieczko, BEI Services – Here Are Some Numbers That Come Directly From Our BEI WordStats ™ Database.

1. Some dealers have a parts inventory value that is more than 12 times their monthly usage. They turn parts inventory less than once per year. An ideal target should be a parts inventory equal to about one month’s worth of usage.
2. Once an inventory SKU has been left unused for 18 months, 83% of it WILL NEVER BE USED AGAIN.
3. $22 MILLION, that is the combined value of inventory across our partner network that is over 18 months old! That number is increasing by $60,000 per month, so the problem is getting worse.

That last number is alarming. If you think of the initial number that we track, which is $40 million in parts per month, the $22 million in inventory that’s over 18 months old means that, at some point in the future, most of that inventory will be written off, and your money, and your profit, will take a direct hit. That’s not other people’s money. That’s your money.

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Insight. Action. Profit.