Leveraging Automation to Streamline Your Parts Department
The automotive industry is evolving rapidly, and parts departments are feeling the pressure to keep up with increasing demands and expectations. To stay competitive, dealerships must find ways to optimize their operations, streamline inventory management, and improve communication between departments.
Automation has emerged as a powerful tool to help achieve these goals. As Rick Wegley, Instructor & Consultant at NCM Associates, explains in this blog, leveraging automation in parts departments reduces manual tasks and enhances overall performance and profitability.
Streamlining Inventory Management and Order Processing with Automation
One of the most significant ways automation simplifies parts department operations is through its integration with Dealer Management Systems (DMS). Automating daily tasks such as reporting, inventory returns, and stock orders allows parts departments to free up valuable time for more strategic activities. Wegley explains, “Scheduling certain reports to be created and distributed reduces the number of manual tasks, which frees up time for more strategic work.” This results in fewer human errors and faster, more accurate inventory management.
Automation also helps expedite order processing. For dealerships using programs like Automatic Stock Replenishment (RIM), stock is automatically replenished based on real-time data, reducing the manual effort required to manage inventory levels. With RIM, parts departments experience minimal management involvement in stock ordering—simply reviewing, adjusting, and approving orders—and speed up special-order processing.
Overcoming Barriers to Automation
Despite the many benefits, some dealerships hesitate to adopt automation due to several barriers. Addressing these barriers head-on can lead to smoother communication between departments.
Lack of Understanding and Trust in Technology
Many dealerships fear that automation may be too complex or unfamiliar. Wegley points out, “Fear of technology replacing jobs is one of the biggest barriers, but it’s about enhancing roles, not eliminating them.”
Fear of Job Displacement
Employees may worry that automation will take over their roles. However, the goal is to enhance efficiency and allow staff to focus on more strategic responsibilities. Automation is meant to empower staff to focus on higher-value tasks rather than replace them.
Integration Issues with Existing Systems
New technologies may not always integrate seamlessly with existing DMS systems, creating inefficiencies and frustration. Wegley advises, “If integration issues arise, dealerships should invest in re-training staff or even consider switching technology providers to ensure smooth operations.”
Innovations Shaping the Future of Parts Management
As technology continues to evolve, so too does the potential for automation in parts management. Two of the most significant innovations are Retail Inventory Management (RIM) and Vendor-Managed Inventory (VMI). These tools help dealerships optimize stock levels by providing data-driven insights into the parts that need to be stocked, and the quantities required. By reducing guesswork, these systems also protect against inventory obsolescence.
One of the most exciting developments in automation is the use of robotic delivery systems. These robots deliver parts directly to technicians in the service bay, saving an extra 15 minutes per day. This investment improves service efficiency and pays for itself in the long run by increasing output without the need for additional labor.
Embracing Automation for Long-Term Success in Parts Departments
The role of automation in parts departments cannot be overstated. By embracing automation tools, dealerships can streamline inventory management, reduce order processing times, enhance communication, and stay ahead of industry innovations.
Dealerships that leverage these technologies will find themselves better positioned for growth and success in an increasingly competitive market. If you’re ready to take that next step, contact NCM Associates today.