Our Blog

Value of Effective Parts Management

By Walter J. McDonald

The wise and skillful Parts Manager learns how to satisfy, simultaneously, the conflicting interests of his two primary constituents: dealer ownership and dealer customers. Customers demand high off-shelf fill rates which tend to increase inventory investment. Dealer Ownership demands high asset productivity. The challenge is to do both extremely well. The figure below illustrates how… Continue reading Value of Effective Parts Management

Surviving the Supply Chain Crisis

By Walter J. McDonald

By now everyone on the planet is feeling the impact of supply chain disruptions. And, for the machinery dealer, this becomes both a problem as well as an opportunity. But, to survive, the dealer needs to strategically work around these challenges. The problem with manufacturers extending lead times from weeks to months, makes timely end-of-lifecycle… Continue reading Surviving the Supply Chain Crisis

Parts Management Operations Improvement

It’s hard to think of an important aspect of dealer management that is more neglected than parts operations management training. Your Parts Manager can be responsible for warehouse security and safety, inventory control, picking, and shipping efficiency, prompt response to “back counter” service department requirements, parts warranty claims, parts marketing and sales, and an attractive… Continue reading Parts Management Operations Improvement

Parts Margin Improvement Tools: Customer Ranking Reports

An incredibly useful tool to improve gross profit margins is the customer ranking report. This report is run for parts customers and separately for service customers. The annual customer purchase history was ranked by Gross Profit Margin Percent. Customer $ Parts Sales $ Gross Profit Gross ProfitMargin % Always show Gross Profit Margin to at… Continue reading Parts Margin Improvement Tools: Customer Ranking Reports

Effective Parts Management– What to Measure and Monitor

The following parts performance metrics are considered essential to managing a profitable parts business. Each analytical routine should be readily available from your software vendor. By monitoring these data points daily or weekly, your Parts Manager can take corrective action immediately, not at the end of the month. Again, why wait until statements are published… Continue reading Effective Parts Management– What to Measure and Monitor

Being Digital: Plan, Move, Win!

By Dr. Nick McGaughey, CPA

Being digital refers to technology connections, integrations, and interactions between people, processes and data, functions, and products/services (things). Being digital is about gaining a visible edge in the war game with competitors to capture as much time, attention, and money from the marketplace as possible. This article explores some aspects of being digital. Being digital… Continue reading Being Digital: Plan, Move, Win!

How to Avoid 7 Deadly Sins in Used Equipment

By Walter McDonald

Your Used Equipment Business Can Be Profitable If you have been losing money or just breaking even when you sell your used equipment now is the time to audit your operations. Selling trade-ins or former rentals can be a big profit challenge. If you have more than fifteen rental units that have either a poor… Continue reading How to Avoid 7 Deadly Sins in Used Equipment

Industry Executive Reviews

Service Management – Machinery Dealer Manager's Handbook

I don’t know how much further Walt can take his guidance to our distribution channel and businesses, but I keep reading and learning. As soon as I start feeling too comfortable, the business evolves again and I better adjust or lose ground.John M. Vandy I carefully read through your latest release, “Service Management: The Machinery… Continue reading Industry Executive Reviews

How to Field a Winning Team

By Walter J. McDonald

Collaborative Relationships Between Dealer Sales and Product Support Are Essential to Overall Success From the Sales Manager’s perspective, the primary objective of a machinery dealership is to increase market share, profitability, and customer service. But, achieving these goals is often frustrated by continuous conflict between sales and parts & service. When you objectively examine these… Continue reading How to Field a Winning Team