Debunking A Major Myth
We need to debunk the misunderstanding of what Idle Parts inventory actually is. Rampant throughout the industry, it’s believed that Idle Parts are only parts that have aged out after 9 or 12 Months-No-Sale. That’s incorrect. Those parts account for only half of the Idle Parts Inventory. The other half, and least understood, are the parts which lack demand, and shouldn’t be there to begin with (Special Order parts unsold, or returned). These are parts which could have been returned on Day 17. They are now a problem on Day 17 – not on Month 10 or 12. These parts account for the other 50% of a dealers Idle Inventory parts problem.
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