Make DMS Parts-Perfect

I'd like to discuss two modifications that users of the Reynolds & Reynolds Era Dealer Management System (DMS) can make, which can affect parts department performance, productivity and profitability.

The first modification is a setting change. The one I'm referring to affects the on-hand quantity of a phased-in part, and if left to the default setting could actually prevent a part from being ordered, even though it has met established phase-in criteria.

This setting is controlled from the 2324 screen, option 7 of the DMS. If you have not paid any attention to this setting, when you access it, if set to the default, it will read:

Minimum order quantity of “1” for stock orders (Y/N) N

I recommend that this setting is changed from the default of “N” or No to “Y” or Yes. What's the difference? If left to “No” the stock order will not suggest an automatic order for zero on hand stocking parts if the average demand quantity is less than one, even though the parts meet the phase-in criteria.

However, I don't suggest that the parts manager arbitrarily change option 7 to a “Y”. First, the parts manager should run a preliminary stock order prior to changing the setting and then run another sample stock order after the setting has been changed.

The difference can be an eye-opener. Depending on parts-department activity, when the second stock order is run after changing option 7 from “N” to “Y” it can potentially contain hundreds to thousands of part numbers that have phased in, but will not automatically order because the average demand is less than 1.

If the parts manager does some investigating he or she usually finds out that the zero on hand parts now appearing on the sample stock order, after making the setting change, are the ones that never seem to be in stock, necessitating an emergency purchase or special order to meet customer demand.

The second modification involves setting up the Quantity Unit Pack (QUP) setting as a Per Job setting. The setup would be used for brake rotors, shocks, etc.

This procedure is not a true “Per Job” as the setup will always order quantities in multiples of the QUP, whereas a true “Per Job” looks at existing on hand and on order quantities and will only order up to the “Per Job” setting.

Nevertheless, this may be preferable to using the “Min/Max” setting.

The recommended procedure is to set up the master tape loading so that it does not update the QUP field. Existing QUPs will be retained. Any new part numbers added with QUPs will pick up the necessary QUP info because they add from the on-line master, and not the update tape.

If you are using source by movement and have the Update Code set to “1” for Option 11 in Screen 2323 some parts could get automatically moved into other sources.

Gary Naples is a parts consultant to dealers and manufacturers. He's authored two books on parts management. He's at 570-824-1528/[email protected].