In this article we will analyze 3 common problems in the Aftersales Department that can greatly affect revenue.
Problem 1: No control of parts movements between Parts and Service
Parts used by the Service Department are taken from inventory without any kind of control. This leads to 2 possible situations:
- Parts remain in stock until the repair order is billed. This means that your inventory reflects parts that are actually not available.
- Parts get lost due to lack of control.
Both situations can lead to stock disparities as well as lost sales.
Solution:
Use internal parts vouchers to obtain complete traceability of the parts, which prevents both problems. Internal parts vouchers function as internal invoices and are issued by the technician; they specify the type and quantity of parts needed for a job. The Parts Department receives the internal voucher, delivers the parts, and issues another internal voucher that is assigned to the Repair Order. Both vouchers are recorded in the management system in order to ensure that the relationship between Parts and Service is transparent and 100% auditable.
Problem 2: Role overlap and job delays
If technicians from the Parts Department have to load purchase invoices into the system, they are wasting time that could be invested in the specific tasks for which they are trained.
Solution:
One solution is to hire administrative staff so that technicians can dedicate their time to service and repair tasks. This improves productivity and efficiency, which translates into higher profitability.
Problem 3: No monitoring of the dealership’s processes
The Service staff fails to input data in the system; the Principal and Department Managers don’t have specific information and find it difficult to control the business.
Solution:
If technicians are trained in the use of the DMS and record every job they perform, administrative gaps will be avoided and essential information provided to generate performance reports. This helps management detect problems, revert potentially damaging situations, create strategies, and improve profitability.
