We are excited to announce a new solution to defeating obsolescence in the parts department with the release of our latest feature, the Obsolescence Tool.
We’ve talked to thousands of Parts Managers, and one issue always seems to come up: Obsolescence.
It’s common for dealerships to have older parts on the shelves taking up space, with the average parts department’s obsolescence rate resting around 30%.
The RevolutionParts Obsolescence Tool is designed to help dealers improve their inventory management by helping sell more obsolete parts online. It does this by allowing you to identify, tag, and configure custom pricing for obsolete inventory, then instantly list those parts across multiple selling channels—like eBay.
The RP Obsolescence Tool
Shoppers with older vehicles have unique needs and are not going directly to dealerships for these older parts; instead, their first stop will be online, even before they stop at their local aftermarket sellers.
In fact, 74% of parts sold start with an online search.
Getting your obsolete parts listed online is easy, but getting them to sell is the challenge. Traditionally, the price of these older parts follows the pricing rules you set for the rest of your inventory. This pricing model doesn’t take the age or demand of older parts into account.
Now, with the Obsolescence Tool, you can automatically tag any part that meets the criteria you set for an obsolete part. You can then configure custom pricing rules that automatically apply to all obsolete parts listings.
This helps your obsolete inventory stay competitive online and attract more buyers, meaning you get higher returns on these obsolete parts than traditional methods of reducing obsolescence. With the Obsolescence Tool, your team will be able to sell obsolete parts in higher volume and increase revenue with minimal operational input–managing it all from a single platform.
The Impact of Obsolescence
Keeping obsolete parts in check is crucial as a high obsolescence rate can cut into profitability at the parts department. Older parts may be harder to sell, but they can pile up faster than you may realize. The biggest drivers of obsolescence are often errors in inventory management and an influx of special order parts. No matter how your parts department obtains obsolete parts, you want to get them off the shelves and drive the most revenue from them as possible.
Here are just a few reasons why high obsolescence can hurt the dealership:
- Wasted resources: Acquiring, managing, and storing obsolete parts wastes time and money for the department.
- Excess inventory: Unsold obsolescence can lead to storage issues and tie up capital for the dealership that could be used elsewhere.
- Difficulty forecasting demand: Storing parts that won’t sell makes it difficult to forecast the demand for parts accurately.
Obsolescence is natural in any parts department, but the key is to keep it low. This is where the Obsolescence Tool comes in. This powerful new tool helps sell your aging and obsolete parts so you can clear out this unwanted inventory.
Learn How to Reduce Your Obsolescence
Want to learn how the new Obsolescence Tool can help your parts department offload more obsolete parts? Click the button below to schedule a live demo with one of our eCommerce experts to see the tool in action.