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his is my favorite publication. Two excellent management articles this month [June] on overall dealer performance measurement and on core management. Core management and its contribution to or detraction from profitability is poorly understood in most dealerships. However, there is one area of core management that I felt was omitted, and that is cores that are processed through the area of warranty administration. As you know, the “shop” collectively is the single biggest customer of the parts department in most dealerships, and about a third of the shop work is vendor warranty related. Some of the cores related to warranty repairs are returned to the supplier and some remain in storage until the warranty claim is paid. It is critical that the parts department gets credit for those returned and that the “dirty cores” in storage get back to the parts department and are not thrown away. They also are part of the “dirty core” inventory. This process does vary by manufacturer and can become very complex and difficult to manage. Anyhow, I love your publication and I usually save articles like these as good reference pieces. I am retired now, but doing a little consulting from time to time. Your articles are excellent “checklists” for problem solving. Keep up the good work!
Don Keagle
successfuldealer.com
August 2010 | SUCCESSFUL DEALER | 35