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Cuts in spending?
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<blockquote data-quote="Pip" data-source="post: 207176" data-attributes="member: 6039"><p>I can only speak for our automotive department in my center, and another center I talk to the guys a lot far as automotive goes. Probably since Jan. or Feb. There has been a big push to cut inventory on parts we can stock. </p><p> </p><p>We used to stock a lot of the extra things that might not get used regularly but are parts that will put a Car on red-tag. Our inventory has been cut by approximately $35,000. Meaning we have sent back $35,000 worth of parts we would normally keep in stock. Our inventory now is running around $24,000 at any given time. This translates into package cars red-tagged longer waiting on parts to be replaced.</p><p> </p><p>We haven't been given any criteria on what gets fix or what doesn't. No sign of cutting corners. If we need parts to fix something that we don't have, we just order them and wait for them to come in.</p><p> </p><p>Now the reason that was explained to me about the reduction of inventory is this:Having a more efficient running shop, cost wise. Having a lot of money tied up in inventory alone adds up, that UPS could be investing. Here is a hypothetical using our inventory costs alone of $24,000(this number could be higher or lower on average) X 1250 centers(think this is close to how many centers nation wide) = $30,000,000 in inventory at any given time. I will tell you that in my center alone, our average used parts costs for a month is close to $45,000. This number has many variables, engine replacement, tranny replacement, ect.</p><p> </p><p>Far as truck washing in my center, I haven't seen any reduction, Our package cars still get washed regularly several times a week.</p><p> </p><p>Right now with volume being down, Corp, is watching the numbers closely to get more bang for the buck. In all honesty I think it is just good business to watch your bottom line. Any successful business has to watch the bottom line whether it be UPS or the mom and pop store down the road. I might not agree with all the cost cutting in my department, but I have to follow the guidelines set for us and make the best of it.</p></blockquote><p></p>
[QUOTE="Pip, post: 207176, member: 6039"] I can only speak for our automotive department in my center, and another center I talk to the guys a lot far as automotive goes. Probably since Jan. or Feb. There has been a big push to cut inventory on parts we can stock. We used to stock a lot of the extra things that might not get used regularly but are parts that will put a Car on red-tag. Our inventory has been cut by approximately $35,000. Meaning we have sent back $35,000 worth of parts we would normally keep in stock. Our inventory now is running around $24,000 at any given time. This translates into package cars red-tagged longer waiting on parts to be replaced. We haven't been given any criteria on what gets fix or what doesn't. No sign of cutting corners. If we need parts to fix something that we don't have, we just order them and wait for them to come in. Now the reason that was explained to me about the reduction of inventory is this:Having a more efficient running shop, cost wise. Having a lot of money tied up in inventory alone adds up, that UPS could be investing. Here is a hypothetical using our inventory costs alone of $24,000(this number could be higher or lower on average) X 1250 centers(think this is close to how many centers nation wide) = $30,000,000 in inventory at any given time. I will tell you that in my center alone, our average used parts costs for a month is close to $45,000. This number has many variables, engine replacement, tranny replacement, ect. Far as truck washing in my center, I haven't seen any reduction, Our package cars still get washed regularly several times a week. Right now with volume being down, Corp, is watching the numbers closely to get more bang for the buck. In all honesty I think it is just good business to watch your bottom line. Any successful business has to watch the bottom line whether it be UPS or the mom and pop store down the road. I might not agree with all the cost cutting in my department, but I have to follow the guidelines set for us and make the best of it. [/QUOTE]
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