Farm Equipment — Dealer Parts Operations Survey – April 2017

1.Please indicate the primary equipment brand handled by your dealership:
2.What is the estimated split of your wholegoods sales dollars by customer type? (total must equal 100%; if “0” or NA please enter “0”)
3.What percentage of total employees at this location work in your parts department?
4.What is the estimated productivity of your Parts Department (annual $ parts sales per person, including Part Managers and Support people) over the last 3 years as a percentage?
5.On average, over the past 3 years, what percentage of your total dealership revenues came from the Sale of Parts?
6.On average, over the past 3 years, how did your Parts Sales Mix break down by customer type? (total must equal 100%; if “0” or NA please enter “0”)
7.Do you charge Internal Parts out at the same rate as Customer Parts? (Internal for setup & delivery, sales promotion or to complete a wholegoods sale)
8.What is the gross margin on Parts from Full or Shortline OEMs (including discounts)?
9.What is the difference in gross margin for Parts Over the Counter vs. Parts Sold on Repair Orders through the Shop?
10.What number of Inventory Turns are you achieving in your Parts Dept.?
11.Has this improved from 3 years ago?
12.Do you have a stated target for number of Parts turns you’re aiming for? If yes, what is it?
13.What is your Customer Fill Rate Over the Counter (based on number of part numbers requested, what % of time does the customer leave with all parts requested)?
14.What is your Absorption Rate from Parts Sales (Percent that Parts Gross Margin covers all Dealership Expenses)?
15.Does your dealership track Lost Parts Sales to update demand history?
16.What percentage of your annual parts sales come from the following sources? (must equal 100%; if “0” or NA please enter “0”)
17.Have your sources for Repair/Service parts changed significantly in the past 3 years?
18.If yes, what is the primary reason you changed your parts supplier? (Please rank in order of importance: 1 = most important; 2 = important; 3 = not important; please rank all that apply)
1
2
3
Price
Availability
Quality
Timeliness of shipments
Ease of ordering
Discount/incentive programs
Other (please specify)
19.Have you changed your strategies for Parts Inventory in the past 3 years?
20.If your dealership has multiple stores, have you consolidated service parts inventory into one location vs. stocking at multiple locations?
21.Have you implemented different service parts inventory strategies for tractor parts vs. harvesting parts vs. tillage/planting parts?
22.Are the OEMs able to supply service parts to your dealership in the timeframes and quantities required?
23.Does your dealership participate in programs where service parts orders placed with the OEM are shipped directly to the dealership from the manufacturer of the parts (Direct Ship)?
24.If yes, would you like to see more or less of these type of programs?
25.What do you see as the advantage/disadvantage of these programs?
26.Do you use these programs to hedge having to hold inventory? (please explain)
27.Are your customers moving away from OEM service parts and choosing aftermarket options?
28.Are you losing customers to online options for service parts (primarily aftermarket)?
29.What is your biggest challenge regarding service parts in this down market? (please explain)
30.What changes has the dealership made in the last 3 years that significantly improved overall operations (efficiency, productivity, etc.) of the Parts Dept.? (please explain)
31.What changes has the dealership made in the last 3 years that significantly improved the sales and profitability of the Parts Dept.? (please explain)
32.What changes is the dealership planning in the next 18 months to improve overall efficiency and/or increase sales and profitability of the Parts Dept.? (please explain)
33.Dave, if you use my comments, please keep they anonymous.
34.Do you want a copy of the report?