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Farm Equipment — Dealer Parts Operations Survey – April 2017
1.
Please indicate the primary equipment brand handled by your dealership:
AGCO
Case IH
John Deere
Kubota
New Holland
None of these/shortlines only
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”)
Cash Crop buying big equipment
Mixed and Livestock farms buying Hay & Forage and/or medium equipment
Rural Lifestylers or Consumers buying compact or lawn & garden equipment
3.
What percentage of total employees at this location work in your parts department?
Less than 5%
6-10%
11-15%
16-20%
20% or more
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?
Less than 10%
0-15%
16-20%
21-25%
26-30%
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”)
Customer – Over the Counter
Customer – Over the Counter
Customer – Internal
Warranty
Other
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)
Yes
No
8.
What is the gross margin on Parts from Full or Shortline OEMs (including discounts)?
Full-line OEM Parts
Shortline Parts
9.
What is the difference in gross margin for Parts Over the Counter vs. Parts Sold on Repair Orders through the Shop?
No difference
Counter Parts Less then 1 Point less
Counter Parts 1 to 2 Points less
Counter Parts Over 3 Points less
10.
What number of Inventory Turns are you achieving in your Parts Dept.?
11.
Has this improved from 3 years ago?
Yes, they’ve improved from _________ turns 3 years ago
No, they’re down from ____________ turns 3 years ago
They’re about the same as 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?
Yes
Mostly Yes
Rarely
No
16.
What percentage of your annual parts sales come from the following sources? (must equal 100%; if “0” or NA please enter “0”)
New OEM sourced Parts
Non-OEM sourced Aftermarket Parts
Rebuilt/Salvaged Parts
Other (please specify)
17.
Have your sources for Repair/Service parts changed significantly in the past 3 years?
Yes
No
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
1
2
3
Availability
1
2
3
Quality
1
2
3
Timeliness of shipments
1
2
3
Ease of ordering
1
2
3
Discount/incentive programs
1
2
3
Other (please specify)
1
2
3
19.
Have you changed your strategies for Parts Inventory in the past 3 years?
No
Yes (Please explain)
20.
If your dealership has multiple stores, have you consolidated service parts inventory into one location vs. stocking at multiple locations?
Yes
No
If yes, please explain how your system operates (delivery to other locations, etc.):
21.
Have you implemented different service parts inventory strategies for tractor parts vs. harvesting parts vs. tillage/planting parts?
Yes
No
If yes, please explain why and how this strategy works:
22.
Are the OEMs able to supply service parts to your dealership in the timeframes and quantities required?
Yes
No
If no, please explain why and how they’ve fallen short of your expectations/needs:
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)?
Yes
No
24.
If yes, would you like to see more or less of these type of programs?
More
Less
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?
Yes
No
28.
Are you losing customers to online options for service parts (primarily aftermarket)?
Yes
No
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.
Yes
No, feel free to use them with attribution to me
34.
Do you want a copy of the report?
No
Yes (Please provide your email for a copy)