February '19

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rv-pro.com February 2019 • RV PRO • 49 fathers, Benjamin Franklin, is attributed with the quote: "A place for everything, and everything in its place." And bin locations don't only have to be for items that you stock. I suggest that you assign a bin location to each item in your P&A inventory. This includes items for which you are tracking demand, such as lost sales ("LS" is my suggested bin location) and special orders ("SO" is my suggested bin location). If an item for which you are currently tracking demand should achieve sufficient demand to justify placing it in your inventory, then you change the informational bin location to a stock location. By assigning these informational bin locations to non-stock items, you provide your parts associates with information that could enhance their efficiency when transacting business with your customers. For instance, a customer requests an item. Your parts associate researches the part number, enters it to the DMS, and notes the bin location as LS and the quantity as "0". With this information, your parts associate advises the customer that the item is not currently in stock and that she could process a special order for the customer. Had your parts associate not had the LS bin location, she might have searched for the item because the accuracy of the inventory database might be in question. This scenario indicates another essential inventory manage- ment process that you should consider implementing in your RV business. This essential process is a perpetual inventory sometimes referred to as cycle counting. Why a Perpetual Inventory? "To err is human …" is part of a phrase attributed to Pope Alexander. This phrase is the basis for my suggestion to implement a perpetual inventory process in your RV business. Because humans are involved in transacting the receipt of, the placement of, and the selling of your P&A inventory, most likely errors will occur. These errors can occur randomly throughout the year, so scheduling a physical counting of your P&A inventory only once per year might only correct these errors at that time. However, by implementing a perpetual inventory process, the opportunity to catch errors and correct them can occur as frequently as each day. If these errors are identified and corrected, then the accuracy of your P&A inventory can be enhanced, which could offer benefits, such as: • Improved stock replenishment orders • Enhanced customer service • Increased parts associate efficiency • More accurate reporting of your P&A inventory value for tax and insurance purposes As part of your perpetual inventory process, I suggest that you include a monthly reconciliation of the inventory values reported by the accounting and inventory departments. This perpetual inventory process was so important to me during my career as a parts manager/ director that I developed a concept 2019 Media Plan Consultants EMAIL ADVERTISING INQUIRIES TO: ryan@nbm.com (800) 669-0424 X 216 www.rv-pro.com Eastern U.S. Ryan Moorhead EMAIL ADVERTISING INQUIRIES TO: jfoos@nbm.com (800) 669-0424 X 212 Western U.S. Jordyn Foos PRINT/DIGITAL RETURN OPPORTUNITY

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