April '20

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28 • RV PRO • April 2020 rv-pro.com for this column is to re-visit the concept of bin locations in con- junction with spring cleaning for your parts operations. You might be thinking: Why is Mel bragging about being able to quickly locate a 15-year-old column? Especially given that he suggests that we don't include aged and slow-moving inventory (SMI) in our parts inventory. My point is that I have a protocol for storing my documents, which is a version of a bin location system. If you have a system for efficiently locating the goods in your dealership, then the opportunity for quickly serving your customers is enhanced. However, if your parts Assoc.iates have difficulty locating goods that your customers request, then the number of sales opportu- nities per period of time decreases, which in turn decreases your opportunities for profit. Spring Cleaning March 21 is traditionally observed as the first day of Spring. One of the traditions related to spring is that of a cleaning and purging of a household or business. Assuming you might be interested in some spring cleaning of your RV business, let's look at a few aspects of cleaning and organizing that you could implement. Cleaning & Organizing Options How many items in your parts and accessory inventories have not experienced a transaction of any kind in more than 12 months? What factors other than transaction date could assist you in identifying those items and in determining optimal methods of elimination? Some of these other factors could include: • Unit cost: Items with a unit cost of less than $1 might best be eliminated by writing them out of your inventory. • Date last received: Items that have been recently transacted yet have a date last received of more than one year previous might be considered for elimination through return to supplier. • Similar use: If your DMS offers a function to identify items having similar uses, then perhaps mixing the old item with one having similar function or characteristics could enable a sale. When did your parts Assoc.iates most recently change the merchandising of the display goods in the parts and accessory showroom? Some options to consider when re-merchandising your display goods could include: • Supplier point-of-purchase displays: These might have been provided with the purchase of a specific volume of goods: Where should each be placed to encourage customer awareness and possibly interaction? What related goods could be placed proximate to these POP displays? • Selling hot spots: Where are these places in your retail showroom? Your DMS might offer a function that enables you to determine the bin locations in your showroom that contain items having the largest volume of units sold. Perhaps placing some of the slower-moving items in these hot spots could increase their sales levels. • Recommended shopping lists: Spring also might be the time when some of your customers begin prepping their RV for travel. What shopping lists have your parts Assoc.iates developed that could assist your customers in purchasing the items required to outfit their RV for travel? Where could these shopping lists be placed so that your customers are aware of them? • Shopping baskets or carts: If you have provided shopping lists for your customers, would it be helpful if they have some method of carrying these goods that might encourage them to purchase more of each item and/or more items? • Bin locations, displays and storage: For some tips as to how bin location protocols could enhance your customer service efforts and your profitability continue reading. Bin Location Protocols There are two basic areas for placement of parts and accessories in your RV business and these are the showroom (display) and the storage room(s). Each might require a different bin location protocol. However, for each of these two types of areas/rooms there should always be a floorplan of the fixtures (display or storage), where they are physically situated, and indicating the bin location of each fixture. For the storage areas/rooms, I suggest using the FABS (floor- aisle-bin-shelf) format for developing your bin locations; and, applying the size-quantity and skipped letter/number concepts for placing goods in the storage fixtures. Refer to Figure 1 (see page 26) that shows an example of the FABS format and of the size-quantity and skipped letter/number concepts. Using the item indicated by the black arrow as an example, the bin location A03M3C locates the item as being in: Aisle "A", Storage Bin "03", Shelf "M", Bin Box "3", Divider "C". Note also the "skipped letters" assigned to the shelves, which allows other shelves to be placed between shelves "M" and "P" without changing the bin locations for items on the lower shelves. This "skipped letter" concept also is applied to the divider spaces so that smaller items could be placed in slots "B", "D" and "F" without changing the bin locations in slots "C", E", "G", "H", "I", and "J". Bin "03"has a place-holding "0" assigned because of the sequencing protocol of the DMS. Given that there are 12 storage bins in Aisle "A", it is necessary to use place-holding zeroes for units 01 thru 09. If these place-holding zeroes are not included in the bin location, when the DMS prints the bin locations for count sheets or for reports, the bins will appear as: 1 10 11 12 2 3 4 5 6 7 8 9 For more information on this place-holding zeroes concept, please email your questions to me. Application of the size-quantity concept allows for placement of new goods according to the size of the item or the quantity of

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