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Is it time for the Heimlich Maneuver ... on your Inventory?


D


o What? So you’re in a restaurant and the guy at the next table starts choking. What will you do? Hopeful-


ly, something. Hopefully, that something is the Heimlich Maneuver. Hopefully, that guy at the next table gets to fi nish his din- ner because of your quick action. And what does this have to do with our inventory? I think we are much more effi cient at selecting parts to be dismantled and stored in our buildings today versus 10-15 years ago. Would you agree? However, that doesn’t mean that we have developed a system for consistent verifi cation and purging of old stock. Hence the choking analogy. Many of our warehous- es are chock full of aged parts that do not stand a good chance of selling, preventing us from bringing in fresh inventory which will sell. Quite frankly, we are choking. And it is costing us millions of dollars! Think quick? 1. Do you know how full your warehouse is by per- cent?


2. Do you have an inventory of your rack posi- tions?


3. Do you know how much of your warehoused inventory is 30-60 days old, 61-90, 91-120, 121- 180, 181+?


You may have to drill down with your YMS to fi g- ure these numbers out but it would be well worth the time. Do you think Amazon knows? Large com- panies spend millions of dollars on logistics and sup- ply chain management systems to ensure that their customers receive the correct product at the right time and place. I believe this is the Auto Recycling Industry’s Heimlich moment. We must learn to run our operations as lean and effi ciently as possible. Putting up another building to warehouse in-


ventory is not a bad idea, just don’t put up the new building until you have done the Heimlich on your current facility. Also, keep in mind that only you can determine what is old and what should be discard- ed. Late model yards will have a very different pro- fi le than a mechanical yard in terms of inventory. It is critical to evaluate which parts will be ware- housed versus stored in the vehicle. Part value, turn,


Industry consultant Paul D’Adamo is now the “Recall Guy,” representing the RAS Recall Team. Their mission is to rid the planet of defective airbags.


AUTOMOTIVE RECYCLING • March-April 2018


and space requirements are several cri- teria that you should base your decision on.


By Paul Adamo


Quick Facts about Inventory: • Negatives:


> Lost or missing parts cost you money in lost time and resources. We all know the frustra- tion in tracking down a “missing” part.


> Lost or missing parts cost you customers due to high levels of stress.


> Lost or missing parts steals motivation from your sales people.


> Overstocked shelves reduce your ability to ver- ify inventory.


> Overstocked warehouses limit your ability to have “Fresh” stock cycling through.


• Positives > The higher the fi ll rate, the more confi dence your sales people will have to sell your invento- ry which means more money in their pocket, as well as yours.


> Your customers will consider you a “preferred vendor” because of your reliability.


> Managers spend more time managing versus searching for lost sheep.


What’s Your Plan?


• Make Data Integrity and Inventory Control a Core Mission for your company which means that you need to step up and make it a priority. • Use any available tool from your Yard Manage- ment System Company, i.e. Bar Code System to be part of the plan.


• Create a schedule for inventory audits and make it an ongoing process. It is easier to manage a project like this in smaller bites versus an annual event which never gets completed.


• Identify the proper team members who are focused, detail oriented and are consistent in com- pleting projects.


It truly adds up to planning, procedures and allo- cation of resources to get the job done. Getting back to our story, choking is a real dan-


ger. Take the time to familiarize yourself with the fairly simple but effective Heimlich Maneuver in the event someone ever needs your assistance. And let’s hope that with good planning, procedures and adequate resources you never have to use it on your inventory. 


Editor’s Note: Maximizing Profi ts is a series to help auto recyclers main- tain their bottom line. Industry experts are invit- ed to share ideas and strategies to fi ne-tuning an automotive reycling business. If you have an idea for an article, email ARAEditor@ comcast.net with your topic.


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