Word on the Wire By Andy Latham andy@salvagewire.com

Five Habits of Good Auto Recyclers H

abits are regular actions that suc- cessful business people do to meas- ure their progress against targets and improvements in the business, or high- light issues early enough that remedial action can be taken. I have pinpointed some of the best habits that an auto recy- cler leader, manager, or owner can do. In some cases these come naturally, but occa- sionally there may have to be a disciplined approach taken to incorporate them.

1. Managing Stock Levels Managing stock levels can be the most

neglected or difficult to manage habit. In order to have the right type of stock, at the right volume, and re-invest in stock to drive more sales, managers and owners need to know what is selling, at what value, and how quickly it is moving so that they can purchase replacement stock at the right price to satisfy demand and keep their customers happy. Habit Tips: At least weekly, and in some cases daily, examine all sales and situations where a part request could not be met due to lack of stock. Evaluate cases where customers turned down the part even though it was available, and those unfor- tunate sales where the part was found to be damaged before delivery or on receipt by the customer. Look at trends for these parts over the previous weeks and months to see patterns. The data and information will drive purchase and pricing decisions for future stock procurement and also show where changes need to be made in dismantling, parts storage, packaging, and shipping practices.

2. Promoting Safety

The safety of staff and customers is crit- ical to the reputation of any business. Workplace accidents will occur, but it is the responsibility of senior mangers and owners to put the processes in place that minimizes risk sensibly, practically, and cost effectively.

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Habit Tips: Have robust processes in place. Conduct regular audits to show that processes are being followed cor- rectly. Reward good performance and use poor performance as teaching moments where improvements can be made. Enroll in ARA University to take advan- tage of the safety curriculum. Utilize ARA’s Safety Newsletter for subjects of team training. Emphasize the importance of sending out only the highest quality parts for public safety.

3. Mentoring Staff

Having motivated, professional, and sat- isfied staff results in quality work, satisfied customers, and repeat business. Investing in the staff is as important as re-investing in the stock because negative, untrained and de-motivated staff will not help a company to grow, develop, increase sales and make a bigger return.

Some of the most profitable businesses in the world have staff who go out of their way to give the best service possible to their customers, to give quality products, and get return business. Those satisfied customers will also tell their friends and colleagues who will then stop by to pur- chase parts for their own vehicles. Habit Tips: Hire smart at the start. Employing the right team is as important as treating them well. Give them public praise when they do the job right. Discuss privately mistakes and failure so they can understand what went wrong to make cer- tain the same mistake isn’t made again. Celebrate milestones and achievements.

4. Being Present in the Business At times, managers and owners get too

far removed from the day-to-day work in their business. It is good to get ground- ed occasionally. Being present helps ward off future problems, because they will be discovered rather than hidden. Habit Tips: Spend a day each month on the job, driving the truck, picking and

packaging parts, de-polluting and dis- mantling a vehicle, and so on. It fosters a real bond with your team, reminds you of how hard your team is working for your company (i.e.: see how good/difficult/ dirty/easy daily work-life in the business is, and can prompt ideas for improvements.

5. Networking with Others Since the demise of the physical auc-

tion, many auto recyclers will rarely ven- ture out of their office or yard. They have lost the regular opportunity to network with industry colleagues. One must now be more deliberate about networking. Habit Tips: Networking develops the individual and the business because they are challenged by the individuals and busi- nesses they network with. These opportu- nities could be within the industry, within a local business group, or a group of like- minded entrepreneurs. At least once a month, get out and meet with people that will help them to grow, develop, and be challenged.

How do you know if your “great” ideas are any good until you have tested them, or discussed them with a group of pro- fessionals you trust and respect? Some of my best ideas were refined to a higher level over a few cups of coffee. And, I have taken real satisfaction from helping oth- ers to refine and develop their own plans and ideas into business practices. I am sure that you will have your own habits to add to this list. The important part is to work at these habits to improve your business, your working life, the work- ing life of your employees and brings more customers to your company.

Andy Latham is Managing Director of Salvage Wire, a unique Auto Recycling consultancy with a focus on Safety, Ethics, and Profitability for all clients. With over 30 years of experience

in the automotive industry, Andy shares his knowledge, ex- perience, and wisdom garnered as an engineer, manager, and leader. For more details of Salvage Wire Training please contact Andy Latham on andy@salvagewire.com, or look at the website www.salvagewire.com