Why Use a Third-Party for Parts Inventory Counts?

When it comes to automotive parts inventories, accuracy and efficiency are critical. Dealerships face the constant challenge of maintaining precise stock levels while ensuring that their financial records match the physical inventory. One of the decisions dealerships must make is whether to perform inventory counts internally or hire a third-party service.

While internal counts can be cost-effective, third-party inventory counts offer a range of advantages that can significantly improve accuracy, save time, and streamline operations. Let’s take a closer look at why using a third-party inventory service like PartsCount can be a smart move for your dealership.

1. Objectivity and Accuracy

Internal Counts: When your team handles the inventory count, there’s always the potential for human error or unconscious bias. Whether it’s a lack of attention to detail, misunderstandings of the process, or even internal pressures to meet sales or financial goals, mistakes can happen. These errors can lead to discrepancies between physical inventory and financial records, which may take days or weeks to identify and resolve.

Third-Party Counts: A third-party inventory service brings an objective, fresh set of eyes to the process. Experienced professionals are less likely to overlook discrepancies or fall victim to biases that could skew results. The result is more accurate counts, and ultimately, more reliable financial records. Third-party services ensure that your inventory records are precise from day one.

2. Time Efficiency

Internal Counts: Conducting inventory counts internally takes significant time and resources. Your staff may need to dedicate entire days (or even weeks) to physically counting parts, entering data, and cross-referencing records. This process can be disruptive to daily operations and leave your team with less time to focus on core tasks, like serving customers and driving sales.

Third-Party Counts: A third-party provider can complete the same count in a fraction of the time. Using streamlined processes, third-party services minimize the amount of time your team spends on counting and paperwork. This allows you to get back to running your dealership without disrupting productivity, while still ensuring that your inventory is accurate.

3. Specialized Expertise

Internal Counts: While your team is undoubtedly skilled at managing the day-to-day operations of the dealership, inventory counting requires specialized knowledge and attention to detail. Your employees may not be trained in the most effective inventory counting techniques, or in using the latest tools for accuracy and efficiency.

Third-Party Counts: Third-party providers specialize in inventory counting and bring a wealth of expertise to the table. They’re well-versed in best practices and can help streamline the process to ensure fast, accurate counts. Additionally, third-party services often have more experience handling complex or large inventories, which can be especially helpful for dealerships with a wide range of parts.

4. Reduced Risk of Internal Fraud or Errors

Internal Counts: In any business, there’s always the potential for internal fraud, whether intentional or unintentional. Employees may make errors when handling inventory or may fail to report discrepancies in order to meet sales goals or avoid scrutiny. Even well-meaning employees can make mistakes when the stakes are high.

Third-Party Counts: Third-party services add a layer of accountability that internal teams might lack. They operate independently of your dealership’s daily operations, providing an impartial and unbiased perspective on your inventory. This reduces the risk of fraud, theft, or internal errors that could go unnoticed in an internal count.

5. Scalability and Flexibility

Internal Counts: Internal counts often require significant resources, including staff, equipment, and time. As your dealership grows, the complexity of counting parts can increase, making it more difficult to keep up with inventory demands. Internal teams may struggle to scale their efforts efficiently to handle larger inventories or additional locations.

Third-Party Counts: A third-party provider can scale their services to match the growth of your dealership. Whether you’re adding new locations, expanding your inventory, or introducing new product lines, third-party services can adapt to your changing needs. Their expertise and resources allow them to manage larger and more complex counts without the need for you to invest in additional internal resources.

6. Better Use of Technology

Internal Counts: Many dealerships rely on basic tools or manual processes to track and count inventory. This can lead to mistakes, inefficiencies, and difficulties when reconciling physical inventory with financial records.

Third-Party Counts: PartsCount by Total Dealer Solutions uses the latest technology to streamline the counting and reconciliation process. Our web platform facilitates seamless submission of reconciling items, generates detailed reports with full accounting reconciliation, and provides invaluable inventory health analysis and recommendations. 

7. Cost-Effectiveness in the Long Run

Internal Counts: While handling inventory counts internally may seem like a cost-saving option at first, it can become more expensive over time. The costs of labor, training, and equipment can add up, especially if you need to conduct multiple counts per year. Additionally, errors or discrepancies may lead to costly financial corrections or operational disruptions.

Third-Party Counts: Outsourcing inventory counts can save money in the long run by reducing labor costs, preventing costly errors, and improving operational efficiency. By relying on experts who can complete the task quickly and accurately, you can avoid the hidden costs associated with internal counts and focus on growing your business.

Conclusion: Choosing the Best Option for Your Dealership

While internal inventory counts can be tempting due to the perceived cost savings, third-party services offer clear advantages in terms of accuracy, time efficiency, specialized expertise, and scalability. By outsourcing your inventory counts, you can ensure that your dealership’s parts inventory is always accurate, minimize risks, and improve your overall financial health.

If you want to improve the efficiency and accuracy of your inventory management, it may be time to consider a third-party solution. With the right partner, you’ll be able to focus on what matters most—serving your customers and driving sales—while leaving the complexities of inventory counts to the experts.