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BEI Services Announces REACH Leadership Development Academy Schedule

Tuesday, September 6, 2016  
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BEI Services has announced that its REACH Level One – "Managing Mobile Employees" course will be held Oct. 19-20 in Oklahoma City, Oklahoma, and its Inventory & Logistics Course will be held Oct. 12-13, also in Oklahoma City.

REACH Level One is specifically designed for those who manage service technicians in the field. This is not another endeavor in benchmarking but, instead, a "how to manage and motivate technicians to get results that ultimately will impact customer satisfaction and profits" beginning with the principals of REACH. REACH is an acronym standing for respect, expectation, accountability, coaching and humility. Topics included are: reports and information necessary to properly assess a technician's strengths, areas of opportunity and productivity; the coaching process; service territory optimization and car stocks.

The true job of these individuals is to develop their teams of technicians using the skills that made them successful, not just shuffling calls and fixing the machines that no one else seems to be able to.

A recent case study of a dealership that implemented BEI's Tech Assessment Program just prior to 2016 showed significant improvement when comparing Q1 2016 with Q2. First-call effectiveness improved by 7 percent while callbacks were down by 5 percent and hold for parts down by 2 percent. More than 450 fewer serial numbers were serviced and parts cost of goods were down by more than $100,000 for the second quarter. Possibly the most noteworthy of all was the fact that in Q1 there were 30 technicians, while in Q2 there were 26.

This program translates directly to increased profits and is part of the foundation for this course.

BEI's Inventory & Logistics Course begins with the basics of inventory and purchasing — what are inventory turns; what should they be; how often you should restock and reorder from your vendors; defining accurate car stocks; prevention of obsolescence; how to reserve for it; and how to take a physical inventory. It includes things that should be monitored on a regular basis such as a comparison between parts purchased versus parts cost of goods sold.

"While we never expect, nor can we afford to have hold for parts percentages below our goal of 10 to 12 percent — as the percentages climb beyond those rates we are quite literally throwing labor at a parts problem — consider the fact that the most expensive component in our service department is labor," said Jack Duncan, director,
REACH Leadership Development Academy. "Can we afford not to solve this problem? Recent studies have shown as many as two or more technicians in some dealerships whose time is fully consumed by installing parts that should have been in car stocks on the first visit.

"The other side of this coin is inventory obsolescence," Duncan continued. "If we are not monitoring our usage trends and watching for parts with descending usage (for example, when a model gets older and begins to be replaced), we will have inventory that we have paid thousands of dollars for that now must be written off or sold at a loss."

BEI Services performed a study consisting of 209 dealerships. By analyzing the age of each dealer's unused parts inventory, BEI uncovered that there is a true epidemic of aged and obsolete inventory in the dealer channel. To accomplish this study, BEI segregated aged inventory into three categories. Inventory that had not had any usage at the dealership for six to 12 months was in the first, no usage in 12 to 18 months in the second, and no usage in more than 18 months in the last. The final tally for all dealerships showed $32,900,664.19 in the last bucket — no usage in more than 18 months. Averaged across all 209 dealerships, each would have $157,419.45 invested in obsolete inventory. Totals for the first two categories are equally concerning.

In summary, inventory is a balancing act — if you do not have the right inventory in the right place at the right time, we throw labor at a parts problem. If you have too much inventory, you risk obsolescence and throwing profits away needlessly.

Currently these courses are for BEI customers only. Please contact BEI to confirm dates for non-BEI customers. Courses are offered with special pricing at $1,495 per attendee with a $100 discount for those registering prior to Sept. 20.

If you have questions regarding these courses, email reach@beiservices.com.

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