Dealership Newsmaker Q&A: Larry Williams

Jan. 1, 2020
Larry Williams is a former parts manager, trainer, consultant and author with more than 30 years experience working with dealership fixed operations departments. He is based in San Diego, Calif.
Larry Williams is a former parts manager, trainer, consultant and author with more than 30 years experience working with dealership fixed operations departments. He is based in San Diego, Calif.

What is the most significant challenge facing fixed-operations departments right now?

Changing their attitude. For over three years the automotive market has been in a decline. That's three years of lower car sales, fewer repairs and less maintenance. That time is now at an end. Car sales are up, and soon repairs will follow. The problem is attitude. No more negativity! This is easy to say but much harder to do. Leaders must show by example that they are sure of their future, and invest now in boosting department morale. It doesn't need to be big and splashy; just smile every day and maybe get a new coffee pot. When the boss has a good attitude, the employees and then the customers will follow.

What are some key steps parts managers should take to ensure that physical inventory, accounting and computer inventories stay in synch?

A complete physical inventory must be taken every year. The result of this is the foundation for everything else. The next most important detail is the monthly parts manager report. It must be shared with the accounting department. Normal sales and receipts are automatically shared between parts and accounting, but nothing else. Parts must give accounting of all dollar values regarding adjustments, losses and price changes. Without these details, there will always be a difference. Of course, every employee must be made aware of the importance of correcting any inventory errors found and reporting all these immediately to the parts manager for correction.

How has dealership consolidation impacted parts and service departments at the remaining dealerships?

Increased pressure on managers and a higher investment on the part of the dealer principle. Every manufacturer has his or her own unique product. Parts managers have to cope with different ordering procedures, obsolescence policies, pricing, stocking, inventories and physical storage. Service managers must deal with tools, warranty procedures and qualified technicians. The dealership must purchase different inventories, tools and even display areas. The biggest problem is training. Extra personnel must be hired just to allow for all the time lost on extra training with multiple lines. Managers especially need help with their daily routine if they are expected to keep abreast of the constant changes with multiple products. 

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Can you name one or two opportunities for business improvement that you think many parts managers may be missing out on, either because they are unaware of them, or they don’t have time to implement them?

Every business can be improved. The problem is recognizing an opportunity when it arrives. All of us are creatures of habit, and once we find a routine, we seldom change unless forced. Those who want to improve, however, will make time for change. They will find time to step back and look at their operation with "new eyes." They will interview their customers for ideas about their departments. Every suggestion and complaint is an opportunity to improve your service.

Larry Williams is a former parts manager, trainer, consultant and author with more than 30 years experience working with dealership fixed operations departments. He is based in San Diego, Calif.

What is the most significant challenge facing fixed-operations departments right now?

Changing their attitude. For over three years the automotive market has been in a decline. That's three years of lower car sales, fewer repairs and less maintenance. That time is now at an end. Car sales are up, and soon repairs will follow. The problem is attitude. No more negativity! This is easy to say but much harder to do. Leaders must show by example that they are sure of their future, and invest now in boosting department morale. It doesn't need to be big and splashy; just smile every day and maybe get a new coffee pot. When the boss has a good attitude, the employees and then the customers will follow.

What are some key steps parts managers should take to ensure that physical inventory, accounting and computer inventories stay in synch?

A complete physical inventory must be taken every year. The result of this is the foundation for everything else. The next most important detail is the monthly parts manager report. It must be shared with the accounting department. Normal sales and receipts are automatically shared between parts and accounting, but nothing else. Parts must give accounting of all dollar values regarding adjustments, losses and price changes. Without these details, there will always be a difference. Of course, every employee must be made aware of the importance of correcting any inventory errors found and reporting all these immediately to the parts manager for correction.

How has dealership consolidation impacted parts and service departments at the remaining dealerships?

Increased pressure on managers and a higher investment on the part of the dealer principle. Every manufacturer has his or her own unique product. Parts managers have to cope with different ordering procedures, obsolescence policies, pricing, stocking, inventories and physical storage. Service managers must deal with tools, warranty procedures and qualified technicians. The dealership must purchase different inventories, tools and even display areas. The biggest problem is training. Extra personnel must be hired just to allow for all the time lost on extra training with multiple lines. Managers especially need help with their daily routine if they are expected to keep abreast of the constant changes with multiple products. 

PAGE 2 

Can you name one or two opportunities for business improvement that you think many parts managers may be missing out on, either because they are unaware of them, or they don’t have time to implement them?

Every business can be improved. The problem is recognizing an opportunity when it arrives. All of us are creatures of habit, and once we find a routine, we seldom change unless forced. Those who want to improve, however, will make time for change. They will find time to step back and look at their operation with "new eyes." They will interview their customers for ideas about their departments. Every suggestion and complaint is an opportunity to improve your service.

About the Author

Brian Albright

Brian Albright is a freelance journalist based in Columbus, Ohio, who has been writing about manufacturing, technology and automotive issues since 1997. As an editor with Frontline Solutions magazine, he covered the supply chain automation industry for nearly eight years, and he has been a regular contributor to both Automotive Body Repair News and Aftermarket Business World.

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