Dennis McGinn,FOUNDER AND CEO OF RAPID RECON; [email protected]; http://rapidrecon.com/
March 2018 - AutoSuccess magazine -
Here’s a question often asked when dealership group managers gather, which unfortunately typically goes unanswered: “How many of you know your average days in recon?”
The question goes unanswered because almost anyone not using a reconditioning workflow tool is managing recon by “guesstimate.” The average days in recon (ADR) measurement is every bit as much a key performance indicator of your productivity, efficiency and profitability as are sales volume, days’ supply and contracts in transit.
From my research, dealers practicing rapid reconditioning note:
• “Inventory management tools aren’t as helpful as they can be if cars are hung up in the recon process,” said Rod Rowley, senior vice president for the Larry H. Miller Group of Companies. “These tools are more effective if you also have efficient reconditioning pushing inventory into these systems faster.”
• “We pay particular attention to days’ supply of our inventory, and practice a velocity-based model, a time- and age-sensitive inventory method,” said Ted Chapman, CEO of the Chapman Automotive Group. “If I can reduce inventory aging as a result of a more focused and coordinated reconditioning process, I’m buying time. As a group that once took an average 11 days to get vehicles from acquisition to the sales line, cutting that time in half gives us another week of action with that asset.” Click to read entire article
March 2018 - AutoSuccess magazine -
Here’s a question often asked when dealership group managers gather, which unfortunately typically goes unanswered: “How many of you know your average days in recon?”
The question goes unanswered because almost anyone not using a reconditioning workflow tool is managing recon by “guesstimate.” The average days in recon (ADR) measurement is every bit as much a key performance indicator of your productivity, efficiency and profitability as are sales volume, days’ supply and contracts in transit.
From my research, dealers practicing rapid reconditioning note:
• “Inventory management tools aren’t as helpful as they can be if cars are hung up in the recon process,” said Rod Rowley, senior vice president for the Larry H. Miller Group of Companies. “These tools are more effective if you also have efficient reconditioning pushing inventory into these systems faster.”
• “We pay particular attention to days’ supply of our inventory, and practice a velocity-based model, a time- and age-sensitive inventory method,” said Ted Chapman, CEO of the Chapman Automotive Group. “If I can reduce inventory aging as a result of a more focused and coordinated reconditioning process, I’m buying time. As a group that once took an average 11 days to get vehicles from acquisition to the sales line, cutting that time in half gives us another week of action with that asset.” Click to read entire article
