2 Webinar Series Key Performance Indicators (KPI) for Parts Managers De‐Mystifying the Financial Statement! Thursday, November 14th, 2013 Presented by Sebastiano Banchitta, CPA and Rob Campbell, Analyst The Mironov Group, LLC CPAs and Automotive Consultants
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Key Performance Indicators (KPI) for Parts · PDF file2 Webinar Series Key Performance Indicators (KPI) for Parts Managers De‐Mystifying the Financial Statement! Thursday, November
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Piece movement ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________
Inventory measurements Gross Turn – Ratio of sales to inventory
Sales (at cost) for 12 months ÷ Inventory … Or days supply 365 (days) ÷ Turns True Turn – Ratio of purchases to inventory (“stocked inventory turns”)
Stock Order Purchases (at cost) for 12 months ÷ Inventory ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________
NS parts and their impact NS Inventory $ ÷ Total Inventory $ NS Parts Sales Efficiency (Month’s NS Sales ÷ Month’s NS Receipts) x 100 ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________
Inventory Age Current _______ Technically Obsolete _______ Obsolete _______ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________
YTD Total Sales (at Cost) + YTD Lost Sales The ADP definition (Sales Closing Ratio)
Sales Closing Ratio = (Net Sales ÷ Total Demand) x 100 Total Demand = Net Sales + Lost Sales
______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ THANKS FOR LISTENING!! You can reach me at anytime [email protected]
15OCT2013 10:34:13 CAMPBELL CADILLAS OF NEW JERSEY CCN-I302SEP013 Month End SEP 2013 MONTHLY SUMMARY REPORT Page 1
Grand Total
NBR OF PARTS PERCENT PARTS PIECES PERCENT PARTS COST PERCENT ------------ ------- ------------ ------- -------------- -------Inventory Balance 21,275 13,044 255,764.88 Active Parts 1,604 7.53 7,188 55.10 124,121.31 48.52 NS Parts 17,337 81.49 1,913 14.66 43,440.79 16.98 MO Parts 1 0.00 15 0.11 AP Parts 1,938 9.10 3,541 27.14 78,752.96 30.79 DP Parts 167 0.78 387 2.96 9,449.82 3.69 SP Parts DEL Parts 228 1.07
Parts With No Cost 72 0.33 25 0.19
Parts With Negative On-Hand 19 0.08 145 -1,330.14
Core/Exchange 82 0.38 120 0.91 10,952.00
Memos On File 2,045
Parts Added 657 3.08 95 0.72 3,174.59 1.24 Active Parts 8 1.21 13 13.68 828.08 26.08 NS Parts 649 98.78 82 86.31 2,346.51 73.91 MO Parts AP Parts DP Parts SP Parts
Parts & Memos Deleted 149
Inventory Movement - Sales 0 to 3 Months 4,667 21.93 7,661 58.73 120,492.68 47.11 4 to 6 Months 2,143 10.07 1,046 8.01 24,952.60 9.75 7 to 12 Months 3,442 16.17 1,342 10.28 34,235.74 13.38 Over 12 Months 8,543 40.15 2,502 19.18 63,839.75 24.96 New Parts No Sales 2,480 11.65 493 3.77 12,244.11 4.78
Inventory Movement - Receipts 0 to 3 Months 4,649 21.85 6,879 52.73 122,957.64 48.07 4 to 6 Months 2,226 10.46 1,274 9.76 34,257.98 13.39 7 to 12 Months 3,560 16.73 1,948 14.93 35,970.49 14.06 Over 12 Months 8,478 39.84 2,868 21.98 62,025.59 24.25 New Parts No Receipts 2,362 11.10 75 0.57 553.18 0.21
15OCT2013 10:34:13 CAMPBELL CADILLACS OF NEW JERSEY CCN-I30SEP2013 Month End SEP 2013 MONTHLY SUMMARY REPORT Page 2
Grand Total
NBR OF PARTS PERCENT PARTS PIECES PERCENT PARTS COST PERCENT TRANS COUNT ------------ ------- ------------ ------- -------------- ------- -----------Gross Sales 1,865 8.76 7,571 198,025.80 4,422 Regular 1,691 90.67 6,862 90.63 176,242.25 88.99 4,031 No History Drop Ship Wholesale 226 12.11 703 9.28 21,044.35 10.62 385 Wholesale No History Wholesale Drop Ship Warranty 6 0.32 6 0.07 739.20 0.37 6 Warranty No History Warranty Drop Ship
Lost Sales 75 0.35 122 7,695.22 77
Return Sales 356 1.67 887 28,930.86 432 Regular 308 86.51 700 78.91 25,910.34 89.55 371 No History Defective Wholesale 49 13.76 187 21.08 3,020.52 10.44 61 Wholesale No History Wholesale Defective Warranty Warranty No History Warranty Defective
Inventory Movement - Sales 0 to 3 Months 120,492.68 691,386.90 115,231.15 1,425,073.72 118,756.14 4 to 6 Months 24,952.60 181,854.29 30,309.05 377,496.62 31,458.05 7 to 12 Months 34,235.74 217,102.02 36,183.67 540,293.27 45,024.44 Over 12 Months 63,839.75 317,564.76 52,927.46 456,685.08 38,057.09 New Parts No Sales 12,244.11 97,690.56 16,281.76 234,080.28 19,506.69Non-Productive Parts Excess Stock MNS < 12 71,214.05 428,354.84 71,392.47 869,005.03 72,417.09 Stock MNS > 11 51,688.90 279,179.68 46,529.95 456,539.26 38,044.94 NS Parts Not Sold 37,840.68 227,539.74 37,923.29 433,168.60 36,097.38New Obsolescence Stock 9 Months 2,398.41 25,143.46 4,190.58 75,462.11 6,288.51 NS Parts 2 Months 2,097.29 21,595.73 3,599.29 49,998.38 4,166.53Early Phase In NS Parts With YRSL > 2 1,221.51 10,256.10 1,709.35 27,887.70 2,323.98
True Turn 4.23 4.55 4.60Purchase to Stock Ratio By Number of Parts 43.51 43.31 43.59 By Piece 81.74 81.98 82.12 By Cost 56.45 58.35 59.81Sales Closing Ratio By Number of Parts 95.26 93.83 93.81 By Piece 98.20 98.07 98.16 By Cost 95.64 94.23 94.50Demand Filled from Stock Ratio By Number of Parts 39.45 38.19 38.29 By Piece 79.25 78.11 79.25 By Cost 51.04 51.90 53.12NS Parts Sales Efficiency 106.44 105.91 107.79
AUTO/MATE, INC. COMPANY: CAMPBELL'S CRAZY CHRYSLERS RUN DATE: 10/17/2013
EOMCLOSE PARTS INVENTORY / POS RUN TIME: 11:09
PAGE 1 INVENTORY MANAGEMENT REPORT - RPT ONLY RUN BY: RUN_DMC
ANALYSIS FOR MONTH ENDING 10/17/2013 VENDOR = chry
New Vehicle Used VehicleNew Vehicle Supply in days 109.3 59.1 57.7 Used Vehicle supply (in days) 45.8 53.7 52.0 Number of units older than 90 days 37.5 28.3 26.7 Number of units older than 90 days 18.5 25.0 20.0 Units per salesperson ( New) per month 10.8 10.4 10.3 Units per salesperson ( N&U) per month 14.2 12.5 16.4 Gross Cars ‐ before F&I 1,100$ 1,363$ 2,680$ Gross Cars ‐ Before F&I 1,526$ 1,962$ 2,249$ Gross Trucks ‐ before F&I 1,238$ 1,363$ 2,722$ Gross Trucks ‐ before F&I 1,814$ 1,755$ 2,057$ Sales Ratio: new to used 1.6:1 1:1.7 1:2.1
Gross Productivity Gross ProductivityNew Vehicle Used Vehicle
Gross profit as a % of sales 5.6% 7.1% 7.6% Gross profit as a % of sales 9.9% 10.9% 7.2%Net profit as a % of sales 0.3% 1.7% 1.9% Net profit as a % of sales 2.6% 3.3% 2.1%
F&I penetration Rate% F&I Penetration Rate %Finance contract (exc retail lease) 68.6% 72.9% 60.7% Finance Income (excl retail lease) 53.4% 51.7% 58.1%Finance contract (inc retail lease) 72.9% 69.1% 72.5% Insurance 24.5% 21.1% 13.4%Insurance 23.6% 24.6% 8.0% Extended Service 43.1% 40.6% 30.6%Extended Service 50.8% 44.6% 16.2% Finance Gross per financed vehicle 626$ 631$ 652$ Finance Gross per financed veh. 697$ 530$ 729$ Insurance Gross per insured vehicle 406$ 333$ 410$ Insurance Gross per insured veh 477$ 330$ 399$ Ext Service Gross per contract 674$ 901$ 780$ Ext Service Gross per contract 821$ 715$ 692$
Expense Control Structure Guidelines Expense Control Structure GuidelinesNew Vehicle Used Vehicle
Total expense as a % of vehicle G/P 93.4% 89.0% 88.1% Total Expense as a % of Total G/P 92.3% 84.3% 83.1%
Compensation as a % of veh GP Compensation as a % of veh GPSalesperson 24.1% 19.8% 17.7% Salesperson 25.1% 20.1% 24.0%Supervision 21.5% 15.9% 17.0% Supervision 17.9% 14.7% 14.0%F&I comp as % of F&I income 23.0% 27.5% 22.1% F&I comp as % of F&I income 22.5% 26.6% 22.6%Personnel Exp as a % of G/P 42.3% 44.4% 39.9% Personel Exp as a % of G/P 38.0% 35.0% 42.2%Advertising as a % of Veh G/P 19.6% 15.4% 11.4% Advertising as a % of Veh G/P 12.7% 11.6% 15.6%Advertising per retail unit sold 321$ 277$ 309$ Advertising per retail unit sold 280$ 262$ 327$ Floor plan int as a % of Veh G/P ‐7.3% ‐6.9% ‐6.4% Floor plan int as a % of Veh G/P 1.4% 2.0% 1.2%
Expense Control Structure Guidelines Net profit as a % of Sales 11.4% 12.7% 13.7%Service Dept.
Total expense as a % of Total GP 79.8% 82.1% 77.9% Expense Control Structure GuidelinesParts Dept.
Personnel Exp as a % of G/P 41.9% 40.2% 40.9% Total Exp as % of Total G/P 51.9% 66.2% 59.3%Adv & Training as a % of G/P 7.2% 3.6% 3.8%Tools, Supp, Freight as a % of G/P 1.5% 0.9% 1.2% Personnel Exp as a % of G/P 32.3% 33.2% 28.8%
Advertising & Training as a % of G/P 3.0% 1.9% 1.5%Tools, Supp, Freight as a % of G/P 1.1% 1.1% 1.1%
Domestic Import HighlineFixed Expenses ‐ Percent of Total Gross Dealer Dealer Dealer Domestic Import HighlineOffice Staff to Total Dealership 1:10 1:10 1:12 Fixed Expenses ‐ Percent of Total Gross Dealer Dealer Dealer
Absorption % 78.4% 81.7% 90.7%Total Expenses as a % of Total Gross 92.0% 84.1% 81.6%Payroll Taxes as a % of Total Gross 4.8% 4.4% 4.2% Net Earnings
% of Total Sales 3.1% 3.5% 4.1%Owners Compensation as a % of Sales 0.7% 0.7% 0.8% % of Total Gross 28.3% 24.9% 31.8%
Rent Factor Personnel Expense as a % of Gross profit 44.2% 42.9% 40.9%Percent of Total Gross 7.7% 8.4% 10.0% Office Compensation as a % of Total Gross 4.2% 4.4% 3.5%