Often times an organization may not realize the impact of not having the proper amounts of parts and supplies in the correct locations as well as the amount of waste due to obsolete inventory. Many times the impact of inefficiencies in these areas can be in the hundreds of thousands of dollars! While we expect that approximately 10 – 12% of service calls may involve hold for parts returns, we must also realize that when the percentages rise above these numbers we are effectively doubling the cost of labor on these calls as well as potentially reducing customer satisfaction. As populations change we must know which items in both parts and supplies must be ramped up to maintain adequate inventory levels. Conversely we must also know which items need lesser quantities to avoid obsolescence. The result of obsolete inventory is all too often simply throwing the items away and taking a loss. In essence, your service department’s success depends on having the right stock in the right place at the right time. The two parts of the organization are effectively joined at the hip and have a direct effect on profitability. Not enough inventory causes hold for parts calls while excess risks obsolescence. It is truly a balancing act that must be monitored closely. We have seen many time where full time technicians address nothing but hold for parts calls at a cost of hundreds of thousands of dollars a year.