Auto Parts Inventory Management NZ: Best Practices for Mechanics

Parts inventory is often the largest investment in a workshop after equipment. Poor inventory management leads to lost sales from stockouts, cash tied up in overstocking, waste from expired parts, and losses from theft due to poor tracking.

Start with a complete inventory count, recording quantities, locations, and condition. Categorise parts into fast-moving items like oil filters, medium-moving items like alternators, slow-moving specialty parts, and obsolete items. Set reorder points based on minimum stock levels, reorder quantities, and supplier lead times.

Link every part to a work order to know exactly where parts go, price jobs accurately, identify usage patterns, and prevent theft. Monitor key metrics like stock turn, fill rate, margin by category, and dead stock value. Effective inventory management directly impacts your bottom line through improved cash flow and faster job turnaround.