Motor Industry KPI and best practice provided by Jeff Smith

Dear Jeff, 

once again your ideas have inspired me! My dealer group (and I would expect most other peoples) have always purchased cars from auction, awaited the TT or cheque to clear, patiently allowed the Auction company to decide when to deliver, dawdled around whilst accounts/admin have booked the car into stock then begun selling (7-10 days!!).

Try this for fun: When the hammer is down, fax the stock list to base, get the cars onto Auto Trader within 30 minutes flat.

Next, enact your pre-arranged plan with your FD to get the funds THERE NOW! Now get the Auction company to earn their fees and deliver tomorrow not the next day and admin can book the cars in when they can; Cars on sale in 24 hours or less.

If I buy 20 cars and cars depreciate at £250 a month that is £8 a day. 20 times £8 is £160.We would have wasted 6-9 days or between £960 - £1440. I can think of a better use for that money! Is this what you meant by circulation of funds employed?

Best regards,

Darin Quaintance

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This entry was posted on Monday, July 21st, 2008 at 5:59 pm and is filed under Dealer Principal, Sales Department.