Inventory management: cutting dead stock in your spares section

Dead stock is the quietest drain in a workshop. It doesn't show up as a loss on any invoice — it just sits on a shelf, tying up cash that could be buying fast-moving parts, funding a new tool, or simply staying in the bank. A few disciplined habits can change that, and membership leverage makes them easier to keep.

First, see the problem

You can't fix what you don't measure. Before changing how you buy, get a clear read on what you're holding:

• Inventory turnover — how many times you sell through your stock in a year.
• Average days-in-stock — how long a part typically sits before it moves.
• The share of parts unsold for six and twelve months.
• Your carrying cost — what it actually costs to hold that stock.

Classify with ABC

Not every part deserves the same attention. A simple ABC split focuses your effort where it pays:

• A — a small number of parts that drive most of your value or movement: tight control, frequent review.
• B — moderate value and movement: sensible reorder levels.
• C — many low-value, fast consumables: simple bulk rules, don't overthink them.

Alongside this, keep a live fast-mover list for the vehicle parc you actually serve — the parts you must never be caught without.

Habits that free up working capital

1. 1Set min–max reorder levels for regular lines so you reorder on a trigger, not a hunch.
2. 2Review slow movers every quarter and act — return, exchange, discount or bundle.
3. 3Order slow, expensive parts just-in-time from a nearby distributor instead of stocking them.
4. 4Resist over-ordering to chase a scheme discount that ties up cash for months.
5. 5Negotiate return, exchange or consignment terms for high-value, low-frequency parts.
6. 6Digitise: even a simple inventory system with barcodes beats memory and a diary.
7. 7Stock to the vehicles you actually service — not to every make you might one day see.

The goal isn't an empty shelf or a full one. It's the right part, in the right quantity, turning over fast.

— AIAWA

The member advantage

Holding less stock only works if you can restock fast. This is where a collective earns its keep: negotiated pricing and faster supplier turnaround let members carry lean without turning customers away. Categorise parts by turnover, review slow movers every quarter, and let member pricing and quicker reorders do the rest — you free up capital without the fear of being caught short.