Inventory management in the automobile industry
Learn more about inventory management in the automobile industry. In these articles we show you automotive industry inventory management techniques and methods. We cover analysis, tips, ideas and best practices for managing part numbers, inventory and more.
Management of a company’s inventory is used to make sure materials are available when needed. Raw materials and subcomponents, whether in-house or still in the supply chain, are used to create automotive finished goods and all of these require managing.
Companies in the automobile industry need to be able to measure their manufacturing costs as a management tool. It’s helpful to be able to react to changes in demands of the customer.
Inventory is critical to be able to produce finished goods but without strict management it can become a liability. It can also hurt cash flow.
Some of the best practices shown here are universal and apply across any industry. Some are specific to the automotive industry.
Excel formulas for inventory control in automotive inventory management
Here you’ll find articles where we show the Excel formulas to calculate Gross Margin Return on Investment (GMROI), Pareto 80/20 management tips, the Turn/Earn Index, and how to calculate the effects of price increases/decreases.
These Excel formulas are great tools for automotive business management and can save you a lot of time.
Inventory Excel formulas
This page points to several articles that have inventory Excel formulas. These include how to calculate gross margin, how to calculate gross profit, the Excel formula for GMROI and the Turn/Earn Index, and more.
We even have some examples in Excel of Pareto 80/20 analysis including SKU rationalization formulas. For more, scroll down.
Automotive inventory management and part numbers
We also include articles on ACES and PIES data and how many part numbers exist in the automotive industry. We also show SKU rationalization analysis tools with 80/20 analysis. This is useful information when planning or analyzing your inventory.