Labor Hour Inventory

The service department’s most valuable resource is its inventory of labor hours and time. Unlike the New Car Sales and Parts department the service department does not have a tangible resource to manage. Most service departments do not take advantage of utilizing or correctly managing available labor hour inventory.

Most service department’s schedule or load customers into the shop based on the number of appointments and or repair orders written per day rather than available labor hours to sell.

Failure to manage labor hour inventory creates a missed financial net profit opportunity because once that “time” has passed the service department will never be able to sell it again.

This can amount to tens of thousands of lost hours and net profit dollars left on the table every month.

Therefore maximizing the service department’s available labor hours to sell on a daily basis is essential to the future profitability of a service department.

This process can most efficiently be managed by the correct use of your current (ADP, Reynolds & Reynolds and UCS) computer system.

Unlike most computer vendors we have the past service department experience in the day-to-day operations that we apply to make your computer system perform like it should.

Dealer Automated consultants will train and work on-site with your service staff to improve utilization in selling of labor hours/time with your computer system.

Take a minute and ask your Service Manager or Service Advisors how the service departments “labor hour inventory” is managed on a daily basis.