3 Inventory Management Priorities for 2024 | vAuto
As 2023 nears its end, it’s time to think back on the year and the trends we’ve experienced along the way. We can probably all agree that the one constant has been change. Over the past twelve or so months, used cars first appreciated and then depreciated in value. And the supply of new cars started low and then grew, leaving dealers with an excess of expensive electric vehicles (EVs) they couldn’t sell — and then the auto strike disrupted supply levels once again.
So, what can you learn from all of this change that will help inform your inventory management approach in 2024? You’ll most likely continue to experience industry-wide volatility in the coming year, including ongoing repercussions of the auto strike. But 2023 has taught us that with the right priorities and tools in place, you’ll always feel empowered to respond to current market conditions, no matter what they are.
As you plan for the coming year, ensure your success by keeping these priorities top of mind:
- Establishing Clear Strategic Objectives
Consider whether your dealership focuses more on gross, volume or both — and then set your objectives based on that strategy. If you can’t pinpoint your strategic objectives, you can’t optimize your operations accordingly. A clear strategy enables you to advance beyond simply managing your inventory, people and processes so you can start truly optimizing them.
- Aligning Your Processes
All of your inventory management processes — from used car appraising to acquisitions and pricing — should align with your strategic objectives. And, if you run a dealership group, you should standardize the way your stores handle appraising, acquisitions and pricing. vAuto’s ProfitTime® GPS leverages data science to help you align all of your processes related to used cars. The tool includes reports and dashboards that show you how many acquisitions and appraising decisions meet your strategy. And vAuto’s Conquest™ delivers the data you need for process alignment regarding new cars.
- Communicating With Your Team
Announcing your strategy isn’t enough if you actually want your team to adhere to it. Everyone on your staff needs to understand the strategic process-related tasks you need them to perform regarding appraising, acquisition and pricing. Make it clear that you’ll also use the tools available to you to track staff members’ performance and make informed staffing decisions. Again, it’s time to move from managing your team to optimizing it — and this transformation starts with clear, consistent communication.
If your team is on the same page, your processes are aligned and you’ve established clear strategic objectives, you’ll make the most of 2024 — no matter what happens with the market and the auto strike. The worst thing would be not knowing what to do to make money off your used or new cars. But with the right tools, you and your team will always know exactly how to respond to the conditions.
To learn more about how vAuto’s tools will help you succeed in 2024, request a demo today.