In April’s column, I explained the processes and paperwork we use for our initial contact with customers. One of the next steps in moving a job through the shop is the parts ordering and handling process. Some shops, larger ones in particular, may have automated this process and may have one or more employees dedicated to a parts department. We’re not at that stage at this time, but we have found some processes and forms that work well for us and keep parts-related headaches to a minimum.
We start with the parts order form that we can print from either our estimating or shop management system. Each includes slightly different information in different formats, so choosing which to use for parts ordering is largely a matter of personal preference.
We fax that parts sheet to the appropriate vendors and then date-stamp it to indicate when it was faxed. Most vendors are very good about following up with us within an hour of our faxed order to ask for any clarification that may be needed and to tell us when to expect to see the parts.
We use a green highlighter to place a dot next to each part on the list after it has been ordered. We make any notes on this sheet about potential delays in delivery or additional parts we suspect will be needed once the vehicle arrives.
As with all our paperwork, the parts order form then gets placed in the clear plastic file jacket we maintain for each job. In order to be able to find it quickly, we keep it in the back of each file jacket, with only parts invoices behind it. We’ve found that keeping things in a standardized order within each jacket quickly becomes a habit when employees see how much time they save not having to rifle through a sheaf of papers each time to find what they’re looking for.
All of our parts vendors deliver parts labeled with at least our repair order number on the part. (Some vendors include even more information on this label, such as the make and model of the vehicle, the parts invoice number, etc.) Their delivery drivers know where the racks in our shop are for all incoming parts.
When a parts invoice is dropped off in our office, we date stamp it as well. We’ve found this helpful when insurers have questions about when parts were delivered. Invoices are often dated when the parts were ordered or the invoice printed, which may be the day before we receive them.
We then compare the parts invoice to our parts order form, checking off the parts that have been received, confirming the part numbers and noting (on the parts order form) any changes in pricing. We also write an “S” on the invoice next to any parts price changes. Again, this ensures that all the information needed for a supplement or final bill are in the job file jacket when needed. A large difference in price also prompts us to check the part itself to make sure we received what is actually needed.
This process also prompts us to follow up on any parts not yet received. Our management system allows us to make a list of such parts on a “task list” for each job. This is a list we review in our daily meetings, so we can usually avoid realizing at the last minute that there’s still a part that hasn’t arrived.
While under ideal situations, the parts would be checked against the vehicle immediately when the car comes into the shop, this doesn’t always happen. We do have technicians check all the parts against the work order as they start the job, and this generally allows enough time to handle any problems before they delay the repair process.
If there’s a part a technician ends up not needing, he places it on certain racks in the shop and informs the estimator so that adjustments can be made to the final billing. The estimator also marks a “0” on the invoice next to the part to indicate it was returned.
We created our own parts return form to help us track return credits. (One of our parts vendors asks us to use their form, but all the others accept ours.) It’s a two-page carbonless form that the parts driver signs when picking up returns; the driver takes one copy, and the other goes into our accounts payable file so we can check to make sure we receive the credit on the next statement from that vendor. The “0” on the parts invoice also prompts the bookkeeper to make sure there’s a parts return form in the files for that part.
If you have trouble getting parts delivery drivers to check for parts returns, consider hanging a dry erase board in your parts area and listing the companies for which you have parts to return.
Next time: Bringing some order to your job file jackets and the information that stays with the vehicle.
