Local Services · Scenario 08

Auto Repair Shop

Cars wait for parts that should have been on the shelf, while cash sits frozen in parts that never move. We rebuild the stockroom around the math of when to reorder, and how much.

Method · EOQ + reorder-point modelling

The situation

A repair shop’s reputation is turnaround time, and nothing kills it like ‘we have to order the part’. Yet over-stocking to avoid that ties up thousands in slow-moving inventory and a back room nobody can navigate. The shop swings between stockouts and clutter — both expensive.

Reordering is done by eye when a bin looks low: no reorder points, no view of which parts actually turn, no link between a stockout and the rush-order premium and idle bay it causes.

27%

jobs delayed for parts

$41k

frozen in dead stock

By eye

how parts are reordered

reorder points set

Where we dig for the truth

We classify every part by how it moves and apply economic order quantity and reorder-point math so the right parts are always in, and the wrong ones aren’t.

Parts usage historySupplier lead times & costRush-order premiumsBay / job throughputCarrying-cost estimateStockout incidents

The eyeballed line keeps hitting zero — that’s a delayed car. A reorder point triggers restock before the bin runs dry, without overstocking.

Our approach — Inventory Optimization (EOQ & Reorder Points)

We rank parts by movement (an ABC analysis), then set an economic order quantity and reorder point for each fast and medium mover from its usage rate, lead time and cost. Slow and dead stock is flagged for clearance, freeing cash and shelf space.

The result is a simple reorder list the parts manager trusts: order this, this much, now — sized to minimise the total of holding cost, ordering cost and the rush-order premiums that stockouts force.

Stockouts on the parts that actually move collapse — while total inventory value falls, because the dead stock is gone.

What changes

Same suppliers, a stockroom run by numbers. Representative for an independent multi-bay shop.

Why this is not "social media management"

There's nothing glamorous about a reorder point, and that's the point. We didn't market the shop harder; we made it faster and leaner by running the inventory math the big chains use and the independents rarely do.

Frequently asked questions

How do you stop a repair shop running out of parts?

We classify every part by how fast it moves and set an economic order quantity and reorder point for each, so fast movers are restocked before the bin runs dry while slow, dead stock is cleared. Stockouts on the parts that matter collapse.

What are EOQ and a reorder point?

Economic Order Quantity is the order size that minimises the combined cost of holding and ordering stock. The reorder point is the inventory level that triggers a new order in time to avoid running out, given supplier lead time.

Will this just mean holding more inventory?

The opposite — total inventory value usually falls because cash tied up in dead stock is freed, while availability of the parts you actually use goes up. Book a marketing audit.

Want this run on your numbers?

Send a year of parts usage and we’ll set the reorder points that end your stockouts.