Retail Inventory Management (RIM) programs are essential for OEMs and dealers to ensure the right parts are available in the right place at the right time. These programs enable OEMs to gain visibility into dealer inventory, improve supply chain efficiency, and drive higher parts sales. For dealers, RIM reduces excess stock, streamlines operations, and enhances customer satisfaction. This guide explores the key components, benefits, and challenges of RIM, providing insight into how OEMs and dealers alike can achieve operational excellence and commercial growth.
The Problem: Dealer Inconsistencies & Inventory Blind Spots
When assessing their network, most OEMs notice dealer-by-dealer inconsistencies that impact parts availability for end customers. While some dealers excel, most fall short. Compounding this issue, most OEMs struggle to accurately measure availability — and you can’t fix what you can’t see.
Dealers spend significant time optimizing their Data Management System (DMS) for parts replenishment, often leading to excess inventory, limited availability, and inefficient use of time. The challenge grows as dealerships expand, face higher turnover, and meet rising customer expectations.
The Solution: Retail Inventory Management (RIM)
At its core, RIM is a technology-enabled program that facilitates collaboration between OEMs and dealers to ensure the right parts are stocked in the right locations in the right quantities. For OEMs, RIM programs provide enhanced visibility, allowing them to monitor dealer inventory status in real time.
RIM programs help dealers reduce excess stock, improve availability, and simplify employee workflows. By ensuring the right parts are in the right place at the right time, RIM programs boost customer satisfaction and drive higher sales volume. With a best-in-class, exception-based RIM system, dealers can manage replenishment and stocking decisions in as little as 15 minutes a day — freeing up more time to focus on customers.
How RIM Solves Key Challenges
- Visibility & Real-Time Insights: The first thing a RIM program delivers is visibility and the ability to measure dealer availability rates. As you move closer to the end customer, higher availability becomes increasingly critical. By measuring key factors such as availability, inventory investment, and other performance metrics, OEMs can identify areas for improvement, manage exceptions, and establish consistent KPIs across the dealer network.
- Dealer Inventory Consistency: By providing standardized stocking recommendations and automated replenishment, RIM programs ensure dealers maintain consistent inventory practices, reducing inconsistencies across the network.
- Reduced Complexity for Dealers: Dealers no longer need to manage replenishment manually through their DMS, reducing the chance of human error and operational inefficiency. Exception-based management means they only focus on outliers, saving significant time and effort.
The Benefits: Why OEMs and Dealers Win with RIM
For OEMs
Operational Benefits: Enhanced supply chain visibility, better demand tracking for non-stocked parts, and improved dealer stocking practices.
- Efficiency Gains: Lower return volumes reduced expediting costs, and better load management at parts distribution centers.
- Revenue Growth: Improved parts availability strengthens brand loyalty and drives higher sales. On average, OEMs see a 1% increase in sales for every 5% improvement in dealer availability.
For Dealers
- Simplified Inventory Management: Dealers spend less time managing stock, thanks to exception-based workflows.
- Reduced Excess Inventory: RIM programs optimize dealer inventory, reducing overstock and associated carrying costs.
- Increased Customer Satisfaction: Having the right parts in stock improves customer service, encouraging repeat business.
Making the Case for RIM
Both OEMs and dealers share a common goal of keeping end customers satisfied. Parts availability at the dealer level plays a critical role in achieving this. Beyond customer satisfaction, OEMs and dealers aim to sell more parts, foster brand loyalty to drive new product sales, and minimize inventory investment. An effective RIM program addresses all of these objectives, if supported by a robust and flexible technology solution. Any OEM that delivers products and services through a dealer network can benefit from a RIM solution. This applies not only to the automotive industry but also to manufacturers of construction equipment, agricultural machinery, and more.