Tire Shop Management

Controls on repair order parts can go a long way toward reducing shrinkage. Purchase and return transactions as well as issues to repair orders should be tracked and controlled by recording them in the repair shop software in use. Sometimes shops will process inventory without recording transactions and this leaves them open to losses. Recording

Labor is an area where losses can be incurred when invoices are paid in cash by the customer. Some methods of paying technicians have built in controls while there are some circumstances where shops are open to loss. The most effective control on labor sales is paying technicians based on the number of hours sold

For shops that carry inventory this can be an area where losses can easily occur. If replacement parts are carried in inventory or tires are bought in bulk then sold off the shelf – this is an area where shrinkage can occur. Shrinkage isn’t necessarily always caused by theft. Sometimes mistakes will occur resulting in

Assigning responsibility for functions that can leave a shop open to problems can be a very effective management practice. Of course – shops often don’t have the personnel to do this – but these are good practices where they can be applied. Allowing too much control in the hands of one person can be problematic.