What is a Vehicle Inventory?
A vehicle inventory is a database of vehicles listing unit-specific information for the reference of potential buyers in the case of car dealerships, or assigned personnel in the context of company-owned vehicles. Vehicle inventory management is essential to data organization for both the internal and external purposes of a company. Poor vehicle inventory practices can lead to problems such as imbalanced accounting, and over-/under-supply of stock.
Importance
Regularly performing vehicle inventory can help you keep track of all your vehicles and their associated information and details. Because of vehicle inventory, locating a specific vehicle becomes easier, more efficient, and accurate.
There are many benefits to having an accurate vehicle inventory list, such as when you are preparing to sell one of your cars.
Some reasons to keep track of your vehicle inventory include:
- To keep an up-to-date list of all your vehicles and their associated information
- To have a tool for managing your inventory
- To prepare to sell a vehicle
- To document when and where a vehicle was last used
- To have an insurance claim in the event of an accident
The Consequences of Poor Vehicle Inventory
Companies may have different approaches to vehicle inventory depending on their primary purpose. Regardless, poor vehicle inventory practices can lead to issues that affect multiple aspects of a business. Below are some of the consequences of poor vehicle inventory:
Over or understocking
Without an accurate reference to what is currently in stock, poor vehicle inventory practices may lead to companies ordering fewer or more than what is necessary. This can lead to product demands not being met due to shortage or product stagnation due to surplus.
Reduced profitability
Understocking hurts profitability by failing to capitalize on sales opportunities. Overstocking hurts profitability as unsold products stagnate and gradually lose value. Both are common issues associated with poor vehicle inventory management.
Bad customer experience
If a business cannot provide the product that customers demand, the sale eventually goes to a well stocked, better organized competitor. With the multitude of options available on the market, one bad experience may be enough to lose a customer’s business for good.
Excessive warehousing expenses
Overstocking is even more problematic once you realize that you will also need to spend money storing your excess supply. Regardless if you pay for warehouse rent or you are using space that could have been utilized better, you are suffering from inefficiency that could have been prevented by proper vehicle inventory management.
What is a Vehicle Inventory Checklist?
A vehicle inventory checklist is a form or template used to track the various details of a vehicle. It can be used to keep track of a personal vehicle, as well as for businesses to keep track of a fleet of vehicles. It can also be handwritten or it can be electronic, and it can be kept in paper form or on a computer.
A vehicle inventory checklist can be used in a variety of ways, but its main function are:
- For personal use – a vehicle inventory checklist can be helpful in tracking the maintenance and repairs that have been done on a vehicle. It can also help in keeping track of the car’s value over time.
- For businesses – a vehicle inventory checklist can be used to track the movement of vehicles in and out of the business, as well as the condition of the vehicles. This can help in ensuring that all vehicles are accounted for and in good condition.
What to Include?
When creating a vehicle inventory template, you’ll want to be sure to include the following main specs:
- Location
- Stock Number
- Exact Mileage
- Year Made
- Model
- Body Style
- VIN
- Color
- Transmission Type
- Wheels
- Passenger Capacity
- Fuel Type
You can then further add other specifications you’d want included in your vehicle inventory checklist.
