Skip to content
Einstein Tools EINSTEIN TOOLS Get started
menu
Dismantling and inventory

A part that is not listed does not exist

The payback clock on a vehicle starts the day you buy it, not the day the parts reach the shelf. Everything that happens in between is time the car owes you and is not paying.

A vehicle takes about two months to pay for itself Unfilled part searches run into the millions

Ask a yard how long it takes to dismantle a car and you will get an answer in hours. Ask how long it takes for that car’s parts to become findable — stock-numbered, interchanged, priced, visible to a search — and the answer is usually a shrug and a number in days.

The gap between those two answers is where a surprising amount of money sits.

The clock does not wait for your paperwork

A dismantled vehicle typically takes something like two months to pay for itself, and only a portion of its total value leaves the door inside the first quarter. That clock is counted from acquisition, because that is when the money left your account.

~2 months is a fair estimate of when a dismantled vehicle breaks even. A week of inventory lag is a tenth of that window spent on a car that cannot sell anything.

So a car that sits four days waiting for teardown, and then another five days as a pile of untagged parts on a rack, has spent nine days of a roughly sixty-day payback window unable to earn. It is not idle inventory. It is inventory that does not exist yet, and the difference matters: idle stock at least shows up when someone searches for it.

The demand does not wait either

Across a brokered parts network, a very large number of part searches come back empty every day with nothing to quote. The single largest block of those misses is collision parts: bumper covers, headlights, fenders and hoods.

Those are not exotic parts. Every yard has them. They are the parts most likely to be pulled off a car, stacked somewhere sensible, and never given a stock number — which makes them invisible to every search in the country while they sit ten feet from the counter.

Some share of that is genuine shortage. Some share of it is inventory lag, and no yard knows which share is theirs, because the search that missed them left no record on their side.

What the inventory step actually costs

Here is the arithmetic, using round numbers rather than measured ones — put your own in and the shape will not change. A yard processing 40 cars a month at 90 catalogued parts a car is creating 3,600 inventory records a month. At two minutes a part — interchange lookup, condition and damage codes, grade, stock number, location, photographs — that is 120 hours. Three and a half weeks of one person’s time, every month, spent typing.

Trim it to 75 seconds a part and you free up roughly 45 hours a month. That is the whole argument for doing this well, and it has nothing to do with technology: the inventory step is the largest single block of labour in a recycling yard that produces no parts and no sales.

It is also the step most likely to be deferred when the yard gets busy, which is exactly when the inventory is most valuable.

Wrong is worse than late

A part with no stock number is invisible. A part with the wrong interchange is worse: it is visible to the wrong searches and invisible to the right ones. It will be quoted to someone who cannot use it, come back as a return, and stay on the shelf while the correct buyer is told nobody has one.

The same applies to condition and damage codes. A grade-A door listed with no damage code will be sold over the phone, shipped, and returned at your cost when the buyer finds the crease. Returns are the most expensive way to discover a data entry problem, and they are the reason the fastest yards are not the ones typing quickest — they are the ones capturing the part once, correctly, at the point where somebody is actually looking at it.

What good looks like

The two numbers to start tracking

Most yards can produce neither of these on request, and both are more useful than anything on the monthly P&L:

Neither number requires new software to start measuring. Both of them tend to be uncomfortable the first time you look.

About these numbers

The payback and unfilled-search observations come from aggregate industry data across a large number of yards and vehicles. They are described in general terms on purpose: the point is the shape of the problem, not a benchmark to measure yourself against.

The labour arithmetic in this article is a worked example, not a measurement — 40 cars, 90 parts, two minutes each are round numbers chosen to show the shape of the cost. Substitute your own and the conclusion holds: the inventory step is the biggest block of non-productive labour in the building.

Getting parts from the car to the shelf faster

AutoInventory is built for exactly this step — capturing a part once, correctly, at teardown, so it is searchable the same day instead of the following week. If your inventory lag is measured in days, that is the number it is designed to move.

Talk to us about AutoInventory arrow_forward