Improve Inventory Turnover with MAXDigital

Inventory Turnover

One of the best indicators of how your dealership is performing is your inventory turnover ratio. The formula is simple:

Take a number of days in a given period (e.g. a year)

and divide it by the amount of inventory sold at your dealership.

Once you have your dealership’s ratio, how do you interpret whether it’s good or bad? In the case of inventory turnover, the lower the better. The lower your number, the more your inventory moves, and the more money your dealership is making. If you have a high number, your inventory is stagnating and you are losing out on sales.

It’s obvious that a decrease in inventory turnover would result in a loss of sales, but what causes a decline in turnover?

Even if your inventory turnover ratio is low, there’s always room for improvement.

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Acquire the right cars with MAXDigital and improve inventory turnover.

Rates of inventory turnover can be influenced by a number of factors, so it’s important to have a system that tracks, manages, and sorts your inventory.

MAXDigital’s Inventory Management Platform is designed to do just that. Our comprehensive suite of products was designed with dealerships in mind. The Inventory Management Platform seamlessly integrates with your DMS to give your dealership an advantage. We help you better understand what cars you have on your lot and what cars you should acquire in the future.

Even if your inventory turnover ratio is low, there’s always room for improvement. Our tools can help your dealership determine which cars are the hottest selling vehicles based on your unique history. This data that can be used to see which vehicles in your inventory are at-risk, and it can direct you to smarter stocking choices down the road.

With over 15 years of experience in the automotive industry, MAXDigital offers expertise and technology that solve the real and relevant problems facing dealerships. Contact us for more information or schedule a demonstration to see our work in action.