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Is the GM RIM Program

Working for you?


DO YOU KNOW!!
Your Investment in GM RIM
Controlled Parts?

Your Investment in Slow &


Non Selling Non RIM
Controlled Parts? Do You Have
a Plan for cleaning up these
parts?

Your Turn Ratios, Fill Ratios and Days Supply For RIM
Controlled and Non RIM Controlled Parts?

Let BOB PEARSON ENTERPRISES, LLC answer


these questions and much more!

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BOB PEARSON ENTERPRISES, LLC
RIM Program Analysis & Setup Objectives
While in Dealership

1.) Review of RIM Program:

A.) General Motors RIM is a parts ordering (stock replenishment) program


which will automatically calculate stocking levels for General Motors
RIM controlled parts. Parts Manager will select parts to be controlled by
RIM and GM=s RIM system establishes stocking levels based upon
dealerships sales history (Frequency Classification Code) for each part
and other criteria (Strta Code) established by General Motors. RIM will
automatically order/replenish part inventory for RIM controlled parts
daily.

2.) Review inventory control system setups relating to sourcing as well as phase-in
and phase-out criteria.

A.) Review all set ups relating to Phase-In and Phase-Out criteria as well as
ordering procedures for Non RIM Controlled parts. (Make changes as
required).

B.) Establish sourcing for RIM Controlled parts (State Code 02, 04 and 05).

C.) Establish menu and maintenance sources for RIM Controlled and Non
RIM Controlled as needed.

D.) Establish sources for Non RIM controlled (State Code 01, 03 and 07) to
allow Parts Manager to calculate stock orders as needed.

E.) Establish source for State Code 09 (Slow & non selling) parts to allow for
monthly returns.

F.) Review State Code 00 (Non Carline Parts), and verify sourcing.

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BOB PEARSON ENTERPRISES, LLC
RIM Program Analysis & Setup Objectives
While in Dealership

3.) Review with Parts Manager processing a RIM parts return with the RIM
Website and related functions in Dealer=s Inventory Control System.

4.) Inventory analyzation for RIM Controlled and Non Rim Controlled.

A.) Identify Non RIM Controlled slow and non selling parts to be returned to
carline or scrapped and removed from parts department.

B.) Review with Parts Manager, adding part numbers with the RIM Program.

C.) Review Special Order Procedures and ensure parts department has
procedures in place to take advantage of RIM=s 90 Day CSO return for
special orders not delivered to customer.

D.) Review Inventory Gross Turns, Days Supply and Fill Ratio=s for both
RIM Controlled and Non RIM Controlled part numbers.

5.) Review parts department profitability.

A.) Calculate cost to break even.

B.) Establish pricing policies.

C.) Review parts department expenses.

D.) Calculate profit or loss by sales account.

E.) Comparison of parts accounts (current month to prior year same month).

6.) Review with Parts Manager Parts Department Policies and Procedures as
outlined by Bob Pearson Enterprises LLC

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Proof We Can Make the
RIM Program WORK!
BOB PEARSON ENTERPRISES, LLC
Parts RIM Program Analysis

1.) This parts inventory analysis was completed for General Motors Buick/Pontiac/GMC
dealership that went live with RIM Program April 26, 2006. The Parts Manager has
thirty (30) years General Motors Dealership experience and is a highly qualified
professional that has always run a profitable well organized parts department. Bob
Pearson Enterprises LLC has worked with Parts Manager since 1982 developing
parts department policies and procedures relating to inventory control and profitably.
Dealership does not have a body shop, but does have a body shop affiliated with
dealership. Wholesale sales are limited to local market area.

2.) At of RIM Go Live Date (April 26, 2007) parts department Aon shelf@ inventory value
totaled $156,697.00.

A.) Parts department was in the Power Train Program at time of Go Live Date.
Dollar value of engines and transmissions totaled $40,988.00. Dealership is no
longer in the program and these are not being reordered in truck load amounts.

B.) At the time of RIM Go Live date dollar value of AAP@ (Automatic Phase-Out)
parts totaled $6,967.00 (4.4% of total inventory). (Guide established by Bob
Pearson Enterprises LLC is 10% or less of total inventory).

C.) At the time of RIM Go Live date dollar value of ANS@ (Non Stock) parts
totaled $4,854.00 (3.0% of total inventory). (Guide established by Bob Pearson
Enterprises LLC is 5% or less of total inventory).

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Parts RIM Program Analysis

D.) At the time of RIM Go Live date dollar value of Normal Stock parts totaled
$132,044.00 (84.2% of total inventory). (Guide established by Bob Pearson
Enterprises LLC is 80%-85% of total inventory).

E.) Parts department had a 42.3 days supply as of RIM Go Live Date. (Guide
established by Bob Pearson Enterprises, LLC will be a 45 days supply).

F.) Inventory gross turn ratio totaled 8.4 turns per year as of RIM Go Live date.
(Guide established by Bob Pearson Enterprises, LLC will be 4.5 to 8.0
gross turns per year).

3.) Report 2219 (RO Fill) was run prior to RIM Go Live date and again March 20,
2007. This report lists fill ratio (parts availability) of part numbers required for
mechanical service department. The OSF equals availability of part numbers in
stock (off shelf fill). The SDF indicates percentage of part numbers available for
technicians (same day requested). If part numbers were not in stock, they were
purchased from outside vendor for repair of vehicle. RIM Program has had no
impact on Aoff shelf@ fill ratio. AOff shelf@ fill has not improved.

A.) As of RIM Go Live Date (Report run for period January1, 2006 to April 26,
2006) OSF totaled 83.9% and SDF totaled 89.3% for total inventory.

As of March 20, 2007 (Report run for the period April 26, 2006 to March
20, 2007). OSF totaled 82.9% and SDF totaled 89.0% for total inventory.
(After eleven (11) months on RIM Program).

4.) Fill rate for RIM Controlled parts (State Code 02, 04 and 05) calculated to be
87.8%. (Information to calculate taken from 2233 (Piece Sales Report) and 2249
(Out Of Stock Report). (Parts department has 88% of the parts numbers
recommended for RIM Control).
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Parts RIM Program Analysis

5.) As of March 20, 2007 parts department has been on RIM Program approximately
eleven (11) months (RIM Go Live April 26, 2006). AOn shelf@ inventory value totals
$149,651.00.

Excluding engines and transmissions ordered on Power Train Program Aon shelf@
inventory has increased $25,659.47 (22.1%) since RIM Go Live date.

A.) Parts department was in the Power Train Program at time of Go Live Date, but
parts department has dropped out of program. Dollar value of engines and
transmissions total $8,285.00 as of March 20, 2007. Dealership is no longer in
the program and these are not being reordered in truck load amounts.

B.) As of March 20, 2007 dollar value of AAP@ (Automatic Phase-Out) parts total
$15,601.00 (10.4% of total inventory).

1.) RIM controlled AAP@ parts totals $8,348.00. These parts will be RIM
protected as long as they are sold and reordered under RIM Program.

2.) Non RIM controlled ANS@ parts totals $8,653.00. Dollar value of Non
RIM controlled ANS@ parts eligible for RIM 90 Day CSO return totals
$6,091.00. Non RIM Controlled ANS@ parts not eligible for RIM 90 Day
CSO return totals $2,562.00, this dollar amount includes aftermarket
parts, tires and accessories.

D.) As of March 20, 2007 parts department had a 45.9 day supply of
inventory.

RIM Aon shelf@ inventory (State Code 02, 04 and 05) totals $103,864.00 as of
March 20, 2007. (Information taken from 6910 report, Inv Value By Source).
Twelve (12) month parts cost of sales for State Codes 02, 04 and 05 totals
$495,948.00 (Information taken from 2233 (Piece Sales Report).

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Parts RIM Program Analysis

As of March 20, 2007 days supply for RIM Controlled parts (State Code 02, 04 and 05)
calculated to be 75 days supply.

E.) Inventory gross turn ratio calculated to be 7.8 turns per year for total
inventory as of March 20, 2007.

Inventory turn ratio for RIM Controlled parts (State Code 02, 04 and 05)
calculated to be 4.7 turns per year as of March 20, 2007.

6.) 6910 report, Inventory Value By State Code, was set up. This report will list parts
department Aon shelf@ inventory dollar value by RIM State Code. Total Aon shelf@
inventory value listed on this report totals $150,425.00.

A.) RIM Controlled part numbers (State Codes 02, 04 & 05) totals $104,236.00.
This is 69.2% of total inventory.

B.) RIM part numbers recommended for RIM Control but excluded from RIM
Control by Parts Manager (State Codes 03 & 07) totals $11,016.00. This is
7.3% of total inventory. This dollar amount includes Engines, Transmissions
and bulk Freon.

C.) Part numbers not eligible for RIM Control (State Codes 01) totals
$12,570.00. This is 8.3% of total inventory. This dollar amount includes
Direct Ship Chemicals, Accessories, Bulk Oil and Bulk Transmission Fluids.
Parts Manager ordering these on QPO orders. These orders will continue to
earn General Motors Return Reserve.

D.) Non Carline (aftermarket) parts (State Code 00) are Non Rim Controlled.
Dollar value of these parts totals $11,971.00. This is 7.3% of total inventory.

Page 7
Parts RIM Program Analysis
E.) State Code 09 is default value for initial ERA set up of GM part numbers
when dealer goes live on RIM. Part numbers with State Code 09 totals
$11,971.03. These are Aslow and non selling@ parts that do not justify
stocking based on criteria established by General Motors and Special orders
added to Inventory Control System. This is 7.9% of total inventory.

1.) Dollar value of Customer Special Orders ordered after RIM Go Live
date totals $6,091.92. Special orders ordered as CSO after RIM Go
Live date will be eligible for ninety (90) Special Order Return.

7.) Non RIM Controlled part numbers with no sales in seven (7) months or more totals
$5,238.32 as of March 21, 2007. These are the slow and non selling parts not
protected by RIM that must to returned to General Motors, Delco supplier or
written off and removed from parts department.

As of March 21, 2007 parts department has $6,211.80 in Scrap Allowance account
that has been established using a portion of Discounts and Allowances. Parts
department also has approximately $600.00 in General Motors Return Reserve and
approximately $900.00 in Delco Return Reserve. Parts department has
approximately $7,711.00 in scrap allowance and return reserve, this will allow for
inventory protection on all current slow and non selling part numbers.

We can Help you with your


RIM Program!

Call Today!
1.866.831.0295

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