By Lucas Deal, Editor
lucasdeal@randallreilly.com
Operations
Handling
your core
business
Building a core management
procedure can maximize return rates
Y
ou wouldn't throw cash away,
or toss a pile of checks in the
trash. So why are there old
cores collecting dust in your
warehouse?
While they admittedly don't look or
smell like greenbacks — in the aftermarket — cores equal cash.
The more you return, the more you
earn.
Creating a core management plan in
your business will maximize your return
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rates. To build one, you must educate your
staff on the value of cores, promote core
acquisition, publicize core return policies
and follow through with actual returns.
Core return payments are made with
your money; you might as well get as
much back as you can.
"We believe tracking cores is no different than managing our accounts receivable," says Gary Troost, general manager
at Valley Truck Parts. "At the end of the
day, cores are money."
Schooling employees on how valuable
cores are is the first step to building a
management plan.
Suppliers affix a core charge to any
new or remanufactured product sold that
can be used in remanufacturing, and it's
that initial deposit that is returned to you
when you return a core.
Most core refund programs work using general acquisition rates. When you
purchase a dozen brake shoes, your supplier charges you for a dozen cores.
September 2013
8/22/13 4:15 PM
