A Technology & Maintenance Council task force unanimously agreed Tuesday morning to support a recommended practice that provides general best practices and guidelines for proper and effective handling of core claims.
This includes clean versus dirty cores, warranty cores, return eligibility, acceptance criteria and managing the core holding area.
This RP includes the recommended practices for effectively managing core inventory, the intention to be a reference tool for service providers looking to improve on their core operations. There are many steps involved, and if procedures are not followed and requirements are not met, a lot of money is left out on the table for both service providers and fleets, according to chairman Mike Colaccino.
The RP is divided into the following sections:
- Commonly used terms and definitions
- Core handling process maps
- Recommended core handling procedures
- Processing a sale/purchase of a part with a core value
- Handling return of core parts
- Separating cores
- Determining core value for inventory purposes
- Periodical inventory / annual revaluation
- Controlling cores
- Management of core charges & business systems
The longer dead product sits on warehouse racks, the more money is being lost,” Coloccino says. “Find a way to recoup some of the money lost on these items. After all, the dead stock is captive dollars that can be converted into spendable cash.”
The task force recommended that each service provider and fleet appoint one individual as manager of the core processing for each facility or shop.