Key Performance Indicators (KPI)
The Key Performance Indicators (KPIs) available in IntelliDealer are:
| KPI | Definition | Formula |
|---|---|---|
| Absorption Ratio (%) | Represents how much the department’s net income absorbs the dealership’s equipment, rental and administration, and interest expenses. It should not be the responsibility of the parts department alone; every department should be responsible. | (Total Net Income for the Parts Department minus parts administrative expenses) divided by (Equipment Department expenses plus Rental Department expenses plus Administration Department expenses plus all department “administration” expenses plus all department non-5 interest expenses). |
| Average Days To Invoice | Represents the average number of days it takes to process a work order once it has reached the service department. This figure is calculated using data from the previous 12 months. | Days Analysis - Start to Billing Average. Retrieves the Service Analysis information for the previous 12 month period. |
| Average Pieces per Part Number | Represents the average number of pieces per part number at the dealership. | Total number of pieces (quantity) divided by the total number of part numbers. |
| Average Pieces per Part Number (Requisitions) |
Represents the average number of pieces per requisition-related part number at the dealership. |
Total number of pieces (quantity) divided by the total number of part numbers. |
| Billing Efficiency | Represents the dealership's service billing efficiency by comparing actual versus potential revenue. |
The Efficiency Analysis Recovery Income % from Service Analysis for the previous 12 month period. |
| Break-even Point ($) | The department sales required to provide a department gross profit equal to the total expenses of the department. In other words, the amount of money the department needs to make in sales to not lose money. | Department expenses divided by the department gross margin percentage. |
| Calls to Close Ratio | This ratio represents the average number of sales calls made for each unit sold. | Sales department calls divided by the Total Units Sold. |
| Contribution to Total Sales (%) | Represents the percentage of the entire dealership’s sales that can be contributed to a specific department. | Parts sales divided by total sales in all departments times 100 |
| Contribution Ratio (%) | Represents how much the department’s gross profit contributes towards the entire dealership’s expenses. | (Department sales minus cost of sales) divided by Total Company Expenses + Interest Expense |
| Coverage Ratio (%) | This ratio indicates the amount of sales calls that do not result in a sale. | The Number of Equipment Lost Sales divided by the Total Number of Calls made by the Sales Department. |
| Customer Contact Coverage | Represents the percentage of all the customers contacted each month and then averaged over a 12 month period. | Assuming customers should be contacted once a month:
For each month, Total Customers divided by Total Unique Customers Contacted divided by 12. |
| Department Expenses % Gross Profit (%) | This ratio indicates the relationship of department expenses to department gross profit. A lower percentage is better since that means expenses are low and profit is high. | Expenses divided by (Sales minus cost of sales) times 100. |
| Department Expenses % Sales (%) |
This ratio indicates the relationship of department expenses to department sales. A lower percentage is better since that means expenses are low and earnings are high. |
Department expenses divided by department sales times 100. |
| Department Net Income (%) | The Department Net Income ratio tells you how much profit a department makes for every $1 it generates in sales. The higher a department profit margin, the better. | Sales minus cost of sales minus expenses) divided by sales. |
| Department Net Income Gross Profit (%) | This ratio indicates how much of the dealership’s Gross Profit can be attributed to a specific department. | (Sales minus Cost of Sales minus Expenses) divided by (Sales minus Cost of Sales) x 100. |
| Dollar Value per Document | Represents the average dollar amount on invoices billed from a specific department. | Total Sales divided by the Number of Documents. |
| Dollar Value per Part Number | Represents the average amount of revenue generated from parts sales in the parts department. | Total Sales divided by the Number of Part Numbers. |
| Dollar Value per Part Number (Requisitions) | Represents the average amount of revenue generated from requisitions-related parts sales from the parts department. | Total Sales divided by the Number of Part Numbers. |
| Dollar Value per Piece | Represents the average amount of revenue generated from pieces sold in the parts department. | Total Sales divided by Number of Pieces. |
| Dollar Value per Piece (Requisitions) | Represents the average amount of revenue generated from requisitions-related pieces sold in the parts department. | Total Sales divided by Number of Pieces. |
| Dollar Value per Requisition | Represents the average dollar value of parts department requisitions. | Total Sales divided by Number of Requisitions. |
| Fixed Expense (%) | Expense ratios are calculated to ascertain the relationship that exists between the department operating expenses and the department’s sales. Expense ratios are calculated so to analyze the cause of variation of the operating ratio. It indicates the portion of sales which is consumed by various operating expenses. | “Fixed” Expenses divided by Sales x 100 |
| Gross Margin (%) | The gross margin for the department. The profit the department makes before expenses and taxes are taken away. | (Sales minus cost of sales) divided by sales x 100 |
| Gross Profit Per Salesperson | Represents the average gross profit generated by associates in a department. | The Gross Profit of your Total Sales divided by the Total Number of Salespeople. |
| Gross Turnover | The figure tells a company how many times it sells through its inventory balance. Selling through inventory more times in a year generally indicates a company has stable revenues, which typically lead to solid gross profit figures. Sometimes, the rate is low because a company is stocking up on goods in preparation for a big event, in which case the company may be perfectly healthy despite the fact that it has a low inventory turnover ratio. Conversely, extremely high rates can serve as an alert that a store may not be keeping adequate supplies in stock, and the consumers could be growing frustrated with a lack of options caused by poor inventory management. Companies must seek a balance when managing their inventory, using their funds wisely to generate the best returns. | The total cost of sales for the last twelve months divided by the current inventory at average cost. |
| Labor Efficiency | Represents the dealership's service labor efficiency by comparing hours worked versus hours charged. | Retrieve information from the Service Analysis application for the previous 12 month period. This Equates to the Efficiency Analysis Recovery Hours % |
| Lost Sales (%) | This ratio indicates the amount of sales calls that do not result in a sale. | The Number of Equipment Lost Sales divided by the Total Number of Units Sold. |
| Maintenance (%) | Represents the percentage of the dealership's labor that is made up of maintenance. | Maintenance (accounts coded as redo in ACCMAST) Labor Sales divided by Total Labor Sales. |
| Net Income (%) | The department’s total earnings (profit). This number is an important measure of how profitable the department is over a period of time. | (Sales minus cost of sales minus expenses divided by sales) x 100 |
| Net Income/Employee ($) | An important ratio that looks at a dealership's net income in relation to the number of employees they have. This ratio is most useful when compared against other dealerships. Ideally, a dealership wants the highest net income per employee possible, as it denotes higher productivity. In general, the higher the number, the more efficient the company uses its employees. There are no rules about what constitutes a good level of net income per employee, or a bad level. | Sales minus cost of sales minus expenses divided by the number of parts employees (table CMBR5). |
| Net/Forecast (%) | The department profit as a percentage of the department’s forecast (budget) profit. A positive number indicates that profits rose over the budgeted profit. A negative number indicates that profits declined over the budgeted profits. | (Sales minus cost of sales minus expenses minus budget sales minus budget cost of sales minus budget expenses) divided by (budget sales minus budget cost of sales minus budget expenses) times 100 |
| Net/Previous (%) | The department net profit as a percentage of the department’s previous period net profit. A positive number indicates that profits rose over the previous period. A negative number indicates that profits declined over the previous period. | (Sales minus cost of sales minus expenses minus previous “period” sales minus “previous” cost of sales minus “previous” expenses) divided by (previous “period” sales minus “previous” cost of sales minus “previous” expenses) times 100 |
| No Movement Inventory (%) |
This percentage refers to the amount of the entire dealership inventory that has had no sales or receipts in the previous 12 months. In other words, this is the percentage of inventory (dollars) that a dealership has tied up in parts that are sitting on shelves and not moving/selling. Note: This ratio can only be generated once at the end of the month by a Parts Month End. |
Average cost of parts with no sales in last 12 months and no receipts in the last 12 months divided by the total inventory value (average cost) x 100 |
| Non-Productive Inventory Dollars (%) |
The total cost of parts in inventory that should not be in your inventory because they have been identified as non-stocking. Note: This ratio can only be generated once at the end of the month by a Parts Month End. |
The total cost of PARTMAST (parts master) parts with an on hand > 0 and OFC 5 as a percentage of all parts with an on hand > 0. |
| Non-Productive Inventory Items (%) |
The total number of parts in inventory that should not be in your inventory because they have been identified as non-stocking. Note: This ratio can only be generated once at the end of the month by a Parts Month End. |
The total number of PARTMAST (parts master) parts with an on hand > 0 and OFC 5 as a percentage of all parts with an on hand > 0. |
| Number of Documents |
The total number parts invoices billed for the year. Note: This ratio can only be generated once at the end of the month by a Parts Month End. |
Read the MNBDH (monthly billing details) file. |
| Number of Part Numbers On Invoices |
The total number of part numbers on invoices for the year. Note: This ratio can only be generated once at the end of the month by a Parts Month End. |
Read the MNBDD (monthly billing details) file for total parts number sold on parts invoices. |
| Number of Part Numbers on Requisitions | The total number of part numbers on requisitions for the year. | Total number of parts numbers on requisitions. |
| Number of Pieces on Documents | The total number of pieces on invoices for the year. | Total number of pieces (quantity) of the part numbers on invoices. |
| Number of Pieces on Requisitions | The total number of pieces on requisitions for the year. | Total number of pieces (quantity) of the part numbers on requisitions. |
| Number of Requisitions | The total number of requisitions for the year. | Total number of requisitions for the year. |
| Operating Expense (%) | Expense ratios are calculated to ascertain the relationship that exists between the department operating expenses and the department’s sales. Expense ratios are calculated so to analyze the cause of variation of the operating ratio. It indicates the portion of sales which is consumed by various operating expenses. | “Operating” Expenses divided by Sales x 100 |
| Personnel Expense (%) | Expense ratios are calculated to ascertain the relationship that exists between the department operating expenses and the department’s sales. Expense ratios are calculated so to analyze the cause of variation of the operating ratio. It indicates the portion of sales which is consumed by various operating expenses. | “Personnel” Expenses divided by Sales x 100 |
| Policy Adjustment (%) | Represents the percentage of the dealership's labor that is made up of policy (goodwill) adjustments. | Goodwill/Policy (accounts coded as redo in ACCMAST) divided by Labor Sales. |
| Redo (%) | Represents the percentage of the dealership's labor that is made up of redo work. | Comeback (accounts coded as redo in ACCMAST) divided by All Labor Sales. |
| Sales Calls (%) | This ratio indicates the percentage of dealership calls that come from the equipment department. | The number of Sales Department Calls divided by the Total Number of Calls from All Departments x 100 |
| Sales/Employee ($) | An important ratio that looks at a dealership's sales in relation to the number of employees they have. This ratio is most useful when compared against other dealerships. Ideally, a dealership wants the highest revenue per employee possible, as it denotes higher productivity. In general, the higher the number, the more efficient the company uses its employees. There are no rules about what constitutes a good level of sales per employee, or a bad level. | Department sales divided by the number of department employees (table CMBR5). |
| Sales/Forecast (%) | The department sales as a percentage of the department’s forecast (budget). A positive number indicates that sales rose over the budget. A negative number indicates that sales declined over the budget. | (Sales minus sales budget) divided by sales budget times 100 |
| Sales/Previous (%) | The department sales as a percentage of the department’s previous period sales. A positive number indicates that sales rose over the previous period. A negative number indicates that sales declined over the previous period. | (Sales minus previous “period” sales) divided by previous “period” sales x 100 |
| Stock Order Efficiency (%) |
The stock order efficiency is the percentage of the orders you place with your suppliers that are on stock orders compared to the total orders you place with them. Note: This ratio can only be generated once at the end of the month by a Parts Month End. |
The total (cost) of stock orders divided by the total (cost) of all orders x 100 |
| True Turnover | True turnover is the gross turnover times the stock order efficiency. The stock order efficiency is the percentage of the orders you place with a supplier that are on a stock order compared to the total orders you place with them. | Gross Turnover multiplied by the Stock Order Efficiency |
| Warranty Recovery (%) | Represents the percentage of warranty the dealership is able to recover from a manufacturer. | Warranty Labor Sales divided by Over/Shortage Warranty Sales. |
| Work In Process Turnover | This ratio represents the percentage of labor cost of sales that can be attributed to the total amount of Work in Process. | Service Labor Cost of Sales divided by Work in Process (Labor only at cost). |
| Zero On Hand Items |
The total number of stocking parts (order formula code not equal 5) with an on hand less than one. Note: This ratio can only be generated once at the end of the month by a Parts Month End. |
Read PARTMAST (parts master) file for parts with on hand < 1 and OFC <> 5 |