Dealer Buyback Programs Increase Dealer Adoption and Usage of RIM Systems

To develop a seamless inventory management system, manufacturers and dealers in a multi-echelon environment must find an enterprise-wide solution for issues with data qual­ity, visibility and forecasting for aftermarket spare parts management.


To further extend inventory utilization and availability into the dealer network, a Dealer In­ventory Management (RIM) solution provides specific functionality for managing spare parts inventory at the dealer level.

RIM orchestrates monitoring, traceability and optimization of aftermarket business processes. It incorporates transactional processing capabilities, data capture management and real-time alerts across inventory management applications. The system’s powerful integration engine connects a multi-echelon inventory network on a single planning platform.

Syncron’s Dealer Inventory Management (RIM) provides many benefits for the dealer network that make the solution attractive to dealers:

  • Integration with multiple Dealer Management Systems (DMS)
  • Packaged, flexible software built for the dealer network
  • An easy-to-use interface that dealers can learn quickly and use daily
  • Automated forecasting at the dealer level
  • Redistribution of stock between branches, and reduction of excess stock and obsoles­cence costs
  • Fast, effective implementation and roll-out
  • Increased service levels, improved availability and higher sales
  • Decreased VOR/air freight orders
  • Dealer training

A benefit of the program that is key in influencing dealer adoption is the buyback program. When implementing Dealer Inventory Management (RIM) solution, it is critical to establish buyback terms and conditions for dealers. With a buyback arrange­ment, the manufacturer takes back inventory supplied to dealers that is unsold.

While it’s important for manufacturers to take back any stock that was recommended by the RIM system and unsold by dealers, it’s unrealistic to take back all inventory supplied to dealers. Manufacturers must be diligent in setting parameters that dealers need to operate within to qualify for the buyback arrangement. Manufacturers should establish parameters – allowed variances from the system’s recommendations. Dealers should be educated that not straying within established parameters will impact the buyback agreement.

Since the dealer retains full control of inventory and can override the system at any time, it may be assumed that dealers will choose to not follow parameters. However, most dealer users find that the system’s recommendations align with their expectations by providing a more accurate overall forecast. They don’t need to stray greatly outside the recommendations. With RIM, they can change their processes to focus on inventory with significant demand changes rather than ordering line-by-line. This greatly saves administrative time, allowing dealership employees to focus on more value-added activities.

An established and transparent buyback program helps manufacturers achieve high dealer adoption. It is a way for manufacturers to show appreciation to their dealers for making the investments involved in implementing a RIM system. Although there are many other benefits that dealers will see very quickly after implementation, a buyback program is an immediate, tangible enhancement that lowers financial risk for dealerships.

Adoption and consistent usage of the RIM program is increased when there is a well-functioning and trustworthy buyback program. Reassure your dealers that you won’t overload them with inventory by leveraging Syncron RIM’s buyback functionality.

For more information on Dealer Inventory Management, contact us at 855-298-7245.