Unit 81 Vehicle Parts Management

Unit 81:

Vehicle Parts Management

Unit code:

QCF level:

Credit value:


This unit provides learners with an understanding of the management of vehicle parts distribution and supply in the retail sector of the motor industry.

Unit abstract

In this unit learners will explore the roles and responsibilities of parts suppliers, parts managers and franchise suppliers. They will also look at the different ways of dealing with customers. Stock management systems are investigated and learners will evaluate the different types of stock control systems. Learners will examine the function and layout of a parts department and will identify potential risks that can be found within the department. Finally, the role of advertising in a vehicle parts operation and the means of promoting a parts supplier are explored, along with the internal factors that can affect parts sales.

Learning outcomes

On successful completion of this unit a learner will:

1     Understand the roles and responsibilities in vehicle parts supply and management

2       Understand stock management systems

3       Understand the functions and processes in a vehicle parts supplier operation

4       Understand the role of advertising and promotion in a vehicle parts operation.

Unit content

1      Understand the roles and responsibilities in vehicle parts supply and management

Parts supplier: manufacturers eg vehicle, component manufacturer; distributor eg dealerships, wholesaler, factor, national retail chains, DIY outlets, high street retailers, cash and carry; specialist supplier

Customer: eg retail, trade, own workshop, vehicle sales, car fleet, van fleet, commercial fleet, body repairer, fast fit, garage, service station, breakdown and recovery specialist, repair specialist, vehicle restoration specialist

Responsibilities: financial eg turnover, profitability, control of stock investment, control of costs; development of customer base and new markets eg customer care, sales promotion, after sales services; management of staff and department eg personnel issues, staffing levels, layout and maintenance of department and facilities

Franchise supplier: relationship with manufacturer; franchise agreements; obligations and responsibilities; benefits and/or disadvantages

2      Understand stock management systems

Efficiency: maintenance of stock eg maximum, minimum, working stock, order level, safety stock, lead time, virtual stock, stock turn, obsolete, redundant, fast moving, slow moving, captive parts, competitive parts, warranty; financial control eg stock turn ratio, cost of holding stock, cost of ordering stock, economic order quantity (EOQ), gross profit, net profit; physical stock control eg stock check and audit, categorising stock, Pareto’s Law, coding stock, statistical sampling

Stock control: card systems; in-house computerised systems; online systems (electronic ordering), computer parts catalogue; just-in-time (JIT)

Computerised systems: maintenance of stock levels; automatic order generation; bar coding stock; stock and sales analysis; changes in demand

Lost sales: parts satisfaction level; increase in demand; mathematical techniques

3      Understand the functions and processes in a vehicle parts supplier operation

Main sections: goods inwards; goods outwards; parts storage; gangways; trade and retail sales counter and/or workshop counter; stock control; parts manager’s office; sales displays; delivery and distribution methods eg road, rail, post

Factors: security of stock; capacity; health and safety; accessibility; speed of picking; limitation of stock damage; presentation; image

Documentation: delivery note; advice note; damage/discrepancy report; estimate; quotation; order; trade note; invoice; statement; credit note; stock order; emergency order; vehicle off road (VOR) order; stock audit report; warranty report

Risk assessment: liquids and chemicals eg solvents, glues, paints, oil, grease, thinners, cleaners, anti-freeze, de-icers, battery acid; machinery eg fork lift, stackers, trolley, crane; storage eg weight, bulk, access, height

4      Understand the role of advertising and promotion in a vehicle parts operation

Advertising media: newspapers; magazines; radio; television; other eg leaflets, mail shots, recommendations; benefits (cost, coverage, targeting, geographical, timing, impact) Promoting: sponsorship; presentations; trade events; shows

In-house factors: staff eg presentation, knowledge, attitude, customer care; layout eg presentation, comfort, services (drinks and papers), size; service eg speed, price, efficiency and effectiveness

Learning outcomes and assessment criteria

Learning outcomes
Assessment criteria for pass

On successful completion of
The learner can:

this unit a learner will:

LO1 Understand the roles and

compare the role of different types of parts suppliers

responsibilities in vehicle

explain the different approaches and methods of

parts supply and

dealing with customers


explain the responsibilities of the parts manager

explain the obligations and responsibilities of the

franchise supplier

LO2 Understand stock

determine the efficiency of stock management

management systems

evaluate stock control systems

explain the benefits of a computerised stock

management system

identify lost sales and new demand

LO3 Understand the functions

explain the function of the main sections of the parts

and processes in a vehicle


parts supplier operation

explain factors affecting the layout of the parts


describe the documentation used by parts suppliers

conduct a risk assessment for the parts department

LO4 Understand the role of

evaluate the benefits of different advertising media

advertising and promotion

evaluate methods of promoting the parts supplier

in a vehicle parts operation

discuss the in-house factors affecting parts sales.


This unit can be linked with other units such as Unit 20: Quality and Business Improvement

Essential requirements

There are no essential requirements for this unit.

Employer engagement and vocational contexts

It would be helpful for delivery if learners visited one or two different types of vehicle parts supplier. Alternatively, suitable guest speakers might be invited to provide an overview of the roles and responsibilities within their organisation.