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WIP Aging: The Hidden Cash Flow Killer

Every vehicle sitting in your shop is cash you haven't collected yet.

Parts purchased but not billed. Labor invested but not invoiced. Bay space occupied but not generating revenue.

That's Work in Process—and when it ages, it kills your cash flow.

What Is WIP Aging?

WIP aging tracks how long vehicles have been in your shop:

A shop with 40 cars in WIP could be healthy or in trouble. The age distribution tells you which.

Healthy WIP distribution:

Unhealthy WIP distribution:

Same total. Very different story.

Why Aging Matters

Cash Flow Impact

A vehicle that sits for 30 days is 30 days of parts you've paid for but not billed, labor you've paid for but not collected, and bay space not available for new work.

At $5k average repair value, 10 vehicles aging past 30 days is $50k in trapped cash.

Cycle Time Drag

Every aging vehicle eventually gets delivered—and wrecks your cycle time metrics when it does.

Customer Experience

Customers waiting 30+ days aren't happy customers. They're calling daily, leaving bad reviews, and complaining to insurance carriers.

The Aging Causes

1. Parts Delays

The most common cause. A vehicle waiting 3 weeks for a backordered part ages your WIP whether you like it or not.

2. Supplement Loops

Repairs that go through multiple supplement rounds with adjusters. Each round adds days or weeks.

3. Customer Delays

Customers who don't respond to calls, don't pick up their vehicles, or can't make decisions.

4. Internal Bottlenecks

Capacity constraints that create queues at specific stages—paint, assembly, detail.

5. Forgotten Vehicles

The worst kind—repairs that simply fall through the cracks. Everyone assumes someone else is handling it.

Building the WIP Aging Dashboard

Shop-Level View

Shop Total WIP 0-7 days 8-14 days 15-30 days 30+ days
Downtown 35 22 (63%) 8 (23%) 4 (11%) 1 (3%)
Eastside 42 20 (48%) 12 (29%) 7 (17%) 3 (7%)
Northgate 28 18 (64%) 6 (21%) 3 (11%) 1 (4%)

Alerting on WIP Aging

Don't wait for someone to check the dashboard. Set up alerts:

Delivered Not Closed: The Revenue Leak

Related to WIP aging is Delivered Not Closed (DNC)—vehicles delivered to customers but not invoiced in CCC.

This is pure revenue leakage: car is gone, customer is happy, but the invoice hasn't been sent and payment isn't coming.

Track it daily. Any vehicle delivered more than 3 days ago and still open is a problem.

WIP Aging as a Leading Indicator

Here's the key insight: WIP aging predicts future cycle time.

Today's 20-day vehicle is next month's cycle time problem. By tracking aging, you can see trouble coming before it hits your delivery metrics.

Want WIP aging visibility across all your shops?

We built dashboards that show aging distribution, flag outliers automatically, and alert when something needs attention.

Schedule a Call →