Your global inventory plan is fully optimized for current market conditions. Your brake rotors arrive perfectly synchronized with the vehicle parc in your area. Suspension parts fit any import or domestic plate that comes your way, just in time.
You run a well-oiled automotive aftermarket distribution machine, seemingly impervious to any curve ball thrown its way.
Until it isn’t impervious.
For years, exports have flowed from Asia and other low-cost countries to North America. In today’s global marketplace, the winds change quickly and unless your operation can quickly pivot to source parts from the next up-and-coming economy, your inventory plan won’t keep up.
In China, as salaries and transportation costs have risen, the cost of manufacturing has become more expensive. The result has been near-shoring of manufacturing or the movement of the production of products closer to the end-user. Some economies of South America are becoming export powerhouses, bringing with it customs and practices that may truly be foreign to some. Rather than an aspirational goal, it’s imperative your supply chain remains flexible to adjust to various market conditions around the world.
What sets companies apart today is supply chain expertise and efficiency as much as having a unique product. Besides changing locations of manufacturing and fluctuating global energy prices, customer expectations are putting the supply chain on notice.
Just as consumers buy items from multiple sources, so, too, does the automotive aftermarket. Many industries are being transformed by the “Amazon Effect,” whereby orders come in more frequently but order sizes are smaller, and the automotive aftermarket is no exception. What does the professional technician need? (The precise part or equivalent.) When does the professional need it? (Now.) And perhaps multiple orders will be placed for a single repair job.
An expert third party provider can help automotive aftermarket parts distributors keep parts flowing, no matter where in the world they originate. Visibility at both ends of the supply chain is essential for uninterrupted supply, and achieving this is something to be left to a trusted and well-versed provider.
When the supply chain moves from a known entity to a new, or emerging economy, the learning curve can be steep. That’s where an expert partner can help iron out customs and other foreign and domestic regulatory issues and facilitate these global shipments.
From figuring it out to getting it done. UPS is here to help. See how at ups.com/aftermarket.
