RESEARCH TRIANGLE PARK, N.C. – As part of its mission to serve as the “voice for aftermarket suppliers,” AASA recently embarked on a study of extended terms and factoring/financing with the goal of promoting a dialogue across the industry on this topic.
 
This week, AASA announced that the study has now been completed and results will be discussed with the top executives of AASA supplier members at an Aug. 14 meeting in Detroit.
 
“This spring, AASA commissioned KPMG, one of the ‘Big Four’ global accounting and consulting firms, to conduct an in-depth study of the impact of extended terms on the industry overall,” said Steve Handschuh, president and chief operating officer for AASA. “AASA’s initial step was to help provide a better understanding of this practice and the potential risks for the aftermarket supplier community and the overall supply chain,” said Handschuh.
 
“While all suppliers and their customers must negotiate their own agreements in their own best interests, in the end, the aftermarket value chain – retailers, distributors, suppliers and financial institutions – need to pursue business practices that promote long-term sustainability and resiliency of the industry,” said Handschuh.
 
AASA looks to help facilitate industry dialogue on this important area. Representatives from KPMG will be on-hand at the Aug. 14 meeting to discuss the report findings and insights that will allow aftermarket suppliers to:
 
·      Better understand the value proposition to suppliers, customers and banks
·      Benchmark aftermarket parts terms and factoring/financing usage versus other industries
·      Understand and model the real costs, risks and benefits to the industry
·      Assess potential risks/opportunities in realistic future scenarios
·      Identify alternative options / approaches that meet the needs of all value chain constituencies.