Challenges to accommodate higher amount of inventory. 6.

Challenges and future opportunities-

Growing
amount of items in inventory will excite you as an automotive businessman but
it also comes with numerous complications. You will have more products to serve
your customer but keeping track of all the elements is a daunting task for
automotive part industry.

Challenges:

1.    Keeping parts stocked for old vehicles: The present challenges of auto parts companies is
handling inventory of old vehicle parts. There is great demand of parts of old
modeled vehicle that asks for more space for housing the more amount of
inventory.

 

2.   
Providing parts of foreign vehicle: Another big challenge for auto part
companies is increasing import from another countries. That means costumer with
demand of foreign automotive part will be coming to your store.

 

3.   
Being prepared for telematics adaptation: According to the tele forum of auto
care association, by 2020 almost all new vehicle should have installed
telematics. With this adaptation of high technology telematics, companies will
have to store new technology parts.

 

4.   
Tacking of parts:  Tracking part is very complicated, parts come
from different channels before reaching to end-user.

 

5.   
Threat from cheap import:  The major issue that auto part maker is facing
is increasing import of cheap auto components from other ASEAN countries.

 

 

 

 

Future Opportunities:

1.    Huge opportunity in tier 1 and tier
0.5 cities.

2.    Frequent launch of new technology
parts by automotive makers.

3.    Growing domestic automotive industry.

4.    Keeping pace with international quality standard by improving
operational efficiency

5.    Japanese and British manufacturer are
seeking for joint venture in India.

6.    ASE certification for mechanics to
make them ready for that job.

7.    Adaptation of growing IT technology
to improve their operation efficiency.

 

 

 

 

 

 

Recommendation:

1.    Part distributor should ensure that
parts are kept track of, which will help to improve customer service and
safeguard of product as well.

2.    Parts must be in adequate amount of
inventory else item will go out-of-stock and your business go at risk. The
right inventory management will help you to meet the demand of the customer and
keeping a step ahead to your competitors.

3.    Installation of Inventory management
software will help you to know detailed information about the part. Software
will give the real time access to part’s information.

4.    There should not be any limit to the
amount of items you can store that will stop your growing business.

5.    Ensure inventory solution is in place
that will help you to accommodate higher amount of inventory.

6.    There is a need of skill of
negotiation in server who are going to attend customers.

 

 

 

 

 

 

 

 

 

 

 

 

References:

1.    http://reliant-inv.com/auto-parts-inventory-companies

2.   
http://www.motorindiaonline.in

3.   

3 Challenges to Owning Your Own Automotive Business