In Asia-Pacific, many auto-parts distributors are small or medium family-run businesses, often with legacy technology systems to track their inventory. A lot of manual processes are involved in their inventory management workflow, which results in specific but common inefficiencies across the board.
The gambling game
Because of so much opacity in the delicate balance between supply and demand, inventory management in the automotive aftermarket industry can resemble a sophisticated gambling game, with the odds stacked against the distributor in a play of dozens of variables. Distributors gamble on how much they’re going to sell and they plan purchasing based on that gamble.
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