The Motor Equipment & Manufacturers Association has initiated a study to address the problem of excess capacity-about $6 billion worth-in the automotive aftermarket supply chain.
The Richard DeVos Graduate School of Management at Northwood University is conducting the study, which also is strongly supported by the Automotive Warehouse Distributors Association, the Automotive Aftermarket Industry Association and the Specialty Equipment Market Association.
Poor inventory management in the aftermarket is nothing new, said Tim Nash, dean of the school of management. ``The problem has been around for many, many years, and the industry has yet to identify fundamental solutions to improve the situation.''
Through interviews with industry participants, the study will attempt to identify the key drivers of excess inventory and to outline some possible steps aftermarket products manufacturers and distributors can take.
``The goal is to consult with all levels in the supply chain to develop an industry consensus,'' said Bill Busby, who is leading the interviewing process at Northwood.
``We're not trying to develop individualized solutions for manufacturers and distributors, but rather cultivate an industry consensus and identify what practices in the aftermarket must change,'' he explained.
Northwood plans to release results from the study in November during the Automotive Aftermarket Industry Week trade shows in Las Vegas.