MIDLAND, Mich.(Aug. 23, 2002) — The Motor Equipment & Manufacturers Association has begun a study addressing what the group has termed a $6 billion parts surplus 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, 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 primary causes of excess inventory and outline possible steps that aftermarket products manufacturers and distributors can take to improve the sitaution.
"The goal is to consult with all levels in the supply chain (in order) 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 manufactuers and distributors, but rather cutivate an industry consensus and identify what practices in the aftermarket must change."
Northwood plans to release results from the study in November during Automotive Aftermarket Industry Week in Las Vegas.