Re: General Trend for Parts Vendors (NOT MMY specific).

Posted by jfrom@kanter On 2015/3/9 10:19:46

This has become common practice in many different industries. Is has grown because of competition and customers expectations. Many companies wanted to expand their inventory without physically carrying it and one ways of doing that is by drop shipping an item directly from the manufacturer. This in turn will get a product to the customer faster, especially if the vendor is on the west coast and the manufacturer is in the Midwest and the customer is on the east coast. So in the end it works out for all parties involved meaning the customer gets his or hers product sooner. Forecasting stock is one the hardest things for any to do company. I would say that it is about 85% science/statics and the rest is a crap shoot. So sometimes the only thing a vendor can do is drop ship an item that is not particularly a fast mover to the customer. Shelf space is an expensive real estate for any company and in turn they will use it for fast moving products. But in the antique automotive hobby you are dealing many parts that have not been produce in a number of years. So in that aspect you may see less drop shipping, but more extensive inventories as some of the parts that these vendors carry have sat on their shelf for 40 plus years until their popularity comes about. Unless it's a very popular type of vehicle were the demand has been so high that the need for reproduction parts has reach a peak then a vendor may takes it upon themselves to reproduce certain parts.

Thanks
James From
Kanter Auto Products