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At Subaru of New England, collaborative inventory management partnerships yield
impressive inventory efficiency gains and suggest a new industry standard for automotive
manufacturers.
Retail inventory management is what many automotive manufacturers
call their attempt at vendor-managed inventory.
As with all inventory-dependent industries, wrestling with inventories
and balances is a huge battle with every original equipment
manufacturer building and supporting multiple vehicle models, each
with thousands of individual parts. Many automotive manufacturers
have tried to control their dealers’ replacement parts stock. While
some have had limited success, we think Subaru of New England has
built the better mousetrap. This cutting-edge business model for
controlling dealer parts inventories has reinvented the way new-car
dealers look at inventory and their supply chain.
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