A
good aftermarket inventory is ever-
changing.
But adding new product lines
takes more than just fi nding space on a
warehouse shelf.
To truly succeed with new products, dis-
tributors must evaluate growth opportuni-
ties within a customer base, target areas that
are underserved and select the right products
to fi ll voids.
Increasing sales comes from adding the
right products, not just more products.
"When we look at inventory it's all about
earns and turns," says Brandon Ford, vice
president of sales and marketing at The
Power Train Companies. "Before we add a
new product line, we have to identify if it's
worth keeping it on the shelf."
The fi rst step for distributors consider-
ing new product lines is addressing which
product categories offer the most growth
potential.
This takes detailed research. Every cus-
tomer base is different, and attempting to
roll out a new product without identifying
how it will be received is a costly way to get
burned. Basic trial and error might work in
other industries, but it's not a good business
practice in the aftermarket.
Using analytics to track your sales num-
bers can be an excellent resource in these
cases, says Kent Savage, CEO of APEX Sup-
ply Chain Technologies.
"We think it's critical to be able to track"
what you're selling, he says. "Without the
ability to track, manage and control [what
products are moving], your inventory can be
ineffective."
Most inventory tracking software current-
ly available for distributors is built to identify
the rate in which products are turned, and
estimate the quantity necessary for inventory
replenishment.
By taking that information and studying
it over time, distributors can uncover prod-
uct categories that are growing in profi ts and
turnover rate. Fading parts categories also
17
Cover Story
W W W . T R U C K P A R T S A N D S E R V I C E . C O M A p r i l 2 0 1 4 | T R U C K P A R T S & S E R V I C E
Without the ability
to track, manage
and control [what
products are moving],
your inventory can be
ineffective.
– Kent Savage, CEO of APEX Supply Chain Technologies
ADDING PROFITABLE
NEW PRODUCT LINES
REQUIRES CAREFUL
EVALUATION AND
EXECUTION
