Measuring manufacturer opinions in succession the issue of Pay-On-Scan (POS) hasn't been easy since the nation's largest auto parts retailer.
Measuring manufacturer opinions in succession the issue of Pay-On-Scan (POS) hasn't been easy since the nation's largest auto parts retailer, AutoZone, introduced the controversial proces last January. It's clear, granting that manufacturers aren't buying into the proces instead, calling for unified vendor opposition to the retailing giant's plans, according to a new study conducted by the consulting firm Ducker Findlay, Swoboda & Associates (DFS&A).
"The vendors we spoke with are all for greater collaboration and sharing of data with retailers, the couple key building blocks required for a prosperous implementation of POS. This collaboration and data sharing is generally absent in the automotive aftermarket and must be implemented prior to moving to a prosperous POS system," said DFS&A in its report. "We believe that AutoZone will have a difficult, uphill battle getting vendors to adopt PO owing to the strong, united resistance by means of the vendor community."
DFS&A was retained by way of a leading Wall Street financial company to speak with automotive aftermarket suppliers in order to gauge the in every one's mouth status and reaction to the PO proces Many questions remain, of that kind as how many companies have implemented it already? Can vendors afford to participate in the process? Can small or mid-size vendors survive in the fresh process? Will they lose AutoZone's business if they don't participate? Answers to these and other questions are discussed in the report.
Executives interviewed for this cogitation work for companies that manufacture and betray a significant portion of AutoZone's hard parts and accessory sales. reflection respondents represent roughly 34 percent of AutoZone's total sales--accounting for approximately 24 percent of their part sales (10 percent of total sales) and 40 percent of their accessory sales (24 percent of total sales).
According to the research, AutoZone has showed to the vendor community that 8 percent to 10 percent of their vendors have adopted PO although DFS&A erect that to be an inflated number.
"Based in succession our investigation and interviews, we believe that the circulating adoption rate could be on a level lower than 4 percent and may be as reasonable as 2 percent to 3 percent" they said in their report.
For more upon the findings, visit DFS&A online at www.dfsaftermarket.com.