There are various different types of auto parts distributors. Jobbers are installers that purchase goods from manufacturers at wholesale prices and resell them to end consumers. This process is known as two-step distribution. Retailers are national chains of auto repair and parts stores. The process of sourcing and buying auto parts involves several steps. Typically, distributors select their suppliers based on price, availability, and reliability. They also select brands that are known for their premium quality and extensive coverage.
Warehouse distributors stock hundreds of thousands of parts and accessories. Their warehouses service a wide range of auto models, from high-end sedans to compact cars. Most auto parts distributors are small businesses with one location and employ 20 to twenty-one workers. Moreover, they generate revenues of $23 to $24 million. In total, there are about 8,100 companies in the auto parts distribution industry, and over $192 billion is generated each year. Of these, only the top 50 companies account for 61% of all sales.
North American wholesalers have been aggressively seeking growth opportunities in Europe, and the distribution landscape is likely to consolidate in the future. Chicago-based LKQ, for example, recently invested in a parts distributor in the UK. Other PE players have entered the auto parts distribution industry with the acquisition of parts distributor Trost in Germany. These changes, along with the emergence of new competitors, mean that distributors should remain vigilant.
As the automotive industry matures, consolidation will become more common. As companies reach critical mass, they will be able to leverage economies of scale. Parts distributors will also look to collaborate and become more professional in their distribution methods to improve their individual market presence. Additionally, there will be more opportunities for middlemen to grow as the demand for auto parts grows. In the long run, this means that they will need to adapt to the new landscape.
Manufacturer Motor Parts Co. is a trusted name in the automotive aftermarket. Its name and quality have made it a household name, as has its steadfast commitment to transparency, open customer service, and competitive pricing. Whether it’s auto parts, truck parts, or truck accessories, this company has everything to meet your needs. You can even order through their online platform. There’s no better way to buy auto parts than through a reputable wholesale parts distributor.
AAG is a global group of automotive parts distributors with over 780 outlets in over 30 countries. Its diverse infrastructure helps independent auto repair shops obtain high-quality auto parts faster. AAG also provides the IAM with fast and reliable logistics. Moreover, their extensive network enables them to provide their customers with the best service possible. The company’s infrastructure is designed to ensure that the products they sell meet the needs of independent repair shops and manufacturers.
Despite the complexity of the supply chain, reverse logistics plays a critical role. While a company can minimize costs in the supply chain by eliminating returns, mistakes do happen. Getting returned products to a fulfillment center is an arduous process. They have to be authorized, paid for, and returned. They must then be inspected and repackaged. After the process, the products have to be properly disposed of. Reverse logistics helps mitigate the cost and time involved in a return
