PARTS WAREHOUSE COMPANY

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GROUP # 03

. made PWC the dominant auto parts wholesaler in the area by the early 1970s. • Mr Korn’s personal Dedication to customer service. • Company’s reputation was well established at this time & after death of Mr Korn Mrs Korn had become the chief decision maker..Company History • Parts Warehouse Company supplied retail auto parts outlets and repair shops.

Industry Structure & Trends • The auto parts industry was dominated by several large manufacturers who sold their products to parts wholesalers. • Inflation indicates a continued growth of the auto parts market. • Inflation and recession prompted consumers to put off purchases of new automobiles in favor of fixing their older cars. .

Inventory turnover rate had declined.The Warehouse Operation The company Maintained parts that was large by industry standard. PWC priced it’s product according to the price sheets supplied by manufacturer. PWC maintained a liberal return policy. .

Which problems were most pressing for PWC? Inventory turnover. Small orders  Distribution cost. .

What action should PWC have taken? PWC must restrict its liberal return policy so that it goes at par with the parts manufacturers. Proper credit policy. Sales person should concentrate on sales & promotion equally. . Balance between front office and back office order.

To promote products and establish new accounts in the sales area.What was the sales executive’s job in this case? The sales executives had to call each of the existing accounts regularly and sell sufficient merchandise. To maintain the inventory of the accounts at a certain level. .

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