Today’s conditions require the auto parts supplier to quickly respond to customer requests. Therefore, it is important that processes in the supply chain run smoothly, especially across international borders: to ensure that the right part for a car gets to the right place at the right time.
Why importing spare parts without a supplier is almost impossible
The auto parts business is specific: the trends that have developed in other areas may not always take root here. For example, dropshipping is now popular in commerce – trade without purchases: a retailer acts as an intermediary, redirecting an order from a buyer to a manufacturer or a large supplier.
For the automotive market, such a business scheme is not relevant, because manufacturers work directly with the seller according to strict rules: large wholesale, full prepayment. And this requires serious financial resources and huge storage facilities. Therefore, the most reliable option is to establish relationships with a partner who knows well what it is to import new parts. Let us explain why it is impossible to do without an experienced supplier.
- First of all, he understands the specifics and navigates the extended supply chains of auto parts, when the goods can repeatedly cross borders;
- Secondly, he knows international legislation and “profile” laws of different countries. This will help to avoid possible fines “due to ignorance” and organize the supply process more efficiently;
- Third, guide you through the procurement process at an early stage. An experienced auto parts supplier knows in what terms you can get different parts for a car. This will help to correctly calculate the response time for the end user: for example, from 12 hours to a day or longer.
Supplier Selection Guide
When you have dealt with the general requirements for an auto parts import partner, you should study each of the candidates in detail. We suggest paying attention to the following criteria:
- Experience in the field, a large number of completed contracts. The company has been in business for a long time, has thoroughly developed supply chains, owns numerous nuances, follows changes in the industry, and has a good reputation.
- Availability of up-to-date catalogs from manufacturers. A large list of categories and brands offered, renewal, response to market demands – you can work with such a supplier with peace of mind.
- Detailed product information. A serious company will provide precise information on each item of imported goods: compliance of the name with international standards, code, manufacturer, original car part or analogue.
- Matching options. The ability to respond to partner requests is an advantage for a large wholesaler. Its activities will be of interest to both mono-brand and multi-brand car parts retailers.
- Automatic upload to your website. If you manually try to enter thousands of parts items on your website, there will be no time to trade. The name of the components should be (and automatically updated) on the partner’s website.
- Own developments. The wider the arsenal of a supplier’s working tools, the more likely you are to make the right choice.
How to fight counterfeiting
Research from the Organization for Economic Co-operation and Development (OECD) helps answer the question “why you need a verified supplier”: the average share of counterfeit auto parts is estimated at 2.5% and is at least $20 billion a year. Dubious goods can be purchased both from a regional supplier and abroad: “shady schemes” in business will exist as long as the fight against them lasts.
A counterfeit car product increases the risk of acquiring a fake, and the proposed purchase price may not always be a litmus test in this matter. On the one hand, an honest player, through hard work in the market, can offer an acceptable discount for a reliable product. On the other hand, a product of dubious quality may reach the final seller through several intermediaries, which will affect the trade margin. And sometimes sellers of illegal or counterfeit auto parts do not want to attract attention with a low price, even if they got auto parts for next to nothing.
Therefore, when non-original spare parts for cars are offered, it is worthwhile to figure out whether we are talking about high-quality analogues (OEM products or third-party brand car parts identical to the originals) or counterfeit. Guide to action – carefully study the previous paragraphs and see who was trusted to import your goods into the country. Reliable supplier = quality auto parts = reliable business.