Industries · Trade & Manufacturing
Automobile and spare parts
Vehicle and parts businesses carry heavy, high-duty inventory financed by banks, with margins set by principals and policy. Stock ageing, financing cost and duty changes move profit more than any sales campaign.
The questions that decide the numbers
What a automobile and spare parts business needs answered.
- 01What does inventory cost to carry, month by month?
- 02How exposed is the business to a change in duty or import policy?
- 03Are workshop and parts revenues earning their space and staff?
- 04Are bank facilities sized to the stock cycle?
Across trade & manufacturing
Margin here is decided before a single sale is made, in landed cost. Customs duty, freight, LC charges and the exchange rate on the day of payment all sit inside cost of goods, and most businesses price off invoice value instead. Add inventory financed on supplier credit and the result is familiar: profitable on paper, permanently short of cash. The work is usually product-level costing, then pricing and working capital built on top of it.
How we help
Services for automobile and spare parts
Related perspectives
Also in trade & manufacturing