Auto Recycling World DEC 2023 / Read original article
Auto Recycling World had the privilege of engaging in an insightful conversation with Jarret Hann, the Executive Director at Team PRP, based in the US. This discussion shed light on the pivotal role of trading groups in the automotive recycling industry and their profound impact on enhancing efficiency, meeting customer demands, and fostering growth within this evolving sector.
Understanding Trading Groups in Automotive Recycling
Trading groups do many things, but the primary value is improving the chances of fulfilling every customer order that comes in. That is the ability to “say yes” to every order, regardless of whether the part is in inventory.
Depending on the size of a recycler’s in-stock inventory, there’s only a chance they will have the part in stock and is available. In our experience, even a large inventory facility can expect to fulfill about 15% of incoming orders (with their in-stock inventory).
As a part of Team PRP’s trading group, recyclers have visibility to the entire group’s inventory via software and a network of trucks and warehouses. Recyclers can fulfill orders without the end customer realizing that the part is sourced from outside their existing in-stock inventory. The benefit is two-fold, (1) in that both buying and selling recyclers grow their business and their bottom line, and (2) sellers can better serve new and existing customers.
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