Automotive Part Logistics: 3 Keys to Strategic Planning
Scott Hothem • July 16, 2014
Do you remember what a lengthy process it used to be to pick up a new movie from the video store? You would plan your evening commute to swing by the local video store on your way home. After rummaging through the hundreds of titles lining the wall, you finally come across the latest installment of Die Hard, or Terminator, or whatever Julia Roberts was doing at the time. You hand over your membership card and are on your way. That’s a lot of legwork for a two hour movie. Those were the days. Today, all you have to do is press the Netflix or Hulu app on your phone, tablet or even television remote to instantly connect to thousands of titles. This saves time on your way home, room in your wallet and space on your shelf.
The way we watch movies and TV isn’t the only thing to drastically change in the past 20 years. There has been a major overhaul in the way automotive parts are ordered, shipped, tracked and used. This evolution was by no means unsolicited. In the same way consumer demand and access forced video stores to go the way of the dinosaurs, customer expectations and market conditions have forced auto part fulfillment processes to become as streamlined as possible. As such, strategic planning in the automotive supply chain is more important than ever.
In spite of volatile revenue results stemming from the economic downturn in 2008, the automotive parts industry is expected to top $170 billion in 2014 according to a report from ibisworld.com. As markets thrive and supply chain functions become more complicated the need for strategic logistical planning needs to be a key priority. The balance between superior service levels and reduced logistics/inventory expenses can be accomplished through three strategy considerations:
- Transition from a “Pull” to a “Push” tactic- Years ago the best practice was for distributors, dealerships to order or “pull” a certain part when inventory became low. This method can be very time and labor intensive because it is reactive in nature and is often a last minute order. Today, to remain efficient and reduce the risk of a poor end-user experience, a “push” strategy is more effective. Instead of low inventory triggering an order, leveraging an Enterprise Resource Plan, an order is sent, or “pushed”, to where it is needed. Allowing technological platforms to maintain inventory and place orders reduces errors and redundant tasks from your labor force and other resources.
- Inventory forecasting- Changing the way that inventory is managed and organized can support these new complex supply chains. Shipping smaller quantities more frequently can increase the efficacy of the entire operation. A high velocity network keeps the supply chain running smoothly. Segregating part types by size, volume and frequency of use is key in optimizing and forecasting inventory. This can be achieved through a customized plan with strategic facility and SKU layouts and management, as detailed here.
- Technology- Many entities are still attempting to get as much as possible from aging and antiquated systems. Not only is this technology becoming increasingly less effective, it is also becoming more expensive to maintain. Your fulfillment technology is the pivotal element of the service parts supply chain. As the demand for replacement parts grows and the number of new model releases increases, legacy systems simply cannot handle the workload.
Integrating new technologies and supply chain functions into more sophisticated strategies is crucial for a supply chain that is fast, lean and cost effective. At Barrett Distribution Centers, the experience, capability and resources to optimize technology, process and warehouse design is at the core of our performance.
Recent Blog Posts
FOR IMMEDIATE RELEASE Franklin, MA — Barrett Distribution Centers , a leading third-party logistics provider recognized for its expertise in eCommerce and omnichannel fulfillment, is proud to announce a new partnership with Maxwood Furniture to support its Western US DTC fulfillment operations. The partnership marks a significant milestone for Maxwood as the company continues to scale its nationwide distribution strategy. Maxwood Furniture is a global manufacturer of precision-engineered wood furniture with more than 20 years in the market. The company offers several distinct brands and product lines that ship from its US-based distribution centers or directly from its 1.3 million-square-foot factory in Vietnam. Maxwood serves retailers, design and procurement firms, hotel groups and turnkey project companies around the world. “We walked away from our visit to Barrett’s Montebello operations genuinely impressed with the visibility their systems provide,” said Heidi Germann , senior manager of operations at Maxwood. “Their integration, reporting and thoughtful approach to network design really stood out. Barrett’s geographic footprint fits where we’re headed and their team’s thoroughness helped us determine the best transition path.” After the initial transition, Barrett will begin planning a Dallas warehouse location to support Maxwood’s continued growth. “We are excited to partner with the Maxwood Furniture brand and team,” said Mark Healy , vice president of customer solutions at Barrett. “Our companies are aligned culturally and operationally, which creates a powerful combination to support Maxwood’s market-leading growth initiatives.” The launch is scheduled for mid December with outbound DTC order processing beginning shortly after. About Maxwood Furniture: Maxwood Furniture is a family-owned and operated import and wholesale business that designs, manufactures, and distributes solid wood furniture products across North America and around the globe. Our products are meticulously engineered in our fully accredited factory to meet or exceed US & EU safety standards. We manufacture using the latest equipment & best materials, including industrial-grade hardware, to create products that are made to last. Our customers range from designers to small independent & large retailers such as Rooms to Go, Jordan’s Furniture, and Bernie & Phyl’s. About Barrett Distribution Centers Since 1941, Barrett has provided customized third-party logistics (3PL), direct-to-consumer (DTC) eCommerce fulfillment, omnichannel distribution, managed transportation solutions and retail compliance for clients across all industries, with a focus on apparel & footwear, health & beauty, consumer packaged goods (CPG) and education. Barrett continues to be a leading 3rd party logistics provider in North America, known for superior execution, customer engagement and direct access to senior leadership decision makers. As a member of Inc's fastest growing companies list 15+ times, Barrett is big enough to do the job and still small enough to deeply care about your business. Brands interested in a new 3PL partnership may contact Barrett directly here . Official Release Here
As a marketer, I can’t help but think about how much “fluff” is in advertising and how people are bombarded daily with thousands of generic messages. And as I begin my holiday shopping, it honestly hurts my soul knowing that dad is getting another set of generic socks, sister is getting another plain ceramic coffee mug, and mom is getting another non-stick pan that will end up with the hundreds she already has. Then I started noticing people line up for HOURS to get their bags monogrammed, their journals engraved, and their gifts wrapped with custom notes — and it hit me. Personalization is all about a feeling. The feeling that you thought deeply about someone when choosing a gift, and that it wasn’t just another HomeGoods candle regift (we’ve all been there — no judgment, but I am squinting). And yes, these are the things that keep me up at night. But on a larger scale, I’m always thinking about what brands could be doing better. And the data is in: personalization is one of the most effective ways to stand out. According to Salesforce, 78% of consumers are more likely to repurchase from brands that personalize their offerings , and Adobe reports that 52% of consumers now expect personalized offers from retail brands . What used to be a “nice touch” is now the expectation. Below are the personalization trends we see leading the charge this holiday season — many of which you’ll spot in our recent personalization workflow video. 1. Monogramming is having a moment Embroidery remains one of the most requested personalization services. It creates an emotional connection that gift shoppers love, and when it’s built directly into fulfillment operations, it avoids the bottlenecks brands often face. 2. UV printing is becoming a go-to for fast customization UV printing delivers a premium look quickly and works across a wide range of materials. It provides brands with the flexibility to offer personalization without compromising shipping promises. 3. Laser engraving continues to stand out for gifting Engraving adds depth, permanence, and a premium feel that elevates even simple products. With 86% of shoppers stating that personalization influences their purchasing decisions , engraving has become a strategic differentiator for gifting moments. 4. Debossing is rising in popularity for premium and corporate gifting The subtle, elevated finish resonates with shoppers seeking something that feels intentional and gives professional vibes. It also photographs beautifully, which matters when unboxing content drives discovery. 5. Handwritten notes still matter There’s nothing more human than a handwritten message. A simple note can turn a routine order into a moment worth sharing, and shoppers notice the effort. 6. Gift wrapping expectations are higher than ever Gift wrapping used to be a “nice-to-have." Shoppers want gifts to arrive ready to give, and they expect the wrap to match the quality of the item. When a 3PL integrates wrapping into its workflow, brands get consistency without sacrificing speed. 7. Kitting and curated sets are on the rise Gift sets and bundles remain one of the strongest trends of the season. Customers love the convenience and the elevated presentation, but behind the scenes, kitting requires organization and accuracy — especially during peak. That’s where strong fulfillment workflows matter. 8. Custom packaging shapes the unboxing experience Personalized tissue, belly bands, stickers, sleeves, and inserts transform a simple shipment into a brand moment. Deloitte found that 54% of consumers expect a personalized unboxing experience , and 70% say that custom packaging enhances their perception of a brand . Packaging is all about storytelling. Why personalization matters more this season Across retail, personalization drives: Higher repeat purchases Increased AOV Stronger first impressions Better loyalty More organic social content With 40% of consumers spending more than planned when they receive personalized experiences , the value is undeniable. The brands that stand out are the ones that can deliver personalization consistently, accurately, and quickly — especially when volume spikes. How Barrett brings personalized fulfillment to life Within Barrett facilities, personalization is an integral part of the operational workflow for many of our partners. Our teams support brands with: Monogramming and embroidery UV printing Laser engraving Debossing Gift wrapping Handwritten notes Custom packaging setups Kitting and bundling Real-time visibility and reporting Brands get the elevated customer experience they want without compromising speed or accuracy. Big plans for custom services next year? If your brand wants to introduce new custom services or scale the ones you already have, an experienced 3PL partner is non-negotiable. Contact us for a free personalization supply chain consultation today.
Inbound Logistics Selects Barrett Distribution Centers as 2025 Top 100 3PL
