🇦🇺Australia

Excess Inventory Carrying Costs

1 verified sources

Definition

Excess inventory in tyre/automotive retail leads to tied capital, storage expenses, and obsolescence; understocking causes lost sales.

Key Findings

  • Financial Impact: AUD 500-2,000 per vehicle per month in carrying costs
  • Frequency: Ongoing for unbalanced inventory
  • Root Cause: Lack of sales data analysis for just-in-time inventory

Why This Matters

The Pitch: Automotive dealers in Australia 🇦🇺 incur AUD 500-2,000 monthly carrying costs per overstocked vehicle. Real-time inventory optimization prevents capital waste.

Affected Stakeholders

Operations Managers, Procurement

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Inventory Holding Cost Overrun

AUD 1,000+ holding costs per vehicle per month (storage, interest, depreciation)

Lost Gross Profit from Slow Stock Turnover

10-20% reduction in gross profit per vehicle (industry standard for aged stock)

Pricing Decision Bottlenecks

20-40 hours/month manual analysis (at AUD 50/hour = AUD 1,000-2,000)

Kosten durch mangelhafte Gebrauchtwagenzertifizierung

Logic estimate: AUD 800–2,000 per affected CPO vehicle in avoidable warranty repairs/refunds; for 3–5% of 300 CPO units per year ≈ AUD 7,200–30,000/year per dealer.

Nicht abgerechnete Zusatzleistungen bei Gebrauchtwagenprüfungen

Logic estimate: AUD 100–150 unbilled inspection value per CPO vehicle; for 300 vehicles/year ≈ AUD 30,000–45,000/year per dealer.

Produktivitätsverlust durch manuelle Fahrzeuginspektionen

Logic estimate: 0.45–0.75 hours excess technician time per vehicle × 300 CPO vehicles/year × AUD 120/hour ≈ AUD 16,200–27,000/year lost capacity per dealer.

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