Last year, many people made a statement about parts supply in many different ways. This time dr. We contacted László Halla, the director of the Automotive Technology Company, and asked him to tell us, from their own point of view, what is the situation with regard to the supply of spare parts and how they are trying to change the shortcomings.
– Do we usually have a shortage of parts today? If so, why, if not, what is the cause of poor care?
– There is usually no shortage of parts, only the part is specifically and sometimes a shortage. I would put poor care in quotation marks, because there is no question of a multitude of cars being in short supply due to a lack of parts or being unfit for their intended use. Another issue is that deliveries to the country are unscheduled, so intermittent tensions do occur. Therefore, in general, we cannot talk about “poor care”.
– Why aren’t there parts where they should be? For example, in workshops.
– Continuing the previous line of thinking, it is more that the number of repairers and car parts dealers has increased dramatically, so today the part goes to more than twice as many places as a year ago. In 1983, the number of customers of our company was 460, in 1984 it exceeded 1150. Thus, the volume of parts, which, albeit slightly, increased, unfortunately, did not always and everywhere to the extent required by the growing demands. Nearly many parts are expected by several plants, traders and commercial units, so this does not improve the supply. Resellers are also becoming impatient. Our company has also made efforts in the field of domestic production and renovation of missing parts, the results of which are already showing.
– To what extent are plants the cause of component shortages?
“The factories – I’m thinking of the repair industry here (too) – are struggling with a shortage of money. Because of this, repairers order little at a time because they don’t have the financial coverage for storage. Neither our distribution system nor our financial situation can follow this, so it may be the case that there is no stock of a part in the plant exactly when the car arriving for repair needs it. For this reason, some of the repairers followed the practice of bringing and procuring the parts needed for installation with the customer. This has become ‘more convenient’, simpler in terms of funding and, unfortunately, has become an unacceptable way of transferring responsibility. The other side of the coin is that, taking advantage of their current opportunity, some repairers sell or resell a smaller or larger proportion of the parts, in many cases the current parts, in their own stores to other resellers. These parts may be missing in their own repair shops. Chain trade is widespread.
– What are the dangers of chain trade?
– In recent months, we have just heard enough about the dangers of this, its role as a price driver, and we have also read about it in other areas of the service. A similar situation has developed with regard to car parts. The “victims” of the chain trade in this case are clearly motorists, because supply slows down, the part is “on the road”, it “sits down” in intermediate storage places.
– How does Autotechnology want to change the distribution?
– The so-called shortage of car parts, as I mentioned, is largely apparent. But due to the lack of several specific parts, it is a real problem after all, and this has been a topic in Hungary for years. The Automotive Technology Company was established on January 1 last year to supply parts for Soviet and GDR-type cars – nearly one million. Of course, we could not change the many disadvantages and the established national practice in one year. But we know very well that there is room for improvement in both needs assessment and distribution. As a first step, last year we established a network of district warehouses for repair companies through cooperative cooperation. We have such warehouses in Győr, Pécs, Szeged, Hajdúszoboszló, Eger, Várpalota and two in Budapest. With their help, we also bring the goods closer to the customers. Today, the district warehouses and, until the end of 1985, the Autóker Ecseri út warehouse, where some of the Lada parts are distributed in our name and on our behalf – not, of course, free of charge – handle 40% of the turnover. Since the establishment of our company, and in part even today, our warehouse capacity is insufficient. Our revolving base is also modest. The warehouse situation was improved on October 1 last year with a Mahart lease of 2,300 square meters of cargo space taken over from the Car Garden. After a quick loading of goods, we have already started selling body parts and main parts of Lada models. The final solution of our warehouse situation, the establishment of a unified product distribution order is expected after the takeover of the Dunaharaszti Autóker warehouse after 30 June this year.
In addition to the improving warehouse situation and the reorganization of the internal material handling and storage system, we will also modernize the computer background of the service distribution from January this year. It is a much more transparent, unified, higher-capacity computing system that allows for better tracking of needs. Demand changes can be tracked for each machine division. In order to better supply the repair industry, according to the guidelines of the National Office for Materials and Prices, certain components that require a high technical and technological level of readiness for installation will be received primarily by the repair industry during installation. Repairs in the repair industry are booked by the machine, and where there is a shortage of goods, we will notify our customers immediately upon receipt of the parts. Following the introduction of the new computer system, we plan to take over the components located in the case of passenger car parts within the scope of our company’s distribution from the repairers cooperating with us in a commission construction and utilize them in the redistribution through our database. We will create a better distribution and improve care by reforming our internal and external information system, modernizing our organization, and coordinating personal, administrative and many other conditions.
– What is the attitude of foreign partners to our parts problems? Do we get as much as we order?
– On the part of our foreign partners, the total volume, albeit a small one, but the increase in delivery, at the same time the component composition is not the most favorable, there are still shortages. About 90% of all orders are confirmed on average, but the remaining 10% also represents parts worth well over HUF 100 million. Which, if not, already causes supply voltage.
-Is change expected from foreign partners?
“The parts supply problems, as I mentioned, are twofold. One is a matter of rhythm, the other is composition. We strive to do our best to better serve our customers. We participate in forums and negotiations where parts supply issues are on the agenda, and we even initiate more. We encourage the deepening of personal relations with the manufacturing plants, we use the help of our foreign trade partners to take action on issues that are beyond our competence today. I feel that our efforts are paying off, and I can already say that we are doing much better with contracts for this year than we were with preparing for the 1984 parts deliveries. However, it is expected that there will still be shortages.
– Why aren’t vital parts just for repair companies?
– All parts installed in the car are vital, as the car may be inoperable due to the absence of a bearing, screw or seal. Here we can rather talk about the distribution of components that require the high technical readiness and technology already mentioned. We have already made preparations, following the action of the National Office for Materials and Prices, to get these parts to the repair industry from 1985 onwards. The other side of the coin, on the other hand, is that these parts are not sold by the repair industry in its own shops, but are sold to a repair shop or to us in the event of an overstock. By redistributing in this way, we can direct these parts to where they are in short supply.
Source: Autó-Motor by www.automotor.hu.
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