Parts Warehouse Company (PWC) was founded in 1955 and became the dominant auto parts wholesaler by the 1970s but now faces several problems. PWC's inventory turnover is declining as it stocks outdated items and has a liberal returns policy. Profits are also declining due to increased average collection periods hurting cash flow. Additionally, PWC's sales force is undermanaged and undermotivated while prices are strictly set, limiting market expansion against competitors. Filling many small orders at store counters also requires more personnel than larger bulk orders.