1. Parts Warehouse Company
(case 1-14)
By
Ksom,KIIT -10-12

2. Company History
• Founded by Roger Korn in 1955.
• Supplied auto parts outlets and repair shops
from numerous national manufacturers.
• Dominant auto parts wholesaler by early
1970s.
• The market for auto parts had impressive
growth due to inflation and recession, as
many customers fixed their old cars.

3. PWC Problems
• Decline in inventory turnover rate
Stocking items that had been purchased in the past
year, not keeping updated on new requests/demands
in market and liberal returns policy.
• Profits declining
Average collection period increased resulting in cash
flow problems, not able to take advantage of
manufacturer’s discount for early payment.

4. • Management of sales force and compensation
plan
Sales personnel were underforced and not motivated,
not promoting products to current and potential
customers.
• Inability to expand market
Priced strictly according to manufacturer’s price
sheet, two other discount auto parts wholesalers in

5. the market, widely dispersed outlying region
accounts.
• Front counter concept
large number of small orders required more personnel
to fill them than when fewer numbers of large orders.