Listed as one of the 5,000 fastest growing private companies, Scott Drozd cofounded FCP Euro with Nick Bauer, an internet retailer specializing in European genuine and original equipment parts.
What frustrations and pain points voiced by Do-It-Yourselfers (DIYers) need to be addressed so that they can complete a proper vehicle repair?
DIY customers don’t typically have access to parts lookups, diagrams and recommendations for all the parts needed to complete a job. To serve a DIYer successfully, you need to provide them the tools and solutions to take the guesswork out of the repair. We do this through virtual “kits” that include all the necessary parts for a job, instructional videos, and interactive 3D diagrams to help them identify specific parts they need.
How is FCP Euro unique in their inventory management and product delivery requirements?
We have over 200,000 parts in our catalog but only about 20,000 in stock. We use a three-pronged fulfillment model that includes just-in-time, dropship and stock and ship. A fulfillment algorithm runs on every order that passes through our system. The algorithm makes a recommendation on how to best fulfill the order to maximize profit and efficiency while minimizing transit time to the customer. We also have very strict stocking criteria of 2 sales per month over 12 consecutive months.
FCP switched from a traditional distribution method to just-in-time (JIT). Describe what happened.
We wanted the ability to expand our catalog from a few thousand SKUs to hundreds of thousands of SKUs without sacrificing the speed of fulfilling orders. JIT allows us to source non-stocking SKU’s same day in turn allowing us to ship all orders out within 24 hours regardless of whether it’s in stock or not. This also minimizes our capital consumption and inventory holding costs.
How does barcoding fit into the process that in the end benefits your customers? Is it still a relevant best practice?
We use barcoding for our inventory management, putaway process, pick process and verification. Any technology system that helps maintain the accuracy of your inventory and also ensures the accuracy of your shipments to customers needs to be leveraged to its fullest extent.
What role can suppliers play in helping their partners do a better job of forecasting inventory?
The successful automotive ecommerce companies are built on strong data platforms. Channel partners need to move away from transactional relationships to partnerships where data exchange and brokering is an integral part of their relationships.
Moving forward, what best practices do you think will have a beneficial impact on the auto care industry?
Proper data management of SKUs will continue to be the focus and best practice of the auto care industry. Data between all channel partners needs to be continuously curated and synchronized. This will lead to a more efficient industry and lower supply chain costs. It will improve general operating costs, increased sales, and higher customer satisfaction in the automotive aftermarket.
