We recently interviewed Alex at Partmaster, an Endeavour client since 2021, to understand how they are managing in the current economic environment.
The global economy is facing significant challenges, and the automotive parts industry is no exception. From supply chain disruptions to rising operational costs, businesses across the sector are under pressure. In such an environment, the ability to adapt quickly and build resilience is essential.
The automotive parts industry has been hit hard by a range of economic factors. Supply chain issues have led to inventory shortages, rising costs are putting pressure on margins, and consumer purchasing habits are shifting as a result of inflation and other financial pressures.
These challenges are complex and have created an environment with the following impacts for Partmaster:
Inflation - Consumers are adjusting spending habits, impacting demand.
Adapting quickly is essential for staying competitive. As Autotalk pointed out, New Zealand’s automotive industry will be forced to adapt. Vehicle registrations are down 26% year-to-date compared to last year, signaling reduced demand and tighter cash flow. These pressures require businesses to reassess financial strategies, adjust supply chains, and forecast more accurately.
As costs continue to rise and demand declines, businesses are being pushed to find ways to minimise ongoing expenses. The focus is shifting towards adopting technology, optimising processes, and renegotiating supplier contracts to reduce costs. With rising lease costs, salaries and importation fees, businesses can’t pass these increases onto consumers, leading to negative growth at its highest level in decades.
Recruiting talent, particularly in critical roles such as technicians, supply chain experts, and product managers, is becoming harder as many Kiwis seek work overseas.
“Yes, it's been very challenging. Looking back a couple of years to COVID, we thought it would be a short-term issue. We paid our staff 100% of their wages and let them go home, thinking it would be over in three months. But it dragged on through 2020 and 2021. It’s been tough for us, especially with the ongoing supply-side effects that lasted into 2023. As a result, we’ve had to make some tough decisions around cost cutting and overheads, which has been difficult for our company culture.”
— Alex Polaschek, CEO, Partmaster
Partmaster is tackling these challenges head-on through strategic actions like optimising its inventory management, adjusting its pricing strategies, and innovating with new, more sustainable products. Endeavour is helping Partmaster meet these challenges with tailored ERP solutions that streamline operations, enhance decision-making, and improve cash flow management.
Economic pressures are reshaping the automotive parts industry, making it critical for businesses to manage rising costs while maintaining product quality, customer satisfaction, and profitability. Endeavour is partnering with businesses like Partmaster to provide ERP solutions that help streamline operations and improve financial performance, providing a vital strategy amongst many to help manage a complex business. Partmaster have a variety of strategies including technology as outlined below that have helped them remain agile and responsive to market forces.
With ongoing supply chain disruptions and increasing lead times, efficient stock management is more critical than ever. For businesses like Partmaster, accurate demand forecasting and lean inventory are essential. Endeavour’s ERP solutions, including Microsoft Dynamics ERP, have played a key role in achieving this by leveraging advanced planning and forecasting algorithms. These tools analyse historical data and market trends to optimise stock levels, ensuring Partmaster can reduce inventory on hand while maintaining strong cash flow. This high-level strategy enables them to stay agile and responsive without overcommitting resources.
At the core of this strategy is a sophisticated forecasting engine that combines past sales data, supplier lead times, and seasonal trends to predict future demand with greater accuracy. By dynamically adjusting stock levels in response to real-time insights, Partmaster can proactively manage supply fluctuations and avoid overstocking or shortages. This data-driven approach ensures that inventory investment is aligned with actual demand, improving overall efficiency and profitability.
When you walk through Partmaster’s warehouse, you’ll notice that stock doesn’t just sit around—it comes in and goes straight back out. This streamlined approach is a result of smart stock management and accurate forecasting. By reducing overstock, businesses can plan better, maintain healthier cash flow, and keep operations running smoothly.
As the automotive world shifts toward electric vehicles (EVs), sustainability is more important than ever.
“The environmental concerns for an internal combustion engine provider are a challenge to us. What we've done is we've brought out into New Zealand the first fully non-metallic brakes. These are for smaller vehicles, helping reduce environmental impact, and we think the opportunity there is significant.”
— Alex Polaschek, CEO, Partmaster
Partmaster is committed to sustainability and has introduced New Zealand’s first fully non-metallic brakes for smaller vehicles. Endeavour’s ERP solutions support Partmaster in managing this transition to more sustainable products, helping them stay competitive and compliant in a rapidly changing market.
Successful businesses must strategically focus on investments that deliver the highest returns. Endeavour’s ERP tools enable businesses to pinpoint areas of opportunity, improve operational efficiencies, and optimise resource allocation. By leveraging data and insights, businesses like Partmaster can make smarter investment decisions that contribute to long-term growth.
This ability to act fast and deploy targeted campaigns is a direct result of the streamlined processes and systems in place. Partmaster’s agile approach allows them to allocate resources effectively, test strategies swiftly, and identify profitable avenues for investment in real-time. By maintaining this flexibility, Partmaster can make timely, data-driven decisions that drive growth and ensure the business remains competitive and resilient in the market.
As the electric vehicle industry expands, supply chains must evolve to keep pace with new demands, complex global sourcing, and shifting market conditions. Partmaster is addressing these challenges by adopting a strategic, technology-driven approach to supply chain resilience, ensuring they can adapt quickly to disruptions while maintaining efficiency.
At the core of this strategy is the integration of advanced forecasting and inventory management within Endeavour’s ERP solutions. By leveraging real-time data, predictive analytics, and automated stock planning, Partmaster can anticipate demand fluctuations unique to the electric vehicle sector. This enables them to maintain optimal stock levels, secure critical components ahead of time, and minimise the risk of supply shortages or costly overstocking. By aligning their supply chain strategy with the demands of an evolving market, Partmaster is not only strengthening resilience but also positioning themselves as a reliable supplier in the electric vehicle era.
Endeavour’s ERP solutions go beyond day-to-day operations; they help businesses plan for the future. With the ability to quickly adjust to market trends, manage risks, and make data-driven decisions, businesses can build a solid foundation for long-term growth and resilience. As the automotive parts industry continues to evolve, businesses that leverage technology to adapt to change will be best positioned for success.
“So, there is a requirement for more resilience as a business to make sure that you can absorb the shocks that just seem to become more regular and more consistent. We're seeing these challenges now, and it is certainly a challenge, particularly for younger businesses that have just started out, may have debt, and things like that. We've seen a lot of businesses succumb to the pressure of current financial stress, and my view is that inevitably, there’s more to come, given the nature of the environment we now find ourselves in—with geopolitical shifts, weather events, and more.”
— Alex Polaschek, CEO, Partmaster
Endeavour’s solutions empower businesses like Partmaster to not only overcome current challenges but thrive in the long term. Through strategic ERP solutions, Endeavour is helping businesses optimise operations, improve cash flow, and make smarter decisions that drive profitability.
Ready to drive your business forward? Let’s discuss how Endeavour’s ERP solutions can help you streamline operations, reduce costs, and build resilience in these uncertain times. Contact us for a tailored consultation and check out our case study with Partmaster to see how we’ve helped businesses like yours succeed.