Node value creation in the Petrol Car parts supply chain

From the analysis of the value nodes of the Petrol Car parts supply chain, assuming that the value transfer from suppliers to car owners is 100%, then the value from suppliers to dealers to repair shops accounts for about 35%-40%. This is They are very small, and some dealers have several floors. When a repair shop supplies parts to car owners, the gross profit margin is basically above 50%. It is calculated that the value chain from repair shop to car owner can account for 60% or even 65%.

The so-called supply chain capability is how to make the value of your node account for a larger proportion. For example, some large chain maintenance companies build their own supply chains, which is nothing more than passing them on to the dealer level and reducing supply nodes. But this space is very limited. Now some suppliers want to expand downstream, not only to manufacturers, but also to channel distributors, replacing the original intermediate distributors. I remember that when many manufacturers were making accessories in the early years, they set up offices in various places, and the distribution offices were directly involved in the distribution business, but they failed in the end. So can they succeed now under the new retail concept? Manufacturers should focus on stable product quality, technology application and product supply.
All the work currently done is based on this kind of thinking and consideration, mainly direct-operated stores, with nearly 300 stores and distribution outlets in China. The warehouse and employees are owned by the company and invested directly by the company. Products are purchased directly from upstream suppliers, sent to stores in various locations through central warehouses, and then distributed to repair shops by directly-operated stores. Direct-operated stores only provide products and services to repair shops and indirectly provide services to car owners.
The traditional understanding is that it is engaged in distribution business, but in fact it is a platform that provides services, distribution, warehousing, settlement and other services for upstream suppliers and downstream customers.