As vehicles become more complex, the number of products needed to cater for them increases, which means the stock keeping unit (SKU) requirement grows. It can then become very difficult for the motor factor to know what they should or should not stock.
This is made worst because a large proportion of their cash can be tied up in stock, so they need to know that the decisions they are making are the correct SKU investment.
This facility allows customers to decide the correct level of stock investment and how it should be allocated. Reviewed at regular intervals it can circumvent potential issues and used proactively it can be used to switch slow moving stock for those with greater demand.