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A Thought Leadership Perspective by Casey J. Holyk, VP of Client Development for 12th Tech Auditing and Risk Management Software

PORTLAND, Ore., Feb. 21, 2024 /PRNewswire-PRWeb/ -- In the wake of the global pandemic, the automotive and agricultural industries experienced unprecedented challenges, from disrupted supply chains to fluctuating consumer demand. However, as we move forward, there is a silver lining on the horizon - retail inventory levels for automotive and agricultural products are now reaching optimal levels. Through experience and trials, dealers explore a new outlook on the ideal inventory levels. Lessons learned from pre pandemic over stocking to pandemic era inventory deficits has created new strategies.

Optimal Inventory Levels: A Cause for Celebration

The post-pandemic era has seen a remarkable resurgence in the automotive and agricultural sectors. Dealerships are now reporting ideal inventory levels, showcasing a delicate balance between supply and demand. This achievement is not only a testament to the resilience of the industry but also an indicator of its adaptability to changing market dynamics.

Efficiency Benefits for Dealerships and Wholesale Lenders

1.    Reduced Holding Costs:

• Maintaining excess inventory incurs holding costs for dealerships. By reaching ideal inventory levels, these costs are significantly reduced, leading to improved profit margins and financial stability for both dealerships and lenders.

2.    Mitigated Risk:

• Wholesale lenders are inherently exposed to the risks associated with fluctuations in market demand and inventory mismanagement. With efficient inventory levels, the risk of default decreases, fostering a more secure lending environment.

3.    Enhanced Collaboration:

• The alignment of inventory levels with market demand fosters a collaborative relationship between dealerships and wholesale lenders. By minimizing excess inventory and optimizing turnover, both parties benefit from a more symbiotic and sustainable partnership.

"Now is the ideal timing for lenders and banks providing wholesale inventory finance to explore new and innovative ways to audit dealerships. The efficiency achieved in retail automotive and agricultural inventory levels post-pandemic presents a unique window to implement advanced audit methodologies. By leveraging technologies that provide real-time visibility into dealership operations, lenders can not only enhance risk management but also foster a more transparent and collaborative relationship with their dealer network." - Casey J. Holyk, VP 12th Tech

To learn more about innovations in floor plan audits and risk management please visit or email [email protected]

Media Contact

Casey Holyk, 12th Tech, 3603600123, [email protected],

SOURCE 12th Tech