The automotive industry seems to break a new record every year. People are keeping their cars longer than ever before. They’re also driving more miles than any period on record. It is no surprise, then, that aftermarket sales for parts and accessories are also at record highs.
As demand continues to spike, billions of dollars of inventory is shipped almost daily. The firms best equipped to capitalize on the growth of the aftermarket are those that are able to effectively manage cash flow and ensure liquidity to keep operations running smoothly. Global Asset-Based Lending (GABL) and UPS Capital Cargo Finance® can help. GABL will allow you to borrow against the value of offshore warehoused, in-transit goods, domestic receivables or domestic inventory, freeing up cash flow tied up in your supply chain. UPS Capital Cargo Finance offers an unsecured line of credit with flexible terms to borrow against in-transit inventory. This turns increased liquidity into a competitive advantage that can take your business to the next level.
Emerging markets represent 85% of the world’s population.2
Changing macroeconomic trends, including increased in-vehicle technology and near-shoring have resulted in an automotive supply chain that is longer and involves more firms, countries, carriers and modes of transportation. The increased complexity has made it harder to mitigate risk and work around unplanned disruptions. With Cargo Insurance through UPS Capital Insurance Agency, Inc., you can safeguard the value of your shipments against loss or damage with a fully customizable insurance solution. No matter where your products are in your supply chain, we’ve got you covered.
Recent trade agreements are poised to make American exporters more competitive. However, auto firms will need to enter new markets wisely to avoid disruption to their operations and their bottom line. Trade Credit Protection Services can help mitigate the risks of going global. By using Trade Credit Insurance through UPS Capital Insurance Agency, Inc. to protect receivables against insolvency, bankruptcy or protracted default, companies can comfortably accept larger domestic and export orders.
The automotive industry faces challenges as varied as the products that need to be transported. Rely on UPS Capital to fine-tune every link of your supply chain with our products and services, proven experience and logistics capabilities.
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Omega: Major automotive parts distributor puts its cash conversion cycle into high gear.
Omega, one of the largest distributors of automotive air conditioning equipment, has more than 20 million parts in inventory in a typical day. But, with such a tremendous amount of inventory constantly in motion, it began to impact Omega’s cash conversion cycle, even with two lines of credit. So UPS introduced Omega to UPS Capital’s Global Asset-Based Lending. It enabled Omega to finance in-transit inventory and receive the funding they needed to cater to international markets much earlier in the supply chain.
2. IMF - The Case for a Global Policy Upgrade, 7/29/15