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HOW TO IMPORT USED VEHICLE PARTS IN BULK FROM JAPAN
If you're a commercial importer you have 2 main options for sourcing used vehicle parts in bulk from Japan.
They are sourcing only from a Single Scrap Dismantler or sourcing by an Open Sourcing System.
Scroll down the page to learn more.
SOURCING FROM A SINGLE SCRAP DISMANTLER
The vehicles a scrap dismantler receives are both damaged vehicles and non-damaged vehicles that no longer have buyers in the Japanese used car market.
Scrap dismantlers receive vehicles from dealers and private sellers and dismantle them mostly for scrap, but also make the parts available to the Japanese domestic market and sometimes to foreign based importers. The size of these operations varies from small mum and dad businesses processing just a few vehicles to large scale mechanised operations processing thousands of vehicles per month.
ADVANTAGES
- Simple. The stock automatically comes into the scrap dismantlers yard without you having to order it in. Good for importers wanting older parts stock from common end of life vehicles.
DISADVANTAGES
- Competition. Scrap dismantlers are often full of live-in foreign workers who compete for the same stock. This can force up prices and stop you getting the stock you want.
Scrap dismantlers also rely on free and cheap labour to dismantle vehicles so they can be scrapped. This labour is often provided by importers from low wage countries who've cut a deal with the exporter for free or cheap labour in exchange for a special deal on the parts the importer wants. This labour is essential for the exporter to run their business, so you may see the stock you want coming into the yard but never be able to get it because it will go to the companies who supply the yard with labour.
Scrap dismantlers usually run a domestic division which supplies the Japanese Domestic Market. The best stock will often go straight to the domestic division and not be available to foreign based importers.
- Unreliable. You don't know whether the stock you want will come in or not. You have no control. If it doesn't come in you simply don't get it and you may be forced to take stock you really don't want just to fill up the container. The availability of stock varies from month to month and year to year so you never really know what will be available.
- Restricted Choice. Usually you can't put stock from other suppliers in the same container as your scrap dismantler exporter, even if the stock you want is in the yard next door or just down the street.
- Restricted Profit Potential. Premium, rare and high value salvage vehicle stock will usually go to auction and not come into these yards unless it is ordered in by the domestic market section (in which case you can't get it anyway). This limits your profit potential. Stock from scrap dismantlers tends to be commoditised and you will often be competing with other importers in your market solely on price. Remember, if the stock you get has been easy to get then it will also be easy for your competitors to get. Did someone say "price war"?
- Limited Services. Services like premium stock protection and stock cleaning are often not available.
- Security. There are often no security measures in place to stop people in the yard getting access to your stock. Valuable parts can easily get stolen.
MOST SUITABLE FOR
Importers of older, common, low value parts. Particularly importers wanting to source on a parts basis rather than a whole vehicle basis and importers from low wage countries wanting to send workers to Japan to do the dismantling work.
SOURCING BY AN OPEN SOURCING SYSTEM
Sourcing by an Open Sourcing System gives you access to stock from multiple scrap dismantlers - both as whole vehicles and parts - as well as auctions, dealers, Japanese domestic parts networks and private sellers throughout Japan.
Stock is available on both a whole vehicle basis for dismantling and on a parts basis. If the stock is available in Japan you can usually source the stock.
ADVANTAGES
- Unlimited Choice. Source on a parts basis or on a whole vehicle basis and have the vehicle dismantled to your individual requirements.
- Unlimited Profit Potential. Source at the beginning of the supply chain - not the middle or the end - and capture the profit potential for yourself. Select from rare and high profit stock, not just common end of life cars where the parts have become common, low margin commodities.
- No Staff Costs. No salaries need to be paid out. No money needs to be wasted on international airfares. No productivity loss from having key staff away in Japan when they should be working directly in your business at home.
DISADVANTAGES
- More Work. Bringing exactly what you want to one place from multiple suppliers is more work and more expensive than just taking what you can get from a single supplier.
MOST SUITABLE FOR
Importers of late model parts, performance parts, luxury car parts and high value single make or model parts. Particularly those importers wanting to source at the beginning of the supply chain by buying high value salvage grade vehicles and having them dismantled to their requirements.
SUMMARY
There's no right or wrong way for importing containers of used auto parts from Japan and the best option for you will depend on your individual needs.
However, an open sourcing system where you have access to hard to get and high profit stock will - if you select properly - give you more profit and pricing power in your market.
TS EXPORT® has been a pioneer in offering importers of used auto parts containers from Japan an Open Sourcing System.
RESOURCES
Click below to learn more about PARTS FROM JAPAN: