When the Supply Chain Strikes: How Auto Dealerships Can Navigate Disruption 

You don’t have to look far to see headlines about global supply chain strain. Between semiconductor constraints, freight bottlenecks, geopolitical shifts, and ripple effects from cyberattacks, the auto industry is navigating turbulence. For dealerships, these pressures aren’t abstract — they show up in delayed deliveries, constrained parts inventories, unpredictable lead times, and elevated costs. 

At Brady Martz, we believe the dealers who succeed under these conditions are the ones who prepare, adapt, and stay financially nimble. Below are key steps and examples to navigate supply chain disruption while protecting your performance. 

Supply Chain Disruption: More Than a Headline 

In 2025, the supply chain story is still very much alive. Ongoing semiconductor shortages, raw material volatility, and logistical delays are squeezing every tier of the industry. Compounding the pressure, recent cyber incidents at global manufacturers have shown how quickly a single disruption can ripple across the ecosystem. 

For dealers, this means that your supply of new vehicles and replacement parts is often less reliable — and margins may erode if those constraints aren’t managed proactively. 

Where It Hits Dealers Hardest (and What You Can Do) 

1. Vehicle Deliveries Lag 
   Delayed shipments or reallocated allocations can leave you short of high-demand models. 
   Strategy: Stay in close contact with OEM reps, get visibility into factory or port delays, and structure purchase contracts with flexibility for timing variation. 

2. Parts & Repair Delays 
   Service departments are often forced to tell customers that parts are on backorder. Even routine items like sensors, hoses, or electronics may be hard to obtain. 
   Strategy: Build buffer stock of your most critical parts, diversify vendors, and strengthen priority relationships with suppliers. 

3. Rising Input Costs 
   Shortages of raw materials or components can drive up costs — and OEMs often pass some of those increases along. 
   Strategy: Regularly review pricing, margin models, and other assumptions. Work with your finance team to stress-test scenarios if costs rise further. 

4. Customer Expectations vs. Reality 
   Customers often expect immediate delivery or quick repairs, but supply realities may not allow it. Misalignment can erode trust. 
   Strategy: Be transparent, set realistic timelines, and offer alternatives or upgrades when possible. 

Learning from Dealerships That Have Adapted 

Some dealerships have already adapted by shifting focus to fixed operations — building revenue stability through service, parts, and accessories while margins on new unit sales remain unpredictable. Others are negotiating more flexible terms with manufacturers and suppliers, including delivery schedules that reduce the risk of carrying costly inventory longer than necessary. 

The lesson: resilience often comes from diversification, communication, and proactive financial planning. 

What Dealers Should Be Doing Right Now 

• Run inventory scenario plans for best- and worst-case delays 

• Stress test financials for higher costs and slower inventory turns 

• Strengthen supplier relationships for priority access 

• Focus on high-turn, high-margin SKUs rather than overstocking 

• Invest in forecasting and analytics to detect disruptions early 

How Brady Martz Can Help You Stay Ahead 

Supply chain disruption is an external force — but your response is internal. The dealerships that thrive are the ones that prepare for uncertainty, stay flexible, and make decisions grounded in sound financial insight. 

At Brady Martz, our team understands the unique challenges dealerships face in today’s environment. We partner with clients to navigate disruption with confidence, helping them protect profitability today while staying focused on long-term success.