ESG concept as a tool for optimising spare parts stocks in car service centres in the Republic of Cyprus

Abstract

The article proposes a comprehensive analytical study of the potential for the use of the ESG concept as a tool for optimizing spare parts stocks in car service centers of the Republic of Cyprus. The study is based on the materials of the Statistical Service of the Republic of Cyprus, on the information provided in the relevant scientific literature, as well as on the results of the empirical research. An analysis of the management accounting data of 12 car service centers of the Republic of Cyprus was carried out, including 4 dealer networks, 4 independent multi-brand companies and 4 family businesses. The directions of implementation of the environmental part of the ESG concept at car service enterprises of the Republic of Cyprus are specified. A comparative assessment of the profitability of stocks and CO2 emissions in the business processes of managing auto parts stocks has been clarified. Expert assessments of the state of ESG management in the spare parts inventory management system in the analyzed car service centers are presented. It is recommended to conduct optimization of spare parts inventory management in car service centers of the Republic of Cyprus to multiply the economic and social effects from the development of the elements of the ESG concept based on the author’s CDMD model: Systematism - Decentralization - Monitoring (measurements) - Digitalization. The introduction of the proposed CDMD model should provide economic benefits, expressed in an increase in the profitability of inventories and various ESG gains.