Basic HTML Version
78
MOTORINDIA
l
July 2012
Need for innovative approach to
tackle aftermarket challenges
The auto parts aftermarket indus-
try is experiencing significant chal-
lenges in serving the needs of vehi-
cle owners given the proliferation of
models and an explosive growth in
part numbers. Managing this com-
plexity is further compounded by
the fragmented nature of the auto
parts retail environment and legacy
practices in distribution.
Leaving aside small volume niche models that are
served through OE dealerships, all other vehicle parts
programs face the same challenges in ensuring they
reach parts that are required to the vehicle owner at
the time and place needed. This is equally applicable
to OE service parts programs and independent after-
market programs by component manufacturers in their
brand or distributor brands.
The key to managing the challenge is deciphering the
critical success factors for a parts program as under:
- Achieving an adequate scale of operations in serv-
ing a vast base of retailers with a rich enough basket
of parts.
- Ensuring service
response in support-
ing demand.
- Managing working
capital to achieve a high
turnover ratio.
Innovative technology can
provide this industry the solutions
needed to succeed in this environ-
ment.
The need to reach parts to retail locations in a land-
scape that is constantly evolving means managing a
sales force that is distributed. These field personnel
have limited visibility to stock and often struggle to
cope with enquiries for a vast number of parts.
Use of e-catalogues and sales force automation solu-
tions permitting instant retrieval of stock/price/credit
status information will boost sales force productivity.
That the same solution can be extended to track and
optimize sales routes is an added advantage.
If programs have
to cope with in-
creased variety of
parts, this is ulti-
mately the only way
to go. Current manu-
al or legacy systems
have just too much
scope for errors
focus on aftermarket
By S. Ramachandra, Managing Partner, Littler Associates
Mr. S. Ramachandra