A lot has been happening in the vehicle parts trade. Mergers and acquisitions have recently seen a heavy increase in this market according to a study by McKinsey & Company. The last five years alone have seen more than 600 M&A transactions in the North American Independent Aftermarket (IAM), and nine of the ten largest European traders have been involved in M&A transactions in the same period. The German market will also need to come to terms with this development.

The IAM faces an uncertain future. New technologies create new opportunities, and also issues. Case in point: Vehicles currently on the market amass heaps of data. The data can be analyzed using big data technologies to generate customer and vehicle information and improve service. However, IAM protagonists still face the major challenge of actually collecting, processing and using the new data.

At the same time, the transition to e-mobility is reducing wear and tear on vehicles. This is important to the IAM as less wear translates to lower demand for spare parts. Self-driving vehicles are also set to reduce the number of accidents according to forecasts, which will further reduce demand for spare parts. Emerging markets such as China and competitors from e-commerce are increasing the tension in this competitive arena, contributing to further uncertainty.

To add to it all, growth in the vehicle parts trade can only be driven inorganically. It is becoming increasingly commonplace to see major corporations take over smaller players. These corporations share the aim of increasing their range and jacking up their profits by economies of scale.

Preparing for the future with an ERP solution for the automotive industry

If there’s one thing for certain, it’s that IT will play a major role in the success of M&A transactions. An ERP solution should provide maximum flexibility at the core of the IT infrastructure. Cloud-based solutions are at a clear advantage in connecting to supporting services and implementing technological innovation. They also provide streamlined, centralized administration and rapid implementation in the new company. This plays a crucial role as there’s no time to lose in bringing processes together. This ensures a future-proof solution for companies using an appropriate solution – ideal conditions for keeping ahead in a dynamic market.