The independent aftermarket (IAM) has new challenges to face. New technologies and changing customer structures have been increasing market dynamism, and original equipment manufacturers (OEMs) are raising the heat in the competition. OEMs have been increasing their penetration into the spare parts market. An ERP solution geared to the automotive industry will help independent aftermarket retailers bring a tangible boost to their market position.
A study by McKinsey & Company analyzing the IAM up to 2030 foresaw a rise in the proportion of older cars in total registered vehicles in coming years. The average age of a car is around nine years even now, according to the Markus Partners M&A industry report. This means that fewer new cars are being bought. Of course, the OEMs are suffering from this negative effect.
The situation for OEMs is further complicated by customers going to independent repair shops that fit less expensive independent aftermarket parts once vehicle warranty periods have expired. The increasing share of independent repair shops places increasing pressure on OEMs. They have to act to keep their turnover figures up.
Improving data management using an ERP solution for the automotive industry
One option for OEMs is to provide second-service formats with original parts for aged automobiles. In addition, authorised repair shops receive special instructions and technical information. This gives them an advantage over the independent parts trade, as information that goes beyond the legally required data does not have to be collected with great effort.
Retailers in the independent aftermarket might consider using a powerful ERP solution geared to the automotive industry as a supporting data management system speeds up the process of gathering and sorting information.
Shipping and logistics with support from an integrative ERP solution for the automotive industry
IAM retailers face another challenge as OEMs attempt to circumvent wholesale by investing in and expanding on their own logistics. ERP solutions geared towards the automotive industry also level the playing field in this area.
As the system automates and facilitates the workflows involved in order creation and management. A shipping management solution can also be integrated to optimize route planning. This places IAM retailers on an equal footing with OEMs.