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Unlocking the Potential of the Automotive
OEM Service Parts Market
Consulting and Enterprise Solutions
Aftermarket Service Parts: A Profitable Sales Area
OEMs’ efforts to accelerate aftermarket sales have been hampered by:
High inventory
expenses in light of
uncertainties in demand
Competition from auto parts wholesalers, retail chains, and ‘mom and pop’
stores, which offer incentivized pricing and personalized delivery
Independent franchises
that may not participate
in initiatives championed
by OEMs
The Digital Leap
The convergence of the Digital Five Forces with the ‘connected car’ trend is transforming
the supply chain. Organizations should tap:
Big Data
Market
Insights
Integrated
Business
Planning
Optimized
Order
Management
Agile Fulfillment
and Logistics
01
02
03
04
1. Gauge Demand with Big Data
Obtain an accurate, near real-time picture of actual demand by leveraging Big Data and
analytics from:
Connected vehicles, which
offer vehicle mileage and
diagnostics data
Daily demand sensing, through PoS
and transactional data from dealers
and distribution centers
Social media, such as
popular vehicles, complaints,
and preferences
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2. Leverage Integrated Business Planning
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Create collaborative forecasts
with stakeholders across
functions, and at dealers and
distribution centers
Optimize forecasts by including
data from connected vehicles,
historical sales, customer
profiles, dealer inputs, and so on
Use inventory optimization
applications to strategically
place inventory across DCs
and dealerships
Ensure operational and financial
alignment with easily accessible
information within a web-based,
collaborative review process
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3. Streamline Order Management
Implement a Distributed Order Orchestration Hub to integrate demand and fulfillment
channels. The supply chain can then be effectively aligned to actual demand.
This approach offers the following benefits:
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Optimized order
fulfillment processes
Improved supply
chain responsiveness
Reduced waste and
inventory holding
costs
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4. Create an Agile Fulfillment and Logistics Network
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Develop a network that is responsive to market demand,
through tight integration of daily demand sensing with
warehouse and transportation management systems
Use GPS and mobile for dynamic routing and visibility to coordinate orders, stocking locations, vehicles, and loads
0102
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Boost Market Share through Better Collaboration
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Use next-generation IT
application software and new
technologies to collaborate
effectively with dealers
Offer dealers
delivery windows
and guarantees
Avoid losing sales
opportunities to competitors
by increasing the
availability of genuine parts
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9Copyright © 2016 Tata Consultancy Services Limited
Unlocking the Potential of the
Automotive OEM Service Parts Market
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