Aftermarket Analytics June 4, 2019 Justin O. Holman, Ph.D.Aftermarket Analytics Enterprise Software for Automotive Parts Inventory Management June 4, 2019 Justin O. Holman, Ph.D

Aftermarket AnalyticsEnterprise Software for Automotive Parts Inventory Management

June 4, 2019Justin O. Holman, Ph.D.

www.aftermarketanalytics.com

Introduction

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• Pueblo native• Attended Thatcher, John Neumann, Freed, Centennial• B.A. Claremont McKenna College• Ph.D. University of Oregon• Moved family (wife + 3 kids) and company from Ann

Arbor, Michigan to Pueblo in 2012• CSU-Pueblo Hasan School of Business faculty


Overview

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• Automotive Aftermarket Industry• Inventory Analyst• Our Clients, Competitors, Team• Financial Projections


Automotive Aftermarket: $300B+ and GrowingSelect Part Categories:

AC Air FiltersAlternatorsBall JointsBatteriesBeltsBrakesCatalytic ConvertersCoil SpringsCV Boots/JointsDistributor CapsDrive BeltsExhaust SystemFuel FiltersFuel PumpsHead GasketHosesIgnitionMufflers

Oil Filters/PumpsOxygen SensorsRadiator HosesShock AbsorbersSpark PlugsStartersStrut MountsTail PipesThermostatsTie Rod EndsTiming BeltTiming ChainTiresTransmission FluidValve Cover GasketWater PumpsWheel BearingsWindshieldsWiper Blades


Total Vehicle Sales (China vs US)

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Automotive Aftermarket: Industry Challenges

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• Challenge: Inventory Data Management• Solution: Inventory Analyst 2.0

– Suppliers • Category Management

– Distributors • When to ADD, KEEP or REMOVE inventory

– Retailers • Inventory Assortment planning


Our Solution

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• Inventory Analyst– Combine Data

• Catalog, Part-to-Vehicle, Vehicle Pop, Replacement Rates, Demographics, Climate, Sales, Inventory

• State, County and/or ZIP Code– Analyze Inventory by Part or Part Category

• Demand forecasting• Stocking recommendations• Easy data query, export, mapping/visualization


Our Solution

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• Inventory Analyst– Runs in the cloud– Nothing to install– Software as a Service (SaaS)– Subscription model– Typical deployment

• Customization ~$60k• Annual Licensing ~$30k

www.aftermarketanalytics.com9

Inventory Analyst Example Use Case





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Aftermarket Clients

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Market Dynamics and Competition

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VIO Data

Basic Replacement Rates

Inventory Management

Intuitive, Map Based Interface

Robust Predictive Analytics Software/SaaS


Team

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• Team– CEO Justin Holman, Ph.D.– Product Development Bobby Valentine, Ph.D., Alex

Marck, Yassin Bahid, Brian Hicks– Interns Jared Strong, Joseph VonFeldt– Sales Shawn Wills*– Admin Nicole Heyn

* Shawn Wills works in Denver, all other employees (6.5 FTE) work in Pueblo


FY Revenue Projections

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Projected Total:

2019: $593,000

2018: $244,000

Change: +143%


Revenue Projections (2019-2022)

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Projected Growth:

Revenue: +860%

Payroll: +467%


Seeking Growth Capital

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– $138,000 for Marketing• Marketing Manager Salary/Benefits: $60,000• Marketing Materials: $12,000• Advertising (Adwords, The Greensheet): $8,000• AASA Affiliate Membership: $4,000• 2019 AASA Technology Conference: $12,000• 2019 AAPEX/SEMA Conference: $18,000• 2020 AASA Global Summit: $12,000• 2020 AASA Vision Conference: $12,000



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– $198,000 for Product Development• Software Developer Salary/Benefits: $80,000• Quality Assurance Salary/Benefits: $50,000• Summer Internships (2): $12,000• Vehicle Registration Data: $30,000• Hardware for high-speed computing: $6,000• Prototype solution for Distributor Market:

– Consultant (Pete Kornafel): $20,000



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– $60,000 for Client/Account Management• Account Manager Salary/Benefits: $60,000



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– $138,000 for Marketing– $198,000 for Product Development– $60,000 for Client/Account Management

● Total: $396,000


ROI for Pueblo

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– Pueblo Jobs by 2022• 24 FTE • Mean Salary: $70,000• Payroll: $1,680,000

– Seed software/technology industry in Pueblo• Made in Pueblo • Compared to traditional manufacturing

– Better industry prospects– Better salaries/benefits


PEDCO Limitations

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– Met with Jeff Shaw and Joe O’Brien• Pedco limits funding to CapEx • We don’t have substantial CapEx• Rent abatement isn’t worth the effort• Our primary expense is payroll• Can you help us overcome this hurdle?


Can you help us tap under-utilized talent?

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• Meet Bobby Valentine• South HS graduate• BS Engineering (U. Colorado)• PhD Physics (U. Arizona) • Lead Software Developer


Can you help us keep our brightest young people?

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• Meet Alex Marck• South HS graduate• CSU-Pueblo graduate• Top CIS student award• Intern• Full-time employee• Software Developer


Made in Pueblo

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• Team– CEO Justin Holman, Ph.D.– Product Development Bobby Valentine, Ph.D.,

Alex Marck, Yassin Bahid, Brian Hicks– Interns Jared Strong, Joseph VonFeldt– Sales Shawn Wills– Admin Nicole Heyn

Centennial HS grad South HS grad CSU-Pueblo Affiliation

Contact:Justin Holman

[email protected](719) 582-6555

mailto:[email protected]

Documents

Aftermarket Analytics June 4, 2019 Justin O. Holman, Ph.D.Aftermarket Analytics Enterprise Software for Automotive Parts Inventory Management June 4, 2019 Justin O. Holman, Ph.D