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Online sourcing of service parts for retail purchase or wholesale trade (in either the collision repair or the maintenance/mechanical-repair sectors) is both essential to financial health of U.S. and Canadian automotive dealerships and confusing (a half-dozen different types of solutions, over 25 suppliers of solutions and several distinct supporting services). This presentation given at the Digital Dealer Conference 15 begins to place dealer options in a structured framework. Finally, this presentation makes clear that the traditional dealer IT decision-making process of select-the-best-solution is wrong ... that dealerships should view each solution as a "sales channel" and increasingly dealers will find that they are best served by selecting multiple solutions even for a single market segment.
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1
Parts e-Commerce
Fellowes Research Group, Inc.
www.linkedin.com/in/tedfellowes
Agenda – Online Marketing/Sales
Not Covered
• Dealer as Seller
• Captive Solutions (OEM)
Introduction
Markets ◦ Retail
◦ Wholesale – Collision
◦ Wholesale – Mechanical
◦ Truck
◦ Dealer-to-Dealer
Systems Integration
Future
Q&A
Research – Call for Dealers
Introduction
Markets are Dissimilar (but some Interaction)
Half-Dozen Solution Types (partially aligned with markets)
Many Solution Providers – Even More Solutions
Complexity: Related Services & System Integration
Marketing & Advertising $$$ required by Parts – each
eCommerce solution is a sales channel
Buyer Loyalty (Trading Bond – Importance to Buyer)
Low Medium High
Buyer Urgency (relative to
price)
Low (> 2 days)
Marketplaces eStores Bidding
Marketplace eStores
eStores Wholesale Portals
Medium (1 – 2 days)
Bidding Locators
Retail Portals
Retail Portals Locators
Wholesale Portals Direct Client (DMS / EPC)
eStore
High (≤ 1 day)
Locators Retail Portals
Locators Retail Portals
Wholesale Portals Direct Client (DMS / EPC)
Introduction [continued]
Solution Clusters Collision (Body Shop) Mechanical (Fleet / IRF / All)
Success Factors: ◦ Price Advantages (for Buyer)
◦ Systems Integration (B2B; Buyer-side primary; Seller-side secondary)
◦ Dedicated resources – Seller
◦ Boosts communications (buyers still need assistance / confirmation)
◦ Other buyer conveniences (24 x 7 ordering; digital invoices; photos …)
No one right solution – successful dealers operate
multiple eCommerce solutions
Invest in success
Introduction [continued]
The days of no
advertising/marketing
budget for Parts is dead
Retail
Wholesale Collision
Wholesale Mechanical
Truck
Dealer-to-Dealer
Markets
Survey
Retail
Frost & Sullivan – July 2013 Aftersales – Retail for Parts & Accessories
2012 2020
Annual Sales e-Retail $4.6 B $16 B
As % of Total Sales 4% 10%
Marketplaces Share 80% 75%
eStore Share 20% 25%
Retail [continued] Solution Types ◦ Marketplaces (eBay, Amazon, …)
e-Listing critical (WHI, TM, ADP/PV, OEC, DST, PW …)
Tools – what sells … at what price (Terapeak)
Commission
◦ eStores
Catalogs (enhanced MOTOR, Dealer EPC)
Features /Capabilities (shipping integration/calculators, taxes, payment …)
Two Use-Cases: Aggressive Price & New Brand; Store Brand
Online Marketing Services
url; 2-4-1
SEO/SEM
Website Design / Customization
Promotions (coupons, …)
Hot
eBay
Deck
Retail [continued] Solution Types [continued]
◦ Portals
Nearly all are Automaker Captive
Vary widely on costs, quality, performance, web presence …
Make – Parts Manager Meetings: Discuss
Coming: ◦ More Photos & Illustrations – Videos
◦ More/Better eListings – eBay & Amazon
◦ Improved Parts Specification – Cataloging, VIN
Retail [continued] Firm
Makes & Types
Solution Scope
Catalog Type Marketplace
eListing Comments
Amazon All Parts
Accessories MOTOR (OE)
Epicor (AM) Marketplace N/A
Part-Finder: fitment filtering via embedded application info. Listing – ACES (non-collision); PartsLink (collision) – Channel Advisor
ChromeData OE Some Makes
Parts Accessories
OEM Cats Portal No Automaker programs: GM – accessories only; Chrysler – parts & accessories
DST All Parts MOTOR (OE) Dealer eStores No JV with Insignia
eBay Motors All
Parts Accessories
MOTOR (OE)
Epicor (AM) Marketplace N/A
Refined OE & AM part fitment filtering via embedded parts catalog- content (Ford EPC content in OEDepot). e-listing – multiple choices.
Insignia Group OE Accessories OE and AM Acc. Catalogs
Dealer eStores No Accessory eStores complement full accessory sales solutions – wide coverage of AM accessory catalogs; visualization capability.
InterCity Services OE Parts
Accessories TM & PWS Dealer eStores No
Custom solutions with MOTOR-based catalogs from others.
Izmo OE Accessories
OE an AM Acc. Catalogs
Dealer eStores No Accessory eStores complement full accessory sales solutions
OEConnection OE Some Makes
Parts SBS (OE) Portal eBay ADP, R&R and DT DMS Integration – optional; OEM Dealer EPCs from SBS (Snap-on)
PartsFirm OE Parts
Accessories PWS Dealer eStores No
OEMParts.net & DealerParts
Parts Website OE Parts
Accessories MOTOR (OE) Dealer eStores eBay (pilot)
U.S. eStore; MOTOR-based catalog supplemented; DMS integration.
RevolutionParts OE
Parts Accessories
MOTOR (OE) Dealer eStores No U.S. eStore; MOTOR-based catalog supplemented; hotspots, search & VIN; MSRP & Buyer Price; Avail – opt; DMS Integ. – opt; shipping calc
R&R OE Parts
Accessories TradeMotion solution
Dealer eStores No Via Naked Lime unit of R&R
SBS OE Some Makes
Accessories OE Acc. Cats Dealer eStores No Accessories (EASy) – Chrysler dealers – transitioning to Insignia
SimplePart All Parts
Accessories OEM EPCs & MOTOR
Dealer eStores No U.S. & Canada; Google / Bing Shopping;eBay Commerce Network capable
SkyParts All Parts MOTOR (OE) Dealer eStores No
Software Global OE Parts OEM EPCs Dealer eStores No
Trademotion OE Parts
Accessories MOTOR (OE)
OEM Catalogs Dealer eStores
eBay Amazon (coming)
eStore w/ MOTOR-based catalog; also OEM EPCs for OEM programs (e.g., Nissan); eBay listings included; Dealer Group share leader
WHI (Sophio platform) OE Parts MOTOR (OE) Dealer eStores eBay eBay listings – included; MOTOR-based catalog
18
Retail [continued]
Excluded: Solutions that are not platforms open to participation by multiple suppliers (sellers) Solutions not yet announced For Retail, only instant response locators included
Firm OE AM Trade Model
Catalog Marketplace
eListing Comments
Locator (Must be open to
consumers)
ADP - PartsVoice Yes
Instant Match(es)
eBay Toyota and VW corporate locators; all-makes also
OEConnection Yes
Instant Match(es)
eBay Some of OEC parts locators open to consumers; eBay listing option
RearCounter Yes
Instant Match(es)
WorldParts (Fast-Net)
Instant
Match(es)
Has an eStore with no catalog – not for established trading partners
Retail Marketing Services
Autojini Yes
Channel Advisor Yes Yes
Skilled at Amazon and eBay listings and programs
Dealer Online Mktng
Yes
Reynolds & Reynolds
Yes TM Naked Lime – Parts & Accessories portal
Spork Marketing Yes PW & TM
Key: ◦ Dealers forced into multiple programs ($, productivity)
◦ Wholesale Marketing Services
800-lb Gorillas ◦ Automaker: Pricing Programs (“Price Matching”) > 90% UIO
◦ Buyer-Centric Solutions: Parts Procurement (State Farm, Intact)
Clash of the Networks ◦ OEM Solutions (OEC, Infomedia)
◦ Insurer Solutions (PT, APU, Progi …)
◦ MSO Solutions (OPS – Service King; PCL – CARS)
Litigation
Collision Wholesale
Coming: ◦ Pricing programs from nearly all automakers
◦ New approaches and solution providers
◦ Increasing role for “Estimatics” system providers
◦ Integration across networks
Collision Wholesale [continued]
Collision Wholesale [continued] Firm New OE
AM – Body
AM – Mechanical
RP
Trade Model Comments
APU (Solera) Yes Yes
Quote; Order Insurer programs; estimate integration; locate, validate fitment then order; Dealers: ‘recovered’ parts and surplus; certification process; Free
CCC True Yes Yes Yes Yes Quote; Order U.S.; Electronic Invoicing; full integration w/ CCC BMS; “Limited” DMS Integ.
Car-Part Yes Quote; Order Two-way CES integration; App in Mitchell RepairCenter;
First Choice Canada; First Choice Auto Repair Systems EzPartOrder
Infomedia Some makes
Quote; Order Microcat Auto PartsBridge - OE Pricing Incentives; body shop & dealer access to OEM EPC; auto-validation of part # fitment
Mitchell Yes Yes Yes Yes Order RepairCenter ToolStore – Integration with OEC, OPS, C-P, Izmo, LKQ, …; Free
OEC Yes
Quote; Order OE Pricing Incentives; auto-validation of part # fitment Directly embedded in Mitchell’s Repair Center
OPS Yes Yes Yes Yes
Bid; Quote; Order OPSTrax – Group Buying pricing; estimate integration (one-way); national; DMS integration; U.S. now, Canada 2014
PartsCheck Live Yes Yes Yes Yes
Bid; Quote; Order Estimate integration (one direction), group buying discounts, Insurer audit capable, cloud-based, integrated i-Messaging, payment srvcs (opt.)
PartsTrader Yes Yes Yes Yes Bid; Quote; Order Insurer programs; estimate integration (two way)
ProgiParts Yes Yes Yes Yes Bid; Quote; Order Insurers – Intact, SSQauto [Canada-only for now]
Trademotion Yes Order Large base of Dealer Groups
UParts Yes Yes Yes Order
WHI Yes Order Real-time integration w/ leading DMS types – availability, price, quote/invoice
14/
11
Collision Wholesale [continued]
Firm New OE AM – Body
AM – Mechanical
RP
Trade Model
Comments
Locator (Must be open to Collision Repair
Facilities)
APU (PartsNetwork) Yes
Instant Hits Real-time integration for RP inventories; results by part type, grade
Car-Part.com Yes Instant Hits Database updated daily; often confirmed
real-time
CCC Instant Hits Live integrated access to inventories
OEC Yes Instant Hits Some OEC locators open to shops; parts
inventory db – nightly update
PartsCheck Live Yes Yes Yes Yes Sellers’ Replies Broadcasts needed parts to its network –
used for hard-to-find parts
PartsTrader Yes Yes Yes Yes Sellers’ Replies Request for bid can operate as a search to
find who has the part
PartsVoice Yes Instant Hits Dealer parts inventory database – nightly
update
ProgiParts Yes Yes Yes Yes Instant Hits & Sellers’ Replies
Some customers (insurance appraisers) locate RP & AM parts via ProgiParts
RearCounter Yes Instant Hits
Collision Wholesale [continued]
Firm New OE
AM – Body
AM – Mechanic
al Recycled Comments
Wholesale Marketing Services
Advantage Data Yes
Multi-National – Largest in U.S./Canada
Dealer Solutions One Yes Regional
OEConnection Yes North America
OE PartsDirect Yes Regional - Southeast
PartsCheckLive Yes Yes Yes Yes North America
Resource Automotive Yes
North America; OEM programs to boost wholesale
The Parts Connection Yes
Nearly national – 40k Shop database; contests & mailings
Logistics
Advantage D & L Regional
OPS Yes Regional (for delivery services)
PartsCheckLive Optional Optional Optional Optional
Profession’l Parts Grp
Mechanical Wholesale
Introduction ◦ Buyers (IRFs, Fleets, …) > 200,000
◦ Order average only a few parts that must be delivered ASAP
◦ OE Parts are only 20 to 25% ($ weighted)
Key: ◦ Availability and/or delivery status – automatically, immediately
◦ Parts Catalogs (OE: MOTOR - improved, Dealer EPC)
Types: ◦ Portal
◦ Enterprise eStore
◦ Direct (DMS/EPC)
◦ eStore
Mechanical OE eCommerce developing
less quickly than collision
Mechanical Wholesale [continued]
Coming: ◦ Buyer-centric parts sourcing (initially as a niche)
◦ Improved parts catalogs and VIN info
◦ Growing integration
◦ Additional solutions and solution providers
Mechanical Wholesale [continued]
Firm Types/ Makes
Trade Model
Catalog
Marketplace eListing
Comments
DST AM & OE All
Availability Real-time Ordering
MOTOR (OE)
Epicor (AM)
Ford eCounter & GM WIP; MOTOR-catalog based eStore; DMS Integration; Epicor AM catalog; shop systems integration
Epicor / IAP AM All Ordering Epicor (AM) Epicor parts catalog; shop systems integration
Infomedia OE Some Ordering IFM (OE)
Toyota TPAS (Toyota Parts & Service); OEM Dealer EPCs
InterCity Services OE All Ordering TM, PWS Custom solutions (others’ MOTOR-based cats)
OEConnection OE Some
Avail (real-time opt)
Ordering; Quoting SBS MORE (OE) eBay
ADP, R&R and DT DMS Integration – optional; OEM Dealer EPCs from SBS (Snap-on)
PartsCheckLive All & All
Ordering Quoting;
None Group buying discounts, cloud-based, integrated i-
Messaging, payment srvcs (opt.)
Parts Website OE All Ordering MOTOR (OE) eStore with MOTOR-based catalog
SimplePart OE & AM All Ordering
OEM EPCs & MOTOR
U.S. & Canada; DMS integration optional; parts availability optional
Trademotion OE All Ordering MOTOR (OE)
eBay Amazon (coming)
eStore w/ MOTOR-based catalog; large base of Dealer Groups; PartProtection (warranty); dealer website integration
WHI OE & AM All
Availability Real-time Ordering
MOTOR (OE)
WHI (AM) eBay
ADP, R&R and DT DMS integration – included; MOTOR-based catalog
10/
09
Mechanical Wholesale [continued]
Firm Types/ Makes Trade Model
Marketplace eListing
Comments
Locator (Must be open to Independent Repair
Facilities)
OEConnection OE Some Instant Hits eBay
Some of OEC parts locators open to shops
PartsVoice OE Some Instant Hits eBay
Integrates w/ some shop systems (Mitchell1)
RearCounter OE Instant Hits
WHI OE & AM All Instant Hits eBay
Real-time part availability check in network
Wholesale Marketing Services
Advantage OE
Multi-National – Largest in U.S./Canada
OE PartsDirect OE Regional
Resource Automotive OE
No. Am.; OEM programs
Logistics Advantage D & L OE & AM Regional
Commercial Truck
Key ◦ Very different from Auto
◦ OEM Dealer EPC vs. VRMS and Cross-Reference
◦ Buyers are primarily Fleets (secondarily, IRFs)
Solution Types ◦ Volvo-Mack – Portal: Nexpart (WHI)
◦ Isuzu – Enterprise eStore: ASI
◦ Direct DMS Application – Karmak (& ADP FleetConnect)
Coming ◦ Limited choices – Expanding
Commercial Truck [continued]
Firm OE AM RP Trade Model Catalog Comments
ADP FleetConnect Yes Ordering None Dealer parts replenishment of fleets
ASI (Automotive Systems, Inc.) Some
Makes Ordering ASI (OE)
Isuzu OE & “will-fit” all-makes parts; wholesale eStore w/ directory at Isuzu corporate website
FindItParts Yes Yes Ordering
None (WMRS &
x-ref)
Truck and heavy equipment
Karmak Yes Ordering None
Direct DMS client – access granted by dealer
PartsRiver
Yes Yes ? Ordering; Quoting; Bidding
None (WMRS &
x-ref)
Mega Fleets
WHI Some Makes
Ordering OEM EPC Nexpart – Volvo-Mack Also a locator for fleets?
Internally developed and maintained captive OEM and parts-manufacturer solutions tracked separately
Commercial Truck [continued]
Firm OE AM RP
Trade Model
Comments
Locator (Must be open to Independent Repair
Facilities)
FindItParts Yes
Instant Hits & Assisted
Assisted: Upload photo of part, expert help
PartsRiver Yes Instant Hits & ABP
APB: Broadcasts needed parts to its network
PartsVoice Yes Instant Hits
Truck Parts Solutions Yes Yes Yes
Dealer-to-Dealer
General ◦ OE Programs – most (not all) automakers
◦ Increasingly online ordering enabled
◦ Increasingly open
◦ New providers (Parex, PartsEye, …)
◦ Increasingly underpin Parts eCommerce
Types ◦ Urgent
Database
Real-time check
◦ Idle
Dealer-to-Dealer [continued]
Firm OE Locate Trade Model
Business Model
Fees Structure Comments
DealerMine All Makes N/A
Discount Bulk Orders
Closed (Dealer Only)
Commission
InterCity Services N/A
Order Transmission
Custom - Varies Custom solutions (e.g., Truckload buys to other dealers)
OEConnection Varies
Instant Matches
Order Management
Varies Subscription (mo. set fee)
ADP, R&R and DT DMS Integration – optional; GM, Ford, Suzuki programs
Parex Some Makes
Instant Matches
Order Management
Closed (Dealer Only)
Subscription (mo. set fee)
Jaguar and Land Rover
PartsEye Some Makes
Instant Matches
Locate Only Closed (Dealer Only)
Subscription (mo. set fee)
Subaru, Kia, Nissan automaker programs; Isuzu Truck
PartsVoice All Makes
Instant Matches
Order Transmission
Open Subscription (mo. set fee)
Toyota, VW automaker programs also all-makes
RearCounter All Makes
Instant Matches
Locate Only
WHI All Makes
Real-Time DMS Check
Order Management
Closed (Dlrs & IRFs) Mixed ADP, R&R and DT DMS integration – included
Dealer System Integration
DMS ◦ Use Case - Wholesale
◦ Capabilities (Vary by DMS)
Availability (Real-time & Daily)
MSRP & Customer Matrix Price
Open / Populate Parts Query, Quote or Invoice (part #, qty., price)
◦ ADP, R&R, DealerTrack, ASI, Karmak, … more coming
Parts Locators (for example, PV for Toyota’s TPAS wholesale portal)
Dealer System Integration [Cont.]
Shipping ◦ FedEx, UPS & USPS
◦ GPS / Routing – Your Delivery Fleet [Elite EXTRA]
Wholesale Buyer System ◦ Mechanical Repair Shop Systems
◦ Collision Repair Shop Systems
Payment Systems
eBay Integration (WHI, TradeMotion, PV/ADP, OEC, DST, PWS, …) ◦ Listings – comprehensive, accurate, illustrations
◦ Parts Orders
◦ Amazon Integration (TM)
Dealer System Integration [Cont.]
Delivery Planning & Routing ◦ eCommerce Buyer:
Boosts confidence order
received & processed
ETA online
◦ Dealer
Decreases on order status/
timing calls – boosting
dealer productivity
Customer retention & new
customer conquests up
Better Routes saves gas,
vehicle wear-and-tear, time
Improved productivity from GPS tracking
Automaker-Sponsored Programs GM (Accessories – Chrome Data)
Ford (FordParts.com – OEC)
Chrysler (Mopar eStore – Chrome Data)
Honda (eStore);
Nissan (eStore – TradeMotion)
Subaru (eStore – TradeMotion)
Volkswagen / Audi (eStore – TradeMotion)
Hyundai & Kia (Accessories – Insignia)
Kia (parts – TradeMotion)
Toyota Wholesale (TPAS portal – Infomedia)
More …
Partial
Future
Improvements (including catalog & VIN) and new players
Expanding Systems Integration
Importance of photos, illustrations and videos
Targeted pricing from automakers
Online chat/call
Questions & Answers
Send your contact info to [email protected] & I’ll
provide feedback and suggestions on parts e-commerce
planning for your dealership
Your Questions
Thank-You
For more: [email protected]
www.fellowesresearch.com
www.linkedin.com/in/tedfellowes
