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

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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

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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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