In the current scenario, spare parts OEMs are facing lots of challenges due to the after production process management and storage of spare parts. For example, OEMs often face difficulties in getting actual demand of parts from the market and end-up storing excess stock. On the other hand, maintaining warehouse is a costly expenditure and so is the case with excess inventory.
Moreover, if an OEM chose to discontinue their parts production, customers are forced to move to another brand another or they move to any third party manufacturer. In both cases, OEM loses its valuable customer.
For OEMs, uncertainty in the market has become the norm. Despite investing heavily in new machinery and equipment they are still battling on all the fronts to ensure revenue growth. Poor spare parts management and distribution process have further complicated this scenario. Dipping profit margins and market competition of high level has forced OEMs to look for brighter opportunities.
Let’s have a look at what forward thinking OEMs are doing generate new revenue streams-
The shape of things to come: A Digitized Order
For OEMs in various sectors, selling spare parts and accessories and offering after sales services like field services, repair and installations are the major sources of revenue. In fact, the service part of the automotive industry is evolving fast into a pivotal part of the operational matrix. If some reports are to be believed, Indian spare parts market is predicted to grow 10X faster than the Europe and North American spare parts market.
However, spare parts demand doesn’t follow the same pattern as product demand and it’s really difficult to predict that demand through manual processing. An advanced tool like illustrated parts catalogue is needed for the same. To survive in this environment, OEMs need to be equipped with smart technology and a streamlined supply chain. This requires huge networking and inventory optimization to manage availability.
So, what constitutes a smart spare parts supply chain?
Today the market is filled with smart technologies to create an agile and efficient work environment. In the near future, you will see that devices near you are embedded with sensors, generating a huge amount of data, enhancing customer experience and improve decision making. OEMs will be able to continuously monitor, estimate and evaluate the real-time data to make the experience better. Apart from this, these business insights can be leveraged to spare parts supply chain for better results.
Analytics can help OEMs identify trends and insights from the market. Going through the marketing trends through digital software like electronic parts catalogue will help them to reduce the instances of overstocking and cut down cost. Through such digital software, OEM will be able to get exact forecasting and manage everything before the loss occurs.
Smarter Inventory Control and Demand Forecasting
The obstacles that currently have stopped the business of OEMs can be addressed by integrating the right technology at the right time. The electronic parts catalogue is the perfect fit for such a scenario and this smart scenario can manage spare parts effectively. With this software, OEMs would also benefit from real-time info about spare parts data in inventory. The truth is that world is moving so fast and cutting edge technology will be evolving continuously at a breakneck speed and the industry adopting a change in technology with time, will survive in this ecosystem. The silver lining is that emerging technology offers immense opportunities to boost productivity and save revenue and deliver best and satisfactory services to the customers.
So, these are the latest trends and technology in the automotive spare parts manufacturing industry. Intellinet has been working in this field from last 14 years. If you wish to know any details about any product of Intellinet, feel free to connect with team Intellinet at www.intellinetsystem.com