To ensure their aftermarket success, the Original Equipment Manufacturers (OEMs) need to manage spare parts efficiently across their dealership network. This makes it essential for OEMs to manage an effective spare parts bill of materials that enables dealers to identify the right parts and order them quickly.
However, the same equipment is often marketed across countries. To adapt to the local differences, it's not only the product’s name that is updated; the BOM for a vehicle in one country might not be the same as that in another. This is because local regulations, climate, and supply chains vary so much that OEMs must customize parts lists for each region. It seems like a puzzle that can make or break customer trust and drain OEMs’ profits.
Through this article, let’s explore why these bills of materials differ across regions and the challenges OEMs face in managing them.
What is a Spare Parts Bill of Materials?
A Bill of Materials (BOM) is a detailed list of all the constituents required to manufacture a finished product. The Spare Parts BOM is a type of bill of materials that includes a detailed outline of every spare part needed to repair or maintain equipment, such as spark plugs, air filters, or exhaust pipes.
Unlike the manufacturing BOM, which lists parts to build a product, this one is all about keeping machines running after the sale. It’s the aftermarket’s lifeline that ensures dealers and mechanics have exactly what they need to get customers’ equipment back to work.
Now, one may think that a single BOM would cover a given model worldwide. After all, a car sold in Texas looks quite similar to the one sold in Tokyo. But that is not true. In a globalized market, OEMs sell the same vehicle or equipment in different regions, but the list of spare parts used is not always the same. Local emission regulations, safety codes, supply chain preferences, and even local climates vary so much across regions that the BOM for a vehicle in one country can look totally different from another. These differences are both a challenge and an opportunity for manufacturers to excel in the aftermarket.
Why Do Spare Parts BOMs Vary by Region?
It is important to understand why the same car model needs different parts in different countries. Despite being a bit peculiar, it’s a necessity. From strict emission laws like Euro 6 in Europe to India’s BS6 standards, regions demand unique parts like specialized exhausts or sensors to complement local fuels. Safety regulations may create disruptions, weather has a significant impact on machine engineering, and some governments might encourage local sourcing. Because of these variations, OEMs must modify BOMs to keep all vehicles, regardless of market, road-ready and compliant.
Let’s discuss these factors in detail below:
Emission Norms
Emission standards are the biggest reason BOMs vary. Every part of the world has its own environmental laws, and they are becoming increasingly severe. Euro 6 guidelines, for example, require high-tech exhaust systems such as Diesel Particulate Filters (DPFs) to reduce pollution. In India, BS6 regulations aim toward the same purpose but often require various engine modifications or sensors due to local fuel variances. In the United States, EPA Tier 4 regulations may require specific gasoline pumps or software adaptations.
So if an OEM plans to redesign a truck’s exhaust for Europe’s Euro 6 market, it will need a different DPF to work with BS6 fuel in India. These adjustments don’t just affect the vehicle but also descend into the spare parts BOM, requiring different engines, exhausts, or sensors for each region.
Safety Regulations
Safety regulations add another layer of difficulty for OEMs. Different countries require specific parts to meet their standards. For example:
- Lights: Europe insists on amber turn signals; however, in the United States, they can be red. To comply with local beam standards, headlight designs may change across regions.
- Mirrors and seatbelts: Some markets demand mirrors with blind-spot detection or seatbelts with specific pre-tensioners.
- Brakes: Anti-Lock Braking System (ABS) may require special pad materials to pass local tests.
These standards imply that a vehicle’s BOM has to include parts that follow local safety laws, even if the vehicle’s basic design stays the same.
Local Sourcing Preferences and Trade Restrictions
There is an economic perspective as well. Many countries push OEMs to source parts locally to support domestic businesses. Sometimes, OEMs have to replace a battery that they usually source from Germany with a local Brazilian one to avoid high import duties. The same is true for air filters and wiring, as they are sourced from different suppliers in different markets, even for the same car. Local sourcing requirements and trade limitations push manufacturers to change BOMs to strike a balance between cost, quality, and compliance.
Weather and Terrain
Finally, regional-specific environmental conditions add more challenges for the OEMs. Vehicles operating in extreme conditions require specialist components. In the scorching heat of the Middle East, cooling equipment such as larger radiators or high-capacity fans is essential. In dusty regions like rural Australia, air filters need extra filtration to protect engines. In rugged terrains, like parts of Africa, suspensions or undercarriage components might need support to handle rough roads. An OEM might struggle to understand why their standard air filter kept failing in a desert market, while all they need to do is add a region-specific filter to the BOM.
Challenges OEMs Face in Managing Bill of Materials
Managing spare parts globally is challenging for OEMs as a single mistake might disrupt operations. For a single model, OEMs have to manage hundreds of BOM variations that make things even more complicated for everyone. There are several other challenges OEMs encounter while managing BOMs, including:
Maintaining Multiple BOM Versions
A single car model may contain hundreds of BOMs, each specific to a region, its variant, or manufacturing year. Suppose an OEM handles different BOMs for tractors marketed in Europe, India, and the United States, each with a list of unique parts. Even the most well-organized teams might be stressed by this issue.
Mismatched Parts During Servicing
When parts catalogs or dealer management systems are outdated, dealers risk ordering the wrong parts. They may order a part like a sensor with a specification different than that for a local vehicle, or one which does not fit well. This results in a delayed repair, an unhappy customer, and a costly return. Such mismatches are all too common when BOMs aren’t region-specific or up-to-date.
Lack of Traceability of Updates
Parts become outdated quickly with the introduction of new regional laws, a switch among suppliers, or design updates. It is essential to keep track of these alterations, known as supersessions. Without appropriate version control, dealers may order a part that is no longer available or, worse, one that does not comply with current regulations.
Warranty Claim Conflicts
Using the incorrect part due to a BOM mix-up might result in warranty claims. For instance, a technician installs a non-compliant exhaust part on a Euro 6 vehicle. The repair may violate standards, and the warranty claim gets rejected. These blunders hit OEM's bottom line and also erode trust among dealers and customers.
Confusion Among Dealers
Dealers rely on a clear, accurate bill of materials to rapidly identify items. If a catalog groups all versions together or lacks region-specific information, dealers lose time looking for the right component. This not only confuses but also annoys them and leads to delays, which further affect the customer.
How Intelli Catalog Solves the Problem?
Intelli Catalog is an advanced electronic parts catalog software that transforms how OEMs list and manage their spare parts catalog. Developed to handle the chaos of global aftermarket operations, it makes BOM management smoother for OEMs and their stakeholders. Its intuitive features, like specified BOM lists and supersession tracking, eliminate the hassle dealerships go through during parts search and ordering. Here’s how it tackles the challenges OEMs face during BOM management:
Region-Specific BOM Lists
Intelli Catalog excels in providing parts catalogs adapted to the unique demands of each location. A dealer in Germany receives a list full of Euro 6-compliant parts, while one in India only sees BS6-approved components. More than being convenient, it prevents dealers from ordering parts that do not fit or that don't meet local regulations. This saves them from costly expenses involved with returns or delayed repairs. By making BOMs region-specific, this software makes global operations feel far less complicated.
VIN/Serial Number Search
Intelli Catalog's ability to link spare parts to a vehicle's unique VIN, chassis, or serial number makes things easier for dealers. This means there is no guessing involved because a technician receives a list of parts that match the exact vehicle they are servicing. Suppose a mechanic in Australia is repairing a car that requires a more durable suspension component.
The Intelli Catalog displays only the parts designed for that model's configuration when its VIN/serial number is entered. This prevents them from mistakenly ordering a standard part that may later lead to repair delays. It ensures the dealers always select the correct part, saving them time and ensuring customer satisfaction.
Version Tracking
Parts are ever evolving as new local regulations are introduced, changes in suppliers are made, or design is updated, which can make a part obsolete in an instant. These modifications, or 'supersessions,' are expertly managed by Intelli Catalog, which maintains an accurate record and links outdated part numbers to new ones.
Dealers no more need to waste time ordering the old part number since the system immediately highlights the new one. This type of version monitoring ensures that everything remains compliant regardless of how quickly things change and keeps repairs on track.
Access Control
Intelli Catalog ensures that everyone sees exactly what they need. Instead of receiving an assortment of parts from Europe or Japan, a Mexican dealer receives a parts catalog customized for their market. Only locally sourced components are pulled out by a Japanese expert. This streamlines the process and avoids confusion.
Using these region-specific catalogs enables dealers to reduce the time required for searching parts by half. By keeping things simple and relevant, Intelli Catalog allows service workers to concentrate on servicing vehicles rather than searching through irrelevant bills of materials.
Instant Updates
Parts catalogs must be up to date with regulations like Euro 6 or EPA Tier 4, which are continually evolving. Intelli Catalog updates spare parts lists in real time, so that the catalog displays new standards as soon as they are released. This prepares the dealers with updated component lists the same day a particular regulation changes and prevents any service interruptions. It also ensures that OEMs stay ahead of the curve and are always prepared for audits or inspections.
Simpler Compliance
By using regulatory databases or vehicle setup guidelines, the catalog displays only parts that adhere to regional norms. This overcomes the possibility of making a mistake since, for instance, in India, the catalog only displays parts that are BS6-compliant. This functionality specifically comes in handy when abrupt regulatory changes are made in a region. Intelli Catalog takes care of it automatically, so OEMs remain compliant without any effort. It also helps them avoid expensive penalties and saves time and effort.
Seamless Scalability
For firms working across continents, Intelli Catalog’s cloud-based setup is a lifeline. No matter how many products, models, or markets you're working with, it can manage thousands of BOMs. A heavy equipment company that was in charge of BOMs in 50 different countries reduced its administrative burden with Intelli Catalog while increasing dealer confidence. As you grow, Intelli Catalog keeps up with your needs by scaling up without slowing down, regardless of how many models you have or how many products you offer.
Intelli Catalog is a powerful tool for manufacturers because of its innovative features like customizable catalogs, revision tracking, quick updates, and robust compliance. It transforms monitoring BOMs into a strength for the OEMs and eliminates the hassle. Dealers receive the correct components more quickly, repairs are completed on time, and customers walk away satisfied. Additionally, maintaining compliance across marketplaces is made simple. Intelli Catalog is the solution that helps manufacturers succeed in a world where global aftermarket demands are only becoming more complex.
The Business Impact
Managing the bill of materials efficiently is as essential as fixing repairs for OEMs to transform their business. Tools like Intelli Catalog provide evident, measurable benefits that increase an OEM's productivity and profitability, and improve trust among dealers and customers. Here is how Intelli Catalog impacts businesses:
Reduced Wrong Parts Orders and Returns
Dealers consistently order the correct parts when your bill of materials is customized for each location. As a result, the system will be free of costly returns and confusion. By switching to Intelli Catalog, companies can cut their return rates as significantly as 40%. Just ensuring that an Indian shop receives BS6 components or a European dealer receives Euro 6 parts, Intelli Catalog helps OEMs to save thousands annually. Reduced mistakes also help them keep the budget tighter and keep the business operating smoothly.
Improved Service Efficiency and FTFR
Using catalogs linked to a car's VIN, dealers can find the exact parts they need without having to search. It also assists technicians to fix the repair right in the first visit itself, improving the dealer’s First-Time Fix Rate (FTFR). Even for heavy equipment, dealers using Intelli Catalog can reduce service times by a fifth. Customers who rely on their equipment on a daily basis can also resume work more quickly. In a competitive environment, expediting repairs like this fosters customer loyalty and brings in repeat business.
Resolute Compliance and Audit-Ready
Regulations such as Euro 6 or BS6 can undergo rapid alterations, and compliance is mandatory. Intelli Catalog's real-time updates and regulatory abilities keep the bill of materials up to date with the latest standards. By being prepared, OEMs can avoid penalties and focus on business growth rather than rushing to resolve compliance issues.
Strengthened Dealer Confidence
Dealers benefit greatly from having catalogs that are reliable and easy to understand. Introducing Intelli Catalog helps OEMs to significantly improve satisfaction among their dealership network. Dealers no longer have to struggle with outdated or confusing parts listings. Dealers provide better service when they are able to operate with confidence, and customers walk out of service centers satisfied. This trust develops into loyalty, which brings in repeat business.
Elevated Competitive Edge
An OEM's edge in the aftermarket is its brand's efficiency and reliability. Manufacturers are able to provide quicker and more precise service using Intelli Catalog, improving their reputation in a competitive market. When customers' equipment gets back in action faster, they tend to keep choosing the brand repeatedly. Such a differentiation enables manufacturers to stand out and retain customers in a crowded marketplace.
Wrapping Up
In the manufacturing sector, whether an OEM has a local business or manages global supply chains, the spare parts bill of materials remains the foundation of its aftermarket success. Managing BOMs is more difficult than ever in modern times due to the increasing strictness of green laws, safety regulations, and the need for regional solutions.
This is why a parts catalog software like Intelli Catalog becomes so important for manufacturers. Intelli Catalog provides OEMs with the confidence they need to manage the complexities involved with region-specific parts listings through its VIN-based parts search, instant updates, and compliance features. This not only reduces errors and speeds up repairs, but also brings repeat business for the brands, all while abiding by the regulations.
To know more about how Intelli Catalog can help your business or request a free demo, connect with our experts today.
