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Automotive Parts Logistics - Market Entry Study for ASEAN Distribution Center
1. Spire Research and Consulting
Case study – Automotive Parts Logistics
Market entry study for ASEAN distribution center
Client: A leading global motorcycle manufacturer in Japan
Situation: The client intended to grow its aftermarket parts business in
ASEAN via its distribution centre within the region
Project objectives: To recommend the location for their ASEAN region
distribution center and to assess the feasibility of an aggressive ASEAN
growth strategy for specific aftermarket parts, accessories and lubricant
oil
Methodology:
Interviews with suppliers of non-original parts and lubricant oil
Interviews with trade associations, logistics industry experts and
government bodies in Thailand, Singapore and Indonesia
Engagement with 3 competing Logistics service providers (LSPs) to
secure proposals for the DC, analyzing these proposals and
recommending one LSP to our client
Interviews and information extraction from client’s local offices
Interviews with establishments in the non-original parts value chain
Analysis of secondary data on legal, regulatory and macro-
environmental issues
2. Case study – Automotive Parts Logistics (cont’d)
Market entry study for ASEAN distribution center
Report deliverables: A report addressing –
(A) Recommendation for DC location (Singapore vs Thailand)
(B) Recommendations for Logistics Service Providers
(C) Market entry study for parts, lube oil and accessories in ASEAN,
covering market size, forecast, pricing, competitor and channel analysis
Outcome: Our client used Spire’s report to make a Board decision to
locate its DC in Singapore. The DC is currently operational and has been
successful in generating cost reductions as well as market volume and
share growth.