Service-Parts eCommerce - U.S. Automotive Dealership Perspective


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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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Service-Parts eCommerce - U.S. Automotive Dealership Perspective

  1. 1. Parts e-Commerce Fellowes Research Group, Inc. 1
  2. 2. Agenda – Online Marketing/Sales   Introduction Markets ◦ ◦ ◦ ◦ ◦    Retail Wholesale – Collision Wholesale – Mechanical Truck Dealer-to-Dealer Systems Integration Future Q&A Not Covered • Dealer as Seller • Captive Solutions (OEM) Research – Call for Dealers
  3. 3. 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
  4. 4. Introduction [continued] Buyer Loyalty (Trading Bond – Importance to Buyer) Low Low (> 2 days) Buyer Urgency Medium (relative to (1 – 2 days) price) High (≤ 1 day) Medium High Marketplaces eStores Bidding Marketplace eStores eStores Wholesale Portals Bidding Locators Retail Portals Retail Portals Locators Wholesale Portals Direct Client (DMS / EPC) eStore Locators Retail Portals Locators Retail Portals Wholesale Portals Direct Client (DMS / EPC) Solution Clusters Collision (Body Shop) Mechanical (Fleet / IRF / All)
  5. 5. Introduction  Success Factors: ◦ ◦ ◦ ◦ ◦   [continued] 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 The days of no multiple eCommerce solutions advertising/marketing budget for Parts is dead Invest in success
  6. 6. Markets      Retail Wholesale Collision Wholesale Mechanical Truck Dealer-to-Dealer Survey
  7. 7. Retail Frost & Sullivan – July 2013 Aftersales – Retail for Parts & Accessories 2012 2020 $4.6 B $16 B As % of Total Sales 4% 10% Marketplaces Share 80% 75% eStore Share 20% 25% Annual Sales e-Retail
  8. 8. Retail  [continued] Solution Types Hot ◦ Marketplaces (eBay, Amazon, …)  e-Listing critical (WHI, TM, ADP/PV, OEC, DST, PW …)  Tools – what sells … at what price (Terapeak)  Commission eBay Deck ◦ 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, …)
  9. 9. 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
  10. 10. Retail Firm Amazon Makes & Types All ChromeData OE Some Makes DST eBay Motors All Solution Scope Catalog Parts MOTOR (OE) Accessories Epicor (AM) Parts OEM Cats Accessories Parts MOTOR (OE) All Parts MOTOR (OE) Accessories Epicor (AM) Insignia Group OE Accessories InterCity Services OE Parts TM & PWS Accessories Izmo OE Accessories OE Some Makes Parts OEConnection OE and AM Acc. Catalogs OE an AM Acc. Catalogs SBS (OE) Type Marketplace eListing Marketplace N/A Portal No Dealer eStores No JV with Insignia Marketplace N/A Refined OE & AM part fitment filtering via embedded parts catalog- content (Ford EPC content in OEDepot). e-listing – multiple choices. Dealer eStores No Accessory eStores complement full accessory sales solutions – wide coverage of AM accessory catalogs; visualization capability. Dealer eStores No Dealer eStores No Portal eBay PartsFirm OE Parts PWS Accessories Dealer eStores No Parts Website OE Parts MOTOR (OE) Accessories Dealer eStores eBay (pilot) RevolutionParts OE Parts MOTOR (OE) Accessories Dealer eStores No R&R OE Parts TradeMotion Accessories solution Dealer eStores No OE Some Makes Accessories OE Acc. Cats Dealer eStores No All Parts OEM EPCs & Accessories MOTOR Dealer eStores No SBS SimplePart 18 [continued] SkyParts Software Global Trademotion All Parts MOTOR (OE) Dealer eStores Parts OEM EPCs Dealer eStores OE Automaker programs: GM – accessories only; Chrysler – parts & accessories Custom solutions with MOTOR-based catalogs from others. Accessory eStores complement full accessory sales solutions ADP, R&R and DT DMS Integration – optional; OEM Dealer EPCs from SBS (Snap-on) & DealerParts U.S. eStore; MOTOR-based catalog supplemented; DMS integration. U.S. eStore; MOTOR-based catalog supplemented; hotspots, search & VIN; MSRP & Buyer Price; Avail – opt; DMS Integ. – opt; shipping calc Via Naked Lime unit of R&R Accessories (EASy) – Chrysler dealers – transitioning to Insignia U.S. & Canada; Google / Bing Shopping;eBay Commerce Network capable No WHI (Sophio platform) Part-Finder: fitment filtering via embedded application info. Listing – ACES (non-collision); PartsLink (collision) – Channel Advisor No OE Comments OE Parts MOTOR (OE) Accessories OEM Catalogs Parts MOTOR (OE) Dealer eStores Dealer eStores eStore w/ MOTOR-based catalog; also OEM EPCs for OEM programs (e.g., eBay Amazon (coming) Nissan); eBay listings included; Dealer Group share leader eBay eBay listings – included; MOTOR-based catalog
  11. 11. Retail Firm ADP - PartsVoice OEConnection Locator (Must be open to consumers) RearCounter WorldParts (Fast-Net) Autojini Channel Advisor Retail Marketing Services Dealer Online Mktng Reynolds & Reynolds Spork Marketing OE AM Trade Model Catalog [continued] Marketplace eListing Comments Yes Instant Match(es) eBay Toyota and VW corporate locators; all-makes also Yes Instant Match(es) eBay Some of OEC parts locators open to consumers; eBay listing option Yes Instant Match(es) Has an eStore with no catalog – not for established trading partners Instant Match(es) Yes Yes Skilled at Amazon and eBay listings and programs Yes Yes Yes TM Yes PW & TM Naked Lime – Parts & Accessories portal
  12. 12. Collision Wholesale  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 Litigation ◦ OEM Solutions (OEC, Infomedia) ◦ Insurer Solutions (PT, APU, Progi …) ◦ MSO Solutions (OPS – Service King; PCL – CARS)
  13. 13. Collision Wholesale  [continued] Coming: ◦ ◦ ◦ ◦ Pricing programs from nearly all automakers New approaches and solution providers Increasing role for “Estimatics” system providers Integration across networks
  14. 14. Collision Wholesale Firm New OE AM – Body AM – Mechanical RP Yes Yes Yes Insurer programs; estimate integration; locate, validate fitment then order; Dealers: ‘recovered’ parts and surplus; certification process; Free Quote; Order U.S.; Electronic Invoicing; full integration w/ CCC BMS; “Limited” DMS Integ. Quote; Order Two-way CES integration; App in Mitchell RepairCenter; Yes Yes Car-Part Yes Yes Canada; First Choice Auto Repair Systems EzPartOrder First Choice Infomedia Mitchell OEC OPS PartsCheck Live Quote; Order Yes Yes Yes Yes Microcat Auto PartsBridge - OE Pricing Incentives; body shop & dealer access to OEM EPC; auto-validation of part # fitment Order RepairCenter ToolStore – Integration with OEC, OPS, C-P, Izmo, LKQ, …; Free Quote; Order Some makes OE Pricing Incentives; auto-validation of part # fitment Directly embedded in Mitchell’s Repair Center Yes Yes Yes Yes Yes Yes Yes Yes Yes PartsTrader Yes Yes Yes Yes ProgiParts Yes Yes Yes Yes Trademotion Yes UParts WHI Comments Quote; Order APU (Solera) CCC True Trade Model [continued] 14/ 11 Yes Yes Bid; Quote; Order OPSTrax – Group Buying pricing; estimate integration (one-way); national; DMS integration; U.S. now, Canada 2014 Bid; Quote; Order Estimate integration (one direction), group buying discounts, Insurer audit capable, cloud-based, integrated i-Messaging, payment srvcs (opt.) Bid; Quote; Order Insurer programs; estimate integration (two way) Bid; Quote; Order Insurers – Intact, SSQauto [Canada-only for now] Order Yes Yes Large base of Dealer Groups Order Order Real-time integration w/ leading DMS types – availability, price, quote/invoice
  15. 15. Collision Wholesale Firm New OE AM – Body AM – Mechanical RP Real-time integration for RP inventories; results by part type, grade Instant Hits Database updated daily; often confirmed real-time Instant Hits Live integrated access to inventories Instant Hits Some OEC locators open to shops; parts inventory db – nightly update Sellers’ Replies Broadcasts needed parts to its network – used for hard-to-find parts Sellers’ Replies Request for bid can operate as a search to find who has the part Instant Hits Dealer parts inventory database – nightly update Instant Hits & Sellers’ Replies Some customers (insurance appraisers) locate RP & AM parts via ProgiParts Yes Yes CCC OEC Yes PartsCheck Live Yes Yes Yes Yes PartsTrader Yes Yes Yes Yes PartsVoice Yes ProgiParts Yes RearCounter Yes Locator Comments Instant Hits APU (PartsNetwork) (Must be open to Collision Repair Trade Model [continued] Facilities) Yes Yes Yes Instant Hits
  16. 16. Collision Wholesale Firm Advantage Data Dealer Solutions One Wholesale Marketing Services OEConnection OE PartsDirect PartsCheckLive Resource Automotive The Parts Connection Logistics Advantage D & L OPS PartsCheckLive Profession’l Parts Grp New OE AM – Body AM – Mechanic al [continued] Recycled Comments Yes Multi-National – Largest in U.S./Canada Yes Regional Yes North America Yes Regional - Southeast Yes Yes Yes Yes North America Yes North America; OEM programs to boost wholesale Yes Nearly national – 40k Shop database; contests & mailings Regional Regional (for delivery services) Yes Optional Optional Optional Optional
  17. 17. 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
  18. 18. 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
  19. 19. Mechanical Wholesale [continued] Firm Types/ Makes DST AM & OE All Epicor / IAP Infomedia InterCity Services OEConnection PartsCheckLive Parts Website SimplePart Trade Model Catalog Comments Ford eCounter & GM WIP; MOTOR-catalog based eStore; DMS Integration; Epicor AM catalog; shop systems integration Availability Real-time MOTOR (OE) Ordering Epicor (AM) AM All Ordering Epicor (AM) Epicor parts catalog; shop systems integration OE Some Ordering IFM (OE) Toyota TPAS (Toyota Parts & Service); OEM Dealer EPCs OE All Ordering TM, PWS Custom solutions (others’ MOTOR-based cats) OE Some Avail (real-time opt) SBS MORE (OE) Ordering; Quoting eBay ADP, R&R and DT DMS Integration – optional; OEM Dealer EPCs from SBS (Snap-on) All & All Ordering Quoting; None Group buying discounts, cloud-based, integrated iMessaging, payment srvcs (opt.) OE All Ordering MOTOR (OE) eStore with MOTOR-based catalog OE & AM All Ordering OEM EPCs & MOTOR U.S. & Canada; DMS integration optional; parts availability optional Trademotion OE All WHI Marketplace eListing 10/ 09 OE & AM All Ordering MOTOR (OE) Availability Real-time MOTOR (OE) Ordering WHI (AM) eBay Amazon (coming) eBay eStore w/ MOTOR-based catalog; large base of Dealer Groups; PartProtection (warranty); dealer website integration ADP, R&R and DT DMS integration – included; MOTOR-based catalog
  20. 20. Mechanical Wholesale [continued] Firm OEConnection Locator PartsVoice (Must be open to Independent Repair Facilities) RearCounter WHI Advantage Wholesale Marketing Services Logistics OE PartsDirect Resource Automotive Advantage D & L Types/ Makes Trade Model Marketplace eListing OE Some Instant Hits eBay Some of OEC parts locators open to shops OE Some Instant Hits eBay Integrates w/ some shop systems (Mitchell1) OE Instant Hits OE & AM All Instant Hits eBay Real-time part availability check in network Comments OE Multi-National – Largest in U.S./Canada OE Regional No. Am.; OEM programs OE OE & AM Regional
  21. 21. 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
  22. 22. Commercial Truck [continued] Firm ADP FleetConnect ASI (Automotive Systems, Inc.) OE RP Yes Some Makes Trade Model Catalog Ordering AM None Ordering FindItParts Yes None Ordering Yes Ordering Truck and heavy equipment None Direct DMS client – access granted by dealer PartsRiver WHI Isuzu OE & “will-fit” all-makes parts; wholesale eStore w/ directory at Isuzu corporate website None Ordering; Quoting; Bidding Dealer parts replenishment of fleets (WMRS & x-ref) Yes Karmak Yes ASI (OE) Comments Some Makes Yes ? Ordering Mega Fleets (WMRS & x-ref) Nexpart – Volvo-Mack OEM EPC Also a locator for fleets? Internally developed and maintained captive OEM and parts-manufacturer solutions tracked separately
  23. 23. Commercial Truck [continued] Firm OE AM RP Instant Hits & Assisted Yes Facilities) APB: Broadcasts needed parts to its network PartsRiver Yes Instant Hits & ABP PartsVoice Yes Instant Hits Truck Parts Solutions Yes (Must be open to Independent Repair Comments Assisted: Upload photo of part, expert help FindItParts Locator Trade Model Yes Yes
  24. 24. 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
  25. 25. Dealer-to-Dealer [continued] Firm DealerMine Locate Trade Model N/A Discount Bulk Orders N/A Order Transmission Varies Instant Matches Order Management Some Makes Instant Matches Order Management Some Makes Instant Matches Locate Only All Makes Instant Matches Order Transmission All Makes Instant Matches All Makes Real-Time DMS Check Order Management All Makes InterCity Services OEConnection Parex PartsEye PartsVoice RearCounter WHI Fees Structure Locate Only OE Business Model Closed (Dealer Only) Comments Commission Custom - Varies Custom solutions (e.g., Truckload buys to other dealers) Varies Subscription (mo. set fee) ADP, R&R and DT DMS Integration – optional; GM, Ford, Suzuki programs Closed (Dealer Only) Subscription (mo. set fee) Jaguar and Land Rover Closed (Dealer Only) Subscription (mo. set fee) Subaru, Kia, Nissan automaker programs; Isuzu Truck Open Subscription (mo. set fee) Toyota, VW automaker programs also allmakes Closed (Dlrs & IRFs) Mixed ADP, R&R and DT DMS integration – included
  26. 26. 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)
  27. 27. 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)
  28. 28. 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
  29. 29. Automaker-Sponsored Programs            GM (Accessories – Chrome Data) Ford ( – 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
  30. 30. Future      Improvements (including catalog & VIN) and new players Expanding Systems Integration Importance of photos, illustrations and videos Targeted pricing from automakers Online chat/call
  31. 31. Questions & Answers  Send your contact info to & I’ll provide feedback and suggestions on parts e-commerce planning for your dealership  Your Questions Thank-You For more: