Managing parts catalogs efficiently has been a constant challenge for OEMs. When a customer comes in for part replacement and the required part is not available in the inventory, it costs OEMs and dealers more than just money and downtime. Ordering a part at the very last minute costs OEMs additional charges, along with extra time.
There are several other challenges that can significantly cost OEMs more if not kept in check. One such problem is ineffective parts catalog management. Through this blog, let us understand the common mistakes that OEMs tend to make and the price they end up paying. We will also be discussing the solution for the same. This could eventually be a game changer for OEMs across the world in tackling the most common issues effortlessly.
Common Sources of Error in Parts Catalog Management
OEMs and dealers are separated via distant countries and states, this limits proper and timely communication. Mismanagement of data, important information, important updates, or even the announcement of a recall is common in this setting due to lack of a proper channel.
1. Keeping Data Up-to-Date
Information about parts or updates is inaccurate, outdated, or incomplete. Traditionally, information was circulated through documents, PDFs as well as printed catalogs. For a constantly developing industry, keeping up with the updated information through hardcopies, became a challenge.
2. Static Data
Data is stored away by different dealers and OEMs in multiple formats which was not efficient and required maintenance. For example, if a technician had to refer to any of the documents, flipping through thick manuals and scrolling through PDFs was the only option. This was inefficient and cost both time and money.
3. Rigid Data Models
The automotive sector goes through several changes in terms of updates, efficient engineering of parts and the rapid shift towards electric vehicles. Constant changes and new models being introduced frequently call for updates in catalogs. The traditional method of updating would require OEMs to physically introduce these changes into the manuals, get them printed, and circulate them to all their dealers.
4. Data Distribution
The lifecycle of data from OEMs to dealers has to go through several changes before it can be shared with dealers in languages that they understand.
5. Inconsistent Updates
Since data is managed manually and in different forms, such as Excel and PDFs, updating data becomes challenging and time consuming, often lacking a standard procedure.
3. Mismanagement of the Supply Chain
The most common mistakes made by OEMs involve placing the order for wrong parts or not placing enough orders of the right parts. In both cases, OEMs end up paying extra charges for importing and exporting goods depending on the country.
Strategies to Reduce Cost Using Parts Catalog Software
1. Minimizes Error
Eliminates the need for printing and distribution of updated or new pieces of information and reduces the chances of human errors.
2. Boosts Aftermarket Sales
Streamlined ordering processes, sales forecasting, and real-time data of spare parts availability help boost aftermarket sales.
3. Systematic Sales and Service Activity
Efficient inventory tracking and real time inventory management promote better sales and service activity in the aftermarket.
4. Centralized Information
It allows OEMs to use a single channel of communication across all departments. This helps in avoiding the chances of errors, duplicate information, and inconsistent information about updates in parts. All stakeholders can access the data whenever they need it.
5. Integration with All Systems
Often all OEMs and dealers have different software for different services, including enterprise resource planning (ERP) and customer relationship management software (CRM). Through spare parts catalog software, employees in different departments can easily access the centralized information.
For example, to find the last servicing performed on a model or spare part can be checked through the system by simply entering its unique identification number.
How to Choose the Right Parts Catalog Software?
You must consider several factors before investing in parts catalog software. Here are certain common factors for reference:
1. Budget
The most efficient way to start your search for compatible software according to your needs is by doing your research and analyzing the average cost of purchasing software. Since parts catalog software usually comes as a subscription model, you can set aside a budget for the same.
Most SaaS companies do not provide an upfront price, and the only efficient way to accomplish this is by getting a quote from the company customized to your business’s size.
2. Customization
Every OEM has different needs and different systems of operation when it comes to their inventory needs. It is essential to categorize this software and check the option to customize according to your business’s priorities.
This specific feature will likely be highlighted on the company’s website alongside the product list. Or you could simply book a demo and customize it to suit your needs and make a decision accordingly.
3. Scalability
Analyze the potential for growth that your business holds. Based on this information, choose a software that is both flexible and fits your budget when it comes to expansion. As scalability is a big change and can bring in several different challenges, make sure to assess the software’s capabilities to accommodate changes.
4. Interface Friendliness
Keep in mind that the software will be used on a daily basis by technicians, dealers as well as your employees. Consider analyzing the user-friendliness of the software including:
A. Easy accessibility through any device, including mobile phones and desktops
B. Easy search features that allow quick access to parts, documents or any data related to updates
C. Accessible resources including tutorials, guides and manuals for support whenever needed
D. Clean and easy to locate design that allows first time users to navigate their way through the software easily.
5. Integration Capabilities
Check the existing software that your dealers, employees, and team use to make sure that the parts catalog software you’re looking for is compatible with others. This factor can significantly cut down the time invested to record data twice, searching for information on multiple platforms, and correcting invalid information on multiple platforms.
Wrapping Up
An OEM needs to weigh their options carefully while choosing the right parts catalog management software due to the reasons we discussed above. There are several challenges that cost OEMs more during operations due to the absence of a centralized data management system.
When choosing an aftermarket software solution, it is essential to consider investing in the most efficient methods of working, as you are dealing directly with your customers. Ineffective aftermarket resources can damage customer retention and reputation in the aftermarket. Investing in upcoming technology and software solutions is a strategic investment as it provides a valuable Return On Investment (ROI) in the long run.
By integrating their manual procedures with efficient software solutions, OEMs can place themselves on top in the market, aim for sustainable growth, and build better customer relations.
