European truck aftersales 2030

Transcription

1 European truck aftersales 2030 Securing the most profitable business Study Munich, December 2015

2 Management summary Why react? Pressure points within the aftermarket environment for OEMs What to do? OEMs should do their homework and think innovative > Aftersales is the most profitable business throughout the different business models of OEMs, dealers and additional vehicle related services > And when it comes to customer expectations, uptime is the most relevant factor that needs to be translated into OEMs' offerings Considering the customers' real demand for low and transparent total cost of ownership (TCO) > The simpler it sounds, the tougher it gets Strong competition is building up along the complete aftersales distribution chain serving the different customer needs: Suppliers are gaining business relevance driven by forward integration and access to the customer interface Independent wholesalers are gaining power from consolidation, bundling purchasing power and setting up their own workshop concepts supported by private equity Independent workshops are becoming genuine competitors to OEMs due to their strong flexibility and fair value repairs > We identified a two-step approach to reach the next level in aftersales business: Five success factors along the distribution chain to set the baseline A must: (1) Fair value repair work, (2) Connected truck services, (3) Smart lifecycle approach, (4) Optimization of wholesale/delivery and (5) Customer demand oriented all-in-one services However, ensuring OEMs' market leadership will take more than just fulfilling the basics Disruptive business models of the future require innovative approaches to develop your service scenario 2030! 2

3 We interviewed >30 experts in leading positions across the complete distribution chain to confirm our hypotheses Selected interviewees and introductory quotes "The uptime principle applies not only to the truck, but to the complete truck/trailer combination. Total cost of ownership needs to be top-notch." Director of a leading logistics provider "Customers expect uptime. Everything else is secondary [ ] So far OEMs still focus on their own interests, often ignoring real customer requirements." CEO of an assistance provider "We include everything in our repair system with our premium or competence service partners [ ] All services are connected by telematics [ ] that allows for complete vehicle management [ ]." CEO of a trailer company "Truck producers need to convert to mobility providers and need to understand the requirements and framework conditions within the logistics business." Director of a leading logistics provider "Uptime principle and TCO are the main criteria for us [ ] We have cooperations, e.g. with a cooling system supplier, to allow our customers a shop-in-shop and one-stop solution." Product manager of a one-stop fullservice concept Customer-owned workshops are well specialized for the operators' needs if OEMs are not able to fulfill them [ ] Independent workshops are gaining business relevance." CEO of a commercial vehicle provider 3

4 Why react? Pressure points within the aftermarket environment for OEMs 4

5 Aftersales is a key profit driver across the OEM organization But profitable business is coming under pressure Aftersales profit pool For OEMs, aftersales is a major profit driver even though it represents only a small portion of revenues Aftersales New truck sales Parts business Revenues Gross margin ~25-50% ~0-5% Profits Service business Increasing focus on workshop absorption rate in dealer business case underlies the importance of aftersales in retail business Workshop absorption rate = Share of fixed costs that can be covered with gross profits from aftersales Fixed costs of dealership Gross profit from aftersales (workshop) >100% 0% Additional vehicle related services Additional profit pools based on innovative business models related to services, e.g. predictive maintenance, fleet management, etc. Selected companies demonstrate the importance of this: > Average growth rates of 20-30% in recent years > Profitability between 5-15% Typical OEM business Typical dealer business "Asset-light business models" 5

6 The current aftermarket environment is changing All players want to secure their piece of the profitable aftermarket Today's pressure points Margins of traditional players are increasingly coming under pressure Higher quality of vehicles, higher pressure in segment II and III, etc. Small workshops have a lack of efficiency advantages compared to large workshops Even higher margin pressure Suppliers are starting forward integration Gaining business relevance for end customers and workshops IAM wholesalers are increasingly gaining power Consolidation, bundling and own workshop concepts IAM workshops offer strong flexibility and fair value repairs They are becoming genuine competitors to OEMs Intermediaries are pushing into the market New business models are changing the whole aftermarket structure 6

7 The aftermarket business is set to change dramatically Disruptive business models require new ways of thinking for each player Future pressure points Maintenance and repair processes are changing dramatically through digitization Disruptive thinking required from all players Total transparency will put margins under ever greater pressure New concepts are crucial for all players Autonomous trucks offer very high safety standards Crash repair will decline, impacting parts & service sales and insurance products Service factories will emerge A maximum of efficiency and process automation will lead to the replacement of today's workshop landscape The owner of the data will steer the process and win the race However, data ownership is still unclear Customer interfaces of workshops are significantly reduced, workshops are only a fulfillment partner Value added needs to be identified 7

8 What to do? OEMs should do their homework and think innovative 8

9 A two-step approach is needed to move your aftersales business to the next level and thus boost your future profit! Two-step approach for OEMs I Do your homework 1 Fair value repair work > Offer lower-specification parts, e.g. via second brand, to address older vehicles and more pricesensitive customers > Segment targeted by OEMs themselves via remanufacturing original parts, by OES via (remanufacturing) identical parts and by third party players via copy parts 2 Connected truck service > Offer connected services to increase transport efficiency and value for customers and tap into new profit pools (e.g. vehicle management, load monitoring, driver mgmt., logistics mgmt., time/legal mgmt.) 3 Smart lifecycle approach > Understanding the market requirements to optimize the lifecycle of a truck demands intensive customer and market knowledge > Develop an appropriate pricing strategy to increase the truck's residual value Distribution chain (OE channel extract) OEM HQ OEM NSC OEM own retail/ authorized workshop 4 Optimization of wholesale/delivery > Forward integration into wholesale and workshops to defend/increase market shares, skim revenues/profits in supply chain and gain additional know-how about customer needs > Delivery performance is a key success factor for truck wholesalers, more important than price, as customers increasingly require a high number of deliveries to minimize downtimes 5 Customer demand oriented all-inone services > Service contracts along the entire lifecycle to maximize customer loyalty > Serve increasing customer demands for immediate parts availability and complete repairs for truck and trailer in a one-stop service 24/7 > Cooperation as an additional lever, e.g. with insurance companies Doing the basic things right will keep you on track to stay on a par with your competitors II think and act innovative! Same day delivery Prediction SMART MOBILITY Integrated solutions Online check-in REMOTE DIAGNOSTICS AUTOMATED TRUCK COST/TCO EFFICIENCY Real-time data Differentiated offering via multibrand Smart logistics Vehicle specialization and standardization ON-DEMAND SHARED MOBILITY Augmented reality Applications LAST MILE CONCEPT TELEMATICS SOLUTIONS Service factories Value based pricing SMART DATA DIGITIZATION Seamless customer journey Aftersales cooperation Player transparency e-tracking service DISRUPTION Fleet management Dynamic pricing COMMUNITY ONE-STOP SHOPPING Professionalization but doing more being innovative and breaking down borders will boost you to the next level! 9

10 I Do your homework Five success factors are identified along the distribution chain A must for each OEM to set the baseline Success factors in commercial vehicle aftermarket 1 Fair value repair work > Offer lower-specification parts, e.g. via second brand, to address older vehicles and more pricesensitive customers > Segment targeted by OEMs themselves via remanufacturing original parts, by OES via (remanufacturing) identical parts and by third party players via copy parts 2 Connected truck service > Offer connected services to increase transport efficiency and value for customers and tap into new profit pools (e.g. vehicle management, load monitoring, driver mgmt., logistics mgmt., time/legal mgmt.) 3 Smart lifecycle approach > Understanding the market requirements to optimize the lifecycle of a truck demands intensive customer and market knowledge > Develop an appropriate pricing strategy to increase the truck's residual value Distribution chain (OE channel extract) OEM HQ OEM NSC OEM own retail/ authorized workshop 4 Optimization of wholesale/delivery > Forward integration into wholesale and workshops to defend/increase market shares, skim revenues/profits in supply chain and gain additional know-how about customer needs > Delivery performance is a key success factor for truck wholesalers, more important than price, as customers increasingly require a high number of deliveries to minimize downtimes 5 Customer demand oriented all-inone services > Service contracts along the entire lifecycle to maximize customer loyalty > Serve increasing customer demands for immediate parts availability and complete repairs for truck and trailer in a one-stop service 24/7 > Cooperation as an additional lever, e.g. with insurance companies 10

11 II think and act innovative! Ensuring OEMs' market leadership will take more than just fulfilling the basics Innovative/disruptive approaches required Service scenario 2030 Prediction Integrated solutions REMOTE DIAGNOSTICS COST/TCO EFFICIENCY Differentiated offering via multibrand Smart logistics ON-DEMAND SHARED MOBILITY Augmented reality Applications LAST MILE CONCEPT TELEMATICS SOLUTIONS Service factories Value based pricing SMART DATA DIGITIZATION Seamless customer journey Aftersales cooperation Player transparency e-tracking service DISRUPTION Fleet management Dynamic pricing COMMUNITY Vehicle specialization and standardization ONE-STOP SHOPPING Professionalization Same day delivery SMART MOBILITY Online check-in AUTOMATED TRUCK Real-time data 11

12 II think and act innovative! Our vision of a service scenario

13 Roland Berger Our credentials 13

14 Roland Berger's Automotive Competence Center The leading consultancy for the automotive industry Roland Berger Automotive Competence Center We support all major players in the automotive industry OEMs, suppliers, service providers and financial investors We regularly carry out projects in all functional areas We are thought leaders, offering proven tools and solutions We continuously deliver top quality to our clients Over 2,000 projects across the globe, serving all major clients in the automotive industry 14

15 2012_01_19_Truck_Transport_2030_DRAFTv23.pptx 1 Our special expertise in the truck business and aftersales Proven in numerous projects and cutting-edge studies Our value proposition Truck business Aftersales On the road toward the autonomous truck Opportunities for OEMs and suppliers Service differentiation Delivering the service that customers really want Connected trucks The road to future profit pools Online automotive parts sales The rise of a new channel Transportation 2030 Impacting the commercial vehicle industry January 2012 Transportation 2030 Impacting the commercial vehicle industry STUDIE Werkstattportale in Deutschland Wer wird der "Google" für Werkstattleistungen? Workshop portals in Germany Who will be the "Google" of repair shop services? München, Februar 2013 Truck industry 2020 The future is global Tire aftermarket in Germany Players, business models and margins in the German market 15

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