GENERATE REVENUES WITH AN EFFECTIVE PARTS WHOLESALE STRATEGY.
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1 GENERATE REVENUES WITH AN EFFECTIVE PARTS WHOLESALE STRATEGY. fueled by challenge. powering success. sm
2 1,500 dealer programs in 27 markets Parts wholesale has the potential to significantly contribute to the total parts turnover of your business. However, the market is as complex and fragmented as it is profitable. Traditional OEM service channels are threatened by longer service intervals, shorter ownership cycles, increased fleet penetration and decreasing customer loyalty. At the same time, OEM franchised dealers face stiff competition from a broad range of players such as independent parts players, service chains and independent repairers all of them intent on seizing their share of the market. In order to protect and develop their business in this lucrative area, OEMs need a proactive approach. This includes maximizing efficiency, new pricing strategies, targeted marketing, dealer staff coaching and innovative distribution approaches. MSXI has developed a 360 solution based on decades of international practical experience. Our solutions help OEMs regain their leadership and generate growth by strengthening traditional parts wholesale channels and opening up new value creating opportunities. EMBRACE NEW CUSTOMER AND DISTRIBUTION MODELS. ROI 4:1 MSXI is the partner of choice for the majority of major premium and volume manufacturers looking at successfully developing their parts wholesale business. Our forward thinking team of automotive experts combines deep industry experience, intelligent core technologies and best practices to champion new ideas and ways of doing business. We currently run parts wholesale programs in 27 markets with more than 1,500 dealers growing their parts sales through a network of 300,000 independent repairers. In this strategic paper we summarize key challenges and share our professional insights on how to add value to your company and achieve a competitive advantage. The automotive market is undergoing a fundamental change with aftersales representing one of the industry s most important profit drivers. Once a car drives from the showroom, the competition for aftersales revenue already begins. Although many customers continue to believe that OEMs and genuine parts offer them higher quality, OEMs are increasingly competing against mature independent parts suppliers, wholesalers, repair shop chains and independent repair shops. More than ever before, OEMs need to ensure their quality service reputation and brand image in the parts wholesale segment.
3 In addition to an innovative distribution model, OEMs need to ensure an exceptional customer experience within their parts wholesale business. Aftersales customers demand the same quality support they received when buying their vehicle. Strategies include: A data infrastructure to help manage vehicles, customers and retail processes A customer-centric, multichannel sales and service network with differentiated offers Sales and service staff with the most up-to-date technical understanding of vehicles and their features New retail landscapes with the latest technology 3D configurators, video screens, etc. COLLABORATE TO TRANSFORM YOUR PARTS WHOLESALE LANDSCAPE. The good news is that OEMs are well positioned to compete in the parts wholesale business because of a highly developed retail network, standard processes, and a strong brand image. The key will be to combine these traditional retail network strengths (e.g. best sales locations and original parts) with an innovative distrbution strategy that unlocks higher margins. This requires a change in mindset in order to cross industry boundaries and launch a mutually beneficial collaboration model which results in better service for customers. Particularly in the 3+ year old vehicle market, OEMs can extend their brand ecosystem by developing an independent channel parts business. In this scenario, dealer networks act as wholesalers of genuine parts to independent partners, thereby increasing parts sales volumes and re-engaging with their customers. MSXI dedicated parts specialists help develop and implement the necessary business market strategy processes, people and technologies to align, engage and mobilize all collaboration partners. Our pay for performance model delivers a guaranteed minimum ROI of 4:1.
4 THE MSXI 360 APPROACH TO PARTS WHOLESALE EXCELLENCE. The MSXI parts wholesale solution helps OEMs develop and implement a competitive parts offer for independent repairers. Our 360 approach takes eight crucial success factors into account: Bonus Incentive & Reward Market & Network Assessment Training & Coaching $ Campaign Management 360º Marketing & Communication Market Intelligence Contact Centre Sales Field Force 1. Market & Network Assessment: MSXI proven analytical methodology identifies Market Parts Trade opportunities for OEM franchised dealers offering GAPS and establishes a strategy to maximise sales opportunity and ROI. 2. Training & Coaching: Following the agreed strategy, MSXI trainers and coaches ensure all elements of the program (people process technology) are consistently implemented at dealer level.
5 3. Marketing & Communication: MSXI centralized marketing and communication services ensure that OEM loyalty programs and tactical initiatives are consistently delivered to all independent repairers. 4. Sales Field Force: MSXI Sales Field Force plays a critical role recruiting targeted independent repairers into the program, influencing their purchase habits, converting parts sales and maximizing OEM penetration. 5. Contact Centre: The MSXI Parts Trade Contact Centre maintains an ongoing contact with independent repairers facilitating inbound technical calls and outbound marketing and sales calls. This is a critical function to maintain IRs engaged in the programme and to sustain parts order volumes. 6. Market Intelligence: The management of all data coming from program dealers and IR performance, field and contact center activities and providing actionable information in terms of product price positioning, competition sales and promotional initiatives is very important to increase sales efficiency and maximize sales conversion. 7. Campaign Management: Implementing a dynamic parts pricing and promotional strategy based on accurate market intelligence and benchmarking is fundamental to maximize sales opportunities protecting profit margins. The MSXI Campaign Management team implements dynamic pricing and promotional strategy programs as agreed with the OEM and monitors their effectiveness and ROI. 8. Bonus Incentive & Reward: The MSXI team provides implementation and back office support to administer dealer and IR incentive and reward programs established with the OEM. Tracking and communication of individual dealer and IR performance versus target is also provided on a regular basis.
6 DISCOVER YOUR UNTAPPED PARTS POTENTIAL. Your parts wholesale business has the potential to contribute significant revenue as a part of your total parts turnover. The MSXI Parts Wholesale Excellence Solution assesses current business and develops a detailed action plan designed to help you meet certification standards and ensure sustainable success. We establish standard processes, tools and promotional activities aimed at improving market penetration, competitive pricing and distribution strategies. Our customer service strategy is based on excellence and is individually tailored according to your business objectives to set you apart from the competition. Customer Private Vehicle Life (Years) Seller Private First Owner (Finance/Lease) Large Fleet Small Fleet Small Commercial Short Term Regs Demo Cars Stock Cars Large Rentals Small Rentals OEM/Captive OEM/ OEM/ Service Market Share in % Car Park Management User/Chooser User/Chooser Test Repair Value per Vehicle OEM Company Cars OEM 20 OEM Employee Lease OEM 50 OEM Car Sharing OEM 0 0 Moment of Remarketing 1 st Owner 2 nd Owner 3 rd + Owner Our Parts Wholesale Excellence Solution is easily integrated into your existing service offers, according to your customer expectations. All solutions are quality controlled and certified for Parts Wholesales Excellence. To ensure your long-term success we also support you with the qualification of your dealership staff.
7 MSXI, A GLOBAL PARTNER WITH DEEP INDUSTRY EXPERIENCE. MSX International (MSXI) is a business process outsourcing company that provides technology based services to enterprises in more than 80 countries. MSXI s deep industry expertise combined with advanced data analytics and custom software solutions improve the performance of automotive dealership networks by increasing revenue, reducing cost and enhancing customer satisfaction. MSXI Solution Portfolio: RETAIL NETWORK SOLUTIONS TECHNOLOGY & STRATEGIC CONSULTANCY Developing successful retail strategies TECHNICAL SOLUTIONS Providing Technical Exper se WARRANTY SOLUTIONS Reducing warranty costs DEALER SOLUTIONS Driving dealer performance $ TRAINING SOLUTIONS Driving employee performance MSXI TECHNOLOGY BASE MSXI ANALYTICS SOLUTIONS TEAM UP WITH THE PARTS WHOLESALES EXPERTS. Our forward thinking team of automotive experts combines deep industry experience, intelligent core technologies, superior analytics and best practices to champion new ideas and ways of doing business. If you would like to know more about how we work and the results experienced by our existing customers, please contact Dirk Bott at dbott@msxi-euro.com. Dirk Bott Vice President RNS, Managing Director (DACH & Nordics) dbott@msxi-euro.com
8 TEAM UP WITH THE AUTOMOTIVE EXPERTS. MSXI Retail Network Solutions provide you with an individualized, scalable Connected Retail Strategy that integrates the sales and service experience, thereby securing optimal connectivity between the car, the customer and the retail experience. MSXI FACTS & FIGURES. in over 80 countries over 6,000 employees $ 500 million revenue If you want to benefit from our competent and innovative solutions, please contact us. MSX International 75 years of experience
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