The automotive aftermarket is a significant sector of the U.S. economy employing approximately 5.5 million people. This industry encompasses all products and services purchased for light and heavy duty vehicles after the original sale including replacement parts, accessories, lubricants, appearance products, service repairs as well as the tools and equipment necessary to make the repair.
The Automotive Aftermarket industry has been experiencing some dramatic changes over the last few years. With consumers keeping their vehicles longer, “do-it-yourself” and “do-it-for-me” maintenance is more popular with sales on a steady rise. The competitive landscape is also changing as we see more mergers and consolidations take place.
All of this activity has a dramatic impact on the supply chain as companies adjust to these trends and take advantage of revenue generating opportunities and increased market share. Rapid improvements in supply chain processes, inventory velocity programs, cross-dock centers, labor and organization programs, demand planning and replenishment are all areas that will be improvement necessities. With mergers and consolidations comes the process of rethinking entire supply chains and massive strategies around closing DCs, retrofitting existing facilities and building new DCs.
The goals of achieving growth while managing costs and improving customer service must be balanced while taking into account:
- Dual market strategy serving both do-it-yourself (DIY) and do-it-for-me (DIFM) customers
- Mergers & Acquisitions
- Retail and Installer/Jobber Ratios
- SKU Proliferation
- Supply Chain Partnerships
- Multi-Echelon/Flow Paths (Inventory Velocity Programs & Flow/Cross-Dock Centers)
- Vertical Orientation
- Supplier Financial Health Concerns
- Buying Programs / Co-opetition
- Labor and Organization Programs
- Demand Planning and Replenishment
- Network Analysis
- PMO to drive resources around aggressive schedule timelines
Labor & IT systems migration/ integration
Read about Fortna's successful partnership with O'Reilly Automotive as they merge supply chains with CSK Automotive.
Learn how Fortna delivers supply chain results in the automotive aftermarket.