Aftermarket Business World columnist Larry Silvey says the aftermarket has to come to terms with two disruptive channel trends: suppliers shipping directly to repair shops and same-day delivery. While these trends help shops fix cars faster, distributors will have to adjust to these difficult changes, according to his column, “Two trends could redefine the auto aftermarket.”
Silvey cites third-party logistics provider Cerasis, which says that e-commerce is driving technological change in the aftermarket and it will continue to disrupt traditional parts distribution. As suppliers improve their e-commerce tactics, they are improving their direct-selling capabilities, which eliminates the middle man, or distributor. Theoretically, this allows suppliers to lower their prices, which is attractive to shop owners.
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However, not all repair shops want to buy direct from suppliers. They fear that they may become overwhelmed by managing the procurement process with numerous suppliers. They don’t want to distract their focus from making safe repairs and satisfying vehicle owners.
That’s why they have relied on distributors to satisfy their product and marketing needs, to provide reliable delivery and technology tools to track inventory and support customers.
Same-day delivery also provides significant challenges to suppliers, unless they want to get deep into the distribution business. Click here to read the entire column.
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