By Michael V. Freeze
CHICAGO, IL — Yesterday, the Aftermarket eForum was in its second day in the Windy City. The full day was full of panels, vendor displays and speakers who gave their insights on the world of “e” in the industry.
George Thanasides, co-founder of G2 Solutions, a firm specializing in consulting services for distributors and software development companies, started the slew of morning presentations with a hard look at the world of aftermarket IT.
Thanasides commented on the benchmarks that the industry set back in the 1980s with information technology, but had grim commentary for the future if the aftermarket retained its status quo.
“The landscape has changed,” mentioned Thanasides. “But (the benchmarks) have stayed the same.”
Thanasides reminded the audience that in 2005, we still have the same core packages, limited enhancements and adoption, and proprietary systems when it comes to the state of ERP software for developers.
Despite the pessimistic review, Thanasides offered suggestions for improvement such as capital infusion from a strategic buyer and viable partnership between existing software providers. In addition, he closed his session with words to heed.
“All of us are living by the technology ability of the weakest link in our supply chain,” said Thanasides. “It’s time for the software providers and distributors to think outside the box and collaborate.”
The next speaker, MTU-Detroit Diesel’s director of parts sales and logistics John Ruck, told “A Product Information Management Success Story” about how his company increased its profit, decreased costs and improved efficiency and overall dealer and customer satisfaction through, what Detroit Diesel calls, a “holistic approach” to product information management (PIM).
Ruck mentioned in his session about being “stuck in the old days” in terms of catalog management and publishing.
“Even IBM told us that they couldn’t support one of our business systems,” said Ruck. “Talk about being in the 21st century, we still had to get to the 20th century.”
Through Detroit Diesel’s new philosophy, the company increased sales revenue and profitability and generated greater productivity by “doing more with less.”
“Our holistic approach to PIM allows us to accept input from and publish to virtually any standard or proprietary format for any of its global markets,” said Ruck.
The first panel of Aftermarket eForum consisted of a group of Web marketing veterans. Dan Jondron, president of Advanced Digital Strategies moderated the “eMarketing Panel” to highlight the new strategies in Web marketing. Speaking first was Lund International’s Paula Sliefert, the accessories manufacturer’s director of marketing. Sliefert explained, in detail, one of the aspects in the thought process that is involved when constructing a business Web page.
“The tips for success are to take advantage of all cross-sell opportunities,” said Sliefert. “(When initially building a Web site) there are no right and wrong answers.”
The next panel member, head of Google Automotive, Denise Chudy stressed the importance of reaching the correct target audience when marketing over the Internet and wasted no time striking a chord with crowd.
“I must admit, I still don’t know what a jobber is, I don’t understand supply chain management issues, but I do know that last year 13 million auto parts were sold online,” said Chudy. “And on Google, we had 30 million searches for auto parts and accessories.”
John Zinn, vice president of aftermarket content for media provider TEN Magazines, finished the panel by informing the audience about the basics (and dangers) of banner advertisements.
“General distribution banners should be the branding arm of a larger, more targeted objective,” said Zinn. “It can be a long journey. The learning curve can be huge if you’re not careful in planning.”
The last speech before the lunch break was given by Jon Rubich, vice president of marketing services & category management for United Components, Inc. Rubich explained how automotive data drives product planning, manufacturing and sales.
“Nobody likes surprises,” proclaimed Rubich during the beginning of his animated case study named “Data Driven Inventory Efficiency.”
Rubich encouraged the attendees to think outside the box when it comes to technology in the aftermarket industry.
“We need to challenge ourselves to change the dynamics on the way we do business today,” said Rubich. “If you stay where you are, you’ll get run over.”
Rubich used the example of collaboration concerning the filter market, stating that with the help of industry associations, CARQUEST, Automotive Aftermarket Alliance and NAPA have joined the existing data suppliers in supplying its commercial filter information.
“Not only am I talking about collaboration,” said Rubich. “Now, the rubber is hitting the road. We will be looking forward to that in the next few months.”
To drive the point home about not liking surprises even further, at the end of his speech, Rubich received a “surprise call” from his wife on his cell phone about the water pump for their swimming pool not working. A seemingly frustrated Rubich moaned his way through her explanation of how much it would cost of installing a new pump. After the conversation, Rubich ended the call and said, “You see, nobody likes surprises.”
During the afternoon break, attendees had a chance to meet with many of the technology vendors and solution providers at the Vendor Trade Show. The show was presented by Automotive Aftermarket Industry Association (AAIA), Motor & Equipment Manufacturers Association (MEMA), Specialty Equipment Market Association (SEMA), AIA Canada and Automotive Warehouse Distributors Association (AWDA).
The second day of the Aftermarket eForum also featured three “Breakout Sessions” which Aftermarketnews.com will recap on its Friday edition.
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