Online sourcing of service parts for retail purchase or wholesale trade (in either the collision repair or the maintenance/mechanical-repair sectors) is both essential to financial health of U.S. and Canadian automotive dealerships and confusing (a half-dozen different types of solutions, over 25 suppliers of solutions and several distinct supporting services). This presentation given at the Digital Dealer Conference 15 begins to place dealer options in a structured framework. Finally, this presentation makes clear that the traditional dealer IT decision-making process of select-the-best-solution is wrong ... that dealerships should view each solution as a "sales channel" and increasingly dealers will find that they are best served by selecting multiple solutions even for a single market segment.

1. Parts e-Commerce
Fellowes Research Group, Inc.
www.linkedin.com/in/tedfellowes
ted@fellowesresearch.com
1

2. Agenda – Online Marketing/Sales


Introduction
Markets
◦
◦
◦
◦
◦



Retail
Wholesale – Collision
Wholesale – Mechanical
Truck
Dealer-to-Dealer
Systems Integration
Future
Q&A
Not Covered
• Dealer as Seller
• Captive Solutions (OEM)
Research – Call for Dealers
ted@fellowesresearch.com

3. Introduction





Markets are Dissimilar (but some Interaction)
Half-Dozen Solution Types (partially aligned with markets)
Many Solution Providers – Even More Solutions
Complexity: Related Services & System Integration
Marketing & Advertising $$$ required by Parts – each
eCommerce solution is a sales channel

4. Introduction
[continued]
Buyer Loyalty
(Trading Bond – Importance to Buyer)
Low
Low
(> 2 days)
Buyer
Urgency Medium
(relative to (1 – 2 days)
price)
High
(≤ 1 day)
Medium
High
Marketplaces
eStores
Bidding
Marketplace
eStores
eStores
Wholesale Portals
Bidding
Locators
Retail Portals
Retail Portals
Locators
Wholesale Portals
Direct Client (DMS / EPC)
eStore
Locators
Retail Portals
Locators
Retail Portals
Wholesale Portals
Direct Client (DMS / EPC)
Solution Clusters
Collision (Body Shop)
Mechanical (Fleet / IRF / All)

5. Introduction

Success Factors:
◦
◦
◦
◦
◦


[continued]
Price Advantages (for Buyer)
Systems Integration (B2B; Buyer-side primary; Seller-side secondary)
Dedicated resources – Seller
Boosts communications (buyers still need assistance / confirmation)
Other buyer conveniences (24 x 7 ordering; digital invoices; photos …)
No one right solution – successful dealers operate
The days of no
multiple eCommerce solutions
advertising/marketing
budget for Parts is dead
Invest in success

6. Markets





Retail
Wholesale Collision
Wholesale Mechanical
Truck
Dealer-to-Dealer
Survey

7. Retail
Frost & Sullivan – July 2013
Aftersales – Retail for Parts & Accessories
2012
2020
$4.6 B
$16 B
As % of Total Sales
4%
10%
Marketplaces Share
80%
75%
eStore Share
20%
25%
Annual Sales e-Retail

8. Retail

[continued]
Solution Types
Hot
◦ Marketplaces (eBay, Amazon, …)
 e-Listing critical (WHI, TM, ADP/PV, OEC, DST, PW …)
 Tools – what sells … at what price (Terapeak)
 Commission
eBay
Deck
◦ eStores




Catalogs (enhanced MOTOR, Dealer EPC)
Features /Capabilities (shipping integration/calculators, taxes, payment …)
Two Use-Cases: Aggressive Price & New Brand; Store Brand
Online Marketing Services




url; 2-4-1
SEO/SEM
Website Design / Customization
Promotions (coupons, …)

9. Retail

[continued]
Solution Types [continued]
◦ Portals
 Nearly all are Automaker Captive
 Vary widely on costs, quality, performance, web presence …
 Make – Parts Manager Meetings: Discuss

Coming:
◦ More Photos & Illustrations – Videos
◦ More/Better eListings – eBay & Amazon
◦ Improved Parts Specification – Cataloging, VIN

10. Retail
Firm
Amazon
Makes &
Types
All
ChromeData
OE Some
Makes
DST
eBay Motors
All
Solution
Scope
Catalog
Parts
MOTOR (OE)
Accessories Epicor (AM)
Parts
OEM Cats
Accessories
Parts
MOTOR (OE)
All
Parts
MOTOR (OE)
Accessories Epicor (AM)
Insignia Group
OE
Accessories
InterCity Services
OE
Parts
TM & PWS
Accessories
Izmo
OE
Accessories
OE Some
Makes
Parts
OEConnection
OE and AM
Acc. Catalogs
OE an AM Acc.
Catalogs
SBS (OE)
Type
Marketplace
eListing
Marketplace
N/A
Portal
No
Dealer eStores
No
JV with Insignia
Marketplace
N/A
Refined OE & AM part fitment filtering via embedded parts catalog- content
(Ford EPC content in OEDepot). e-listing – multiple choices.
Dealer eStores
No
Accessory eStores complement full accessory sales solutions – wide
coverage of AM accessory catalogs; visualization capability.
Dealer eStores
No
Dealer eStores
No
Portal
eBay
PartsFirm
OE
Parts
PWS
Accessories
Dealer eStores
No
Parts Website
OE
Parts
MOTOR (OE)
Accessories
Dealer eStores
eBay (pilot)
RevolutionParts
OE
Parts
MOTOR (OE)
Accessories
Dealer eStores
No
R&R
OE
Parts
TradeMotion
Accessories solution
Dealer eStores
No
OE Some
Makes
Accessories OE Acc. Cats
Dealer eStores
No
All
Parts
OEM EPCs &
Accessories MOTOR
Dealer eStores
No
SBS
SimplePart
18
[continued]
SkyParts
Software Global
Trademotion
All
Parts
MOTOR (OE)
Dealer eStores
Parts
OEM EPCs
Dealer eStores
OE
Automaker programs: GM – accessories only; Chrysler – parts & accessories
Custom solutions with MOTOR-based catalogs from others.
Accessory eStores complement full accessory sales solutions
ADP, R&R and DT DMS Integration – optional;
OEM Dealer EPCs from SBS (Snap-on)
OEMParts.net & DealerParts
U.S. eStore; MOTOR-based catalog supplemented; DMS integration.
U.S. eStore; MOTOR-based catalog supplemented; hotspots, search & VIN;
MSRP & Buyer Price; Avail – opt; DMS Integ. – opt; shipping calc
Via Naked Lime unit of R&R
Accessories (EASy) – Chrysler dealers – transitioning to Insignia
U.S. & Canada; Google / Bing Shopping;eBay Commerce Network capable
No
WHI (Sophio platform)
Part-Finder: fitment filtering via embedded application info. Listing – ACES
(non-collision); PartsLink (collision) – Channel Advisor
No
OE
Comments
OE
Parts
MOTOR (OE)
Accessories OEM Catalogs
Parts
MOTOR (OE)
Dealer eStores
Dealer eStores
eStore w/ MOTOR-based catalog; also OEM EPCs for OEM programs (e.g.,
eBay
Amazon (coming) Nissan); eBay listings included; Dealer Group share leader
eBay
eBay listings – included; MOTOR-based catalog

11. Retail
Firm
ADP - PartsVoice
OEConnection
Locator
(Must be open to
consumers)
RearCounter
WorldParts
(Fast-Net)
Autojini
Channel Advisor
Retail
Marketing
Services
Dealer Online
Mktng
Reynolds &
Reynolds
Spork Marketing
OE
AM
Trade
Model
Catalog
[continued]
Marketplace
eListing
Comments
Yes
Instant
Match(es)
eBay
Toyota and VW corporate locators; all-makes
also
Yes
Instant
Match(es)
eBay
Some of OEC parts locators open to
consumers; eBay listing option
Yes
Instant
Match(es)
Has an eStore with no catalog – not for
established trading partners
Instant
Match(es)
Yes
Yes
Skilled at Amazon and eBay listings and
programs
Yes
Yes
Yes
TM
Yes
PW & TM
Naked Lime – Parts & Accessories portal

12. Collision Wholesale

Key:
◦ Dealers forced into multiple programs ($, productivity)
◦ Wholesale Marketing Services

800-lb Gorillas
◦ Automaker: Pricing Programs (“Price Matching”) > 90% UIO
◦ Buyer-Centric Solutions: Parts Procurement (State Farm, Intact)

Clash of the Networks
Litigation
◦ OEM Solutions (OEC, Infomedia)
◦ Insurer Solutions (PT, APU, Progi …)
◦ MSO Solutions (OPS – Service King; PCL – CARS)

13. Collision Wholesale

[continued]
Coming:
◦
◦
◦
◦
Pricing programs from nearly all automakers
New approaches and solution providers
Increasing role for “Estimatics” system providers
Integration across networks

14. Collision Wholesale
Firm
New OE
AM –
Body
AM –
Mechanical
RP
Yes
Yes
Yes
Insurer programs; estimate integration; locate, validate fitment then order;
Dealers: ‘recovered’ parts and surplus; certification process; Free
Quote; Order
U.S.; Electronic Invoicing; full integration w/ CCC BMS; “Limited” DMS Integ.
Quote; Order
Two-way CES integration; App in Mitchell RepairCenter;
Yes
Yes
Car-Part
Yes
Yes
Canada; First Choice Auto Repair Systems EzPartOrder
First Choice
Infomedia
Mitchell
OEC
OPS
PartsCheck
Live
Quote; Order
Yes
Yes
Yes
Yes
Microcat Auto PartsBridge - OE Pricing Incentives; body shop & dealer access to
OEM EPC; auto-validation of part # fitment
Order
RepairCenter ToolStore – Integration with OEC, OPS, C-P, Izmo, LKQ, …; Free
Quote; Order
Some
makes
OE Pricing Incentives; auto-validation of part # fitment
Directly embedded in Mitchell’s Repair Center
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
PartsTrader
Yes
Yes
Yes
Yes
ProgiParts
Yes
Yes
Yes
Yes
Trademotion
Yes
UParts
WHI
Comments
Quote; Order
APU (Solera)
CCC True
Trade
Model
[continued]
14/
11
Yes
Yes
Bid; Quote; Order OPSTrax – Group Buying pricing; estimate integration (one-way); national; DMS
integration; U.S. now, Canada 2014
Bid; Quote; Order Estimate integration (one direction), group buying discounts, Insurer audit
capable, cloud-based, integrated i-Messaging, payment srvcs (opt.)
Bid; Quote; Order Insurer programs; estimate integration (two way)
Bid; Quote; Order Insurers – Intact, SSQauto [Canada-only for now]
Order
Yes
Yes
Large base of Dealer Groups
Order
Order
Real-time integration w/ leading DMS types – availability, price, quote/invoice

15. Collision Wholesale
Firm
New OE
AM –
Body
AM –
Mechanical
RP
Real-time integration for RP inventories;
results by part type, grade
Instant Hits
Database updated daily; often confirmed
real-time
Instant Hits
Live integrated access to inventories
Instant Hits
Some OEC locators open to shops; parts
inventory db – nightly update
Sellers’ Replies
Broadcasts needed parts to its network –
used for hard-to-find parts
Sellers’ Replies
Request for bid can operate as a search to
find who has the part
Instant Hits
Dealer parts inventory database – nightly
update
Instant Hits &
Sellers’ Replies
Some customers (insurance appraisers)
locate RP & AM parts via ProgiParts
Yes
Car-Part.com
Yes
CCC
OEC
Yes
PartsCheck Live
Yes
Yes
Yes
Yes
PartsTrader
Yes
Yes
Yes
Yes
PartsVoice
Yes
ProgiParts
Yes
RearCounter
Yes
Locator
Comments
Instant Hits
APU
(PartsNetwork)
(Must be open to
Collision Repair
Trade
Model
[continued]
Facilities)
Yes
Yes
Yes
Instant Hits

16. Collision Wholesale
Firm
Advantage Data
Dealer Solutions One
Wholesale
Marketing
Services
OEConnection
OE PartsDirect
PartsCheckLive
Resource Automotive
The Parts Connection
Logistics
Advantage D & L
OPS
PartsCheckLive
Profession’l Parts Grp
New
OE
AM –
Body
AM –
Mechanic
al
[continued]
Recycled
Comments
Yes
Multi-National – Largest in
U.S./Canada
Yes
Regional
Yes
North America
Yes
Regional - Southeast
Yes
Yes
Yes
Yes
North America
Yes
North America; OEM programs to
boost wholesale
Yes
Nearly national – 40k Shop database;
contests & mailings
Regional
Regional (for delivery services)
Yes
Optional Optional
Optional
Optional

17. Mechanical Wholesale

Introduction
◦ Buyers (IRFs, Fleets, …) > 200,000
◦ Order average only a few parts that must be delivered ASAP
◦ OE Parts are only 20 to 25% ($ weighted)

Key:
◦ Availability and/or delivery status – automatically, immediately
◦ Parts Catalogs (OE: MOTOR - improved, Dealer EPC)

Types:
◦
◦
◦
◦
Portal
Enterprise eStore
Direct (DMS/EPC)
eStore
Mechanical OE eCommerce developing
less quickly than collision

18. Mechanical Wholesale [continued]

Coming:
◦
◦
◦
◦
Buyer-centric parts sourcing (initially as a niche)
Improved parts catalogs and VIN info
Growing integration
Additional solutions and solution providers

19. Mechanical Wholesale [continued]
Firm
Types/
Makes
DST
AM & OE All
Epicor / IAP
Infomedia
InterCity Services
OEConnection
PartsCheckLive
Parts Website
SimplePart
Trade
Model
Catalog
Comments
Ford eCounter & GM WIP; MOTOR-catalog based
eStore; DMS Integration; Epicor AM catalog; shop
systems integration
Availability Real-time MOTOR (OE)
Ordering
Epicor (AM)
AM All
Ordering
Epicor (AM)
Epicor parts catalog; shop systems integration
OE Some
Ordering
IFM (OE)
Toyota TPAS (Toyota Parts & Service); OEM Dealer
EPCs
OE All
Ordering
TM, PWS
Custom solutions (others’ MOTOR-based cats)
OE Some
Avail (real-time opt)
SBS MORE (OE)
Ordering; Quoting
eBay
ADP, R&R and DT DMS Integration – optional;
OEM Dealer EPCs from SBS (Snap-on)
All & All
Ordering
Quoting;
None
Group buying discounts, cloud-based, integrated iMessaging, payment srvcs (opt.)
OE All
Ordering
MOTOR (OE)
eStore with MOTOR-based catalog
OE & AM All
Ordering
OEM EPCs &
MOTOR
U.S. & Canada; DMS integration optional; parts
availability optional
Trademotion
OE All
WHI
Marketplace
eListing
10/
09
OE & AM All
Ordering
MOTOR (OE)
Availability Real-time MOTOR (OE)
Ordering
WHI (AM)
eBay
Amazon (coming)
eBay
eStore w/ MOTOR-based catalog; large base of
Dealer Groups; PartProtection (warranty); dealer
website integration
ADP, R&R and DT DMS integration – included;
MOTOR-based catalog

20. Mechanical Wholesale [continued]
Firm
OEConnection
Locator
PartsVoice
(Must be open to
Independent Repair
Facilities)
RearCounter
WHI
Advantage
Wholesale
Marketing
Services
Logistics
OE PartsDirect
Resource
Automotive
Advantage D & L
Types/ Makes
Trade
Model
Marketplace
eListing
OE Some
Instant Hits
eBay
Some of OEC parts locators
open to shops
OE Some
Instant Hits
eBay
Integrates w/ some shop
systems (Mitchell1)
OE
Instant Hits
OE & AM All
Instant Hits
eBay
Real-time part availability check
in network
Comments
OE
Multi-National – Largest in
U.S./Canada
OE
Regional
No. Am.; OEM programs
OE
OE & AM
Regional

21. Commercial Truck

Key
◦ Very different from Auto
◦ OEM Dealer EPC vs. VRMS and Cross-Reference
◦ Buyers are primarily Fleets (secondarily, IRFs)

Solution Types
◦ Volvo-Mack – Portal: Nexpart (WHI)
◦ Isuzu – Enterprise eStore: ASI
◦ Direct DMS Application – Karmak (& ADP FleetConnect)

Coming
◦ Limited choices – Expanding

22. Commercial Truck [continued]
Firm
ADP FleetConnect
ASI
(Automotive Systems, Inc.)
OE
RP
Yes
Some
Makes
Trade
Model
Catalog
Ordering
AM
None
Ordering
FindItParts
Yes
None
Ordering
Yes
Ordering
Truck and heavy equipment
None
Direct DMS client – access granted by dealer
PartsRiver
WHI
Isuzu OE & “will-fit” all-makes parts; wholesale
eStore w/ directory at Isuzu corporate website
None
Ordering;
Quoting;
Bidding
Dealer parts replenishment of fleets
(WMRS &
x-ref)
Yes
Karmak
Yes
ASI (OE)
Comments
Some
Makes
Yes
?
Ordering
Mega Fleets
(WMRS &
x-ref)
Nexpart – Volvo-Mack
OEM EPC Also a locator for fleets?
Internally developed and maintained captive OEM and parts-manufacturer solutions tracked separately

23. Commercial Truck [continued]
Firm
OE
AM
RP
Instant Hits &
Assisted
Yes
Facilities)
APB: Broadcasts needed parts to its network
PartsRiver
Yes
Instant Hits & ABP
PartsVoice
Yes
Instant Hits
Truck Parts
Solutions
Yes
(Must be open to
Independent Repair
Comments
Assisted: Upload photo of part, expert help
FindItParts
Locator
Trade
Model
Yes
Yes

24. Dealer-to-Dealer

General
◦
◦
◦
◦
◦

OE Programs – most (not all) automakers
Increasingly online ordering enabled
Increasingly open
New providers (Parex, PartsEye, …)
Increasingly underpin Parts eCommerce
Types
◦ Urgent
 Database
 Real-time check
◦ Idle

25. Dealer-to-Dealer [continued]
Firm
DealerMine
Locate
Trade
Model
N/A
Discount
Bulk Orders
N/A
Order
Transmission
Varies
Instant
Matches
Order
Management
Some
Makes
Instant
Matches
Order
Management
Some
Makes
Instant
Matches
Locate Only
All Makes
Instant
Matches
Order
Transmission
All Makes
Instant
Matches
All Makes
Real-Time
DMS Check
Order
Management
All Makes
InterCity
Services
OEConnection
Parex
PartsEye
PartsVoice
RearCounter
WHI
Fees
Structure
Locate Only
OE
Business
Model
Closed
(Dealer Only)
Comments
Commission
Custom - Varies
Custom solutions (e.g., Truckload buys to
other dealers)
Varies
Subscription
(mo. set fee)
ADP, R&R and DT DMS Integration –
optional; GM, Ford, Suzuki programs
Closed
(Dealer Only)
Subscription
(mo. set fee)
Jaguar and Land Rover
Closed
(Dealer Only)
Subscription
(mo. set fee)
Subaru, Kia, Nissan automaker programs;
Isuzu Truck
Open
Subscription
(mo. set fee)
Toyota, VW automaker programs also allmakes
Closed (Dlrs & IRFs)
Mixed
ADP, R&R and DT DMS integration –
included

26. Dealer System Integration

DMS
◦ Use Case - Wholesale
◦ Capabilities (Vary by DMS)
 Availability (Real-time & Daily)
 MSRP & Customer Matrix Price
 Open / Populate Parts Query, Quote or Invoice (part #, qty., price)
◦ ADP, R&R, DealerTrack, ASI, Karmak, … more coming

Parts Locators (for example, PV for Toyota’s TPAS wholesale portal)

27. Dealer System Integration [Cont.]

Shipping
◦ FedEx, UPS & USPS
◦ GPS / Routing – Your Delivery Fleet [Elite EXTRA]

Wholesale Buyer System
◦ Mechanical Repair Shop Systems
◦ Collision Repair Shop Systems


Payment Systems
eBay Integration (WHI, TradeMotion, PV/ADP, OEC, DST, PWS, …)
◦ Listings – comprehensive, accurate, illustrations
◦ Parts Orders
◦
Amazon Integration (TM)

28. Dealer System Integration [Cont.]

Delivery Planning & Routing
◦ eCommerce Buyer:
 Boosts confidence order
received & processed
 ETA online
◦ Dealer
 Decreases on order status/
timing calls – boosting
dealer productivity
 Customer retention & new
customer conquests up
 Better Routes saves gas,
vehicle wear-and-tear, time
 Improved productivity from GPS tracking

29. Automaker-Sponsored Programs











GM (Accessories – Chrome Data)
Ford (FordParts.com – OEC)
Chrysler (Mopar eStore – Chrome Data)
Honda (eStore);
Nissan (eStore – TradeMotion)
Subaru (eStore – TradeMotion)
Volkswagen / Audi (eStore – TradeMotion)
Hyundai & Kia (Accessories – Insignia)
Kia (parts – TradeMotion)
Toyota Wholesale (TPAS portal – Infomedia)
More …
Partial

30. Future





Improvements (including catalog & VIN) and new players
Expanding Systems Integration
Importance of photos, illustrations and videos
Targeted pricing from automakers
Online chat/call

31. Questions & Answers

Send your contact info to ted@fellowesresearch.com & I’ll
provide feedback and suggestions on parts e-commerce
planning for your dealership

Your Questions
Thank-You
For more: ted@fellowesresearch.com
www.fellowesresearch.com
www.linkedin.com/in/tedfellowes