Automotive industry: be aware of the mandatory data-sharing code!
The poised introduction of the mandatory data-sharing code in Australia’s automotive industry will see Australia’s 23,000 independent repairers being able to compete with the 3,500 new car dealers, having huge implications for the market for repairs, and making waves up the supply chain to parts dealers, wholesalers and distributors.
This mandatory data-sharing code looks like it will be designed to give independent repairers access to known faults and fixes, car history, and the thousands of lines of complex code needed to diagnose and repair the increasing amount of models intertwined with software-paired systems and parts. Using this data to the best of their ability will unlock dollars and hours when able to diagnose problems correctly the first time.
Once the fix of a common repair is known, parts required will see a greater demand, and the cogs in the supply chain will have to move quickly to respond in order to win business.
Prepare your inventory
Supplier of parts in the independent automotive aftermarket will need to prepare their inventory to enable them to keep up with the changes in demand. The changed dynamics in the market will require they manage their inventory to keep up. Sales of some parts will grow rapidly, where others may stay behind. An inventory management system must be able to cope with those changes, alerting where sales are excessive, or short, and allowing the planners to focus on what requires attention. Responding faster to the market will result in increased availability of product, resulting in increased turnover, and in a reduction of the excess inventory and potential write-off.
As manufacturing processes, parts, and information channels become increasingly rapid and complex, it is important for business processes and operations to transform with them. Companies with a clear strategy, a well-defined business process, and a sufficient degree of automation supporting the business will be able to respond faster to the dynamics and survive in this evolving market.