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The Uptime Blog Update: How Fewer Dealers Can Sell More Parts
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After removing almost 3,200 dealers, how can manufacturers increase revenue, decrease costs and increase volume and profits? This question must weigh heavily on the minds of OEM executive teams. With people buying fewer cars, one area that is ripe for OEM growth is aftermarket parts, which is one of the most profitable pieces of the business.
The OEMs only have about 10% share of the aftermarket. (See previous blog post: "OEMs and aftermarket parts—a bigger piece or a bigger pie.") Two of the questions that probably come up for a VP of Parts are, “After losing 3,200 parts desks, what is the best way to sell parts to the car owners who relied on that dealership? And, “Is it possible to increase service parts volume with fewer dealers?” I believe there are encouraging answers for both questions. It may be time for OEMs to consider a new parts strategy that I call the Dealer Parts Hub (DPH)...
Read more about "How Fewer Dealers Can Sell More Parts"...
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Chrysler wants to close 25% of its dealerships (almost 800) taking the total number down to about 2400. GM wants to close 40% of its dealerships to get down to about 3,600. These decisions reflect the fact that car sales are dropping from about 10M annually to about 7M and are forcing the manufacturers to re-think many aspects of their business model: revenue, costs, volume and profits. |
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| Enigma to Exhibit at MRO conference in Germany |
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Enigma will be exhibiting at the MRO & Operations IT Conference to demonstrate Enigma's InService MRO, Job Card Generator and Revision Manager solutions.
When: June 8-9
Where: Sheraton Frankfurt Hotel & Conference Center
Frankfurt, Germany
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| Webinar: Trends and Opportunities in Oil and Gas Aftermarket Sales |
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Wednesday, June 10
11:00am EST (3:00pm UTC/GMT)
Register here.
Whether they sell top drives or valves, most oil and gas OEMs capture only 30% of the aftermarket parts business. How can they capture the remaining 70%? By making it easy for their customers to find and order OEM parts!
Join this webinar to learn about current aftermarket trends, and how OEMS can dramatically increase their aftermarket part sales.
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| Oracle and Enigma Present "Optimizing Your Service Parts Value Chain" |
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Wednesday, June 17
11:00am EDT (3:00pm UTC/GMT)
Co-Presented by Oracle
Register here.
The aftermarket parts and service business is lucrative (service parts represent only 25% of most OEM’s revenues, but about 75% of profits). It's also fiercely competitive; OEMs control less than 40% of the overall service parts business.
To help OEMs counter the competition and boost service parts sales, Oracle and Enigma offer a joint solution that makes it easier for their customers, sales and service personnel to identify and order the right parts.
Join this webinar to find out how Oracle and Enigma deliver a complete solution that provides OEMs with:
- Consolidated parts catalogs, maintenance manuals, technical specs and sales collateral---pre-filtered according to serial number, product line or configuration/trim package to enable fast and accurate parts lookup, updates and ordering
- Up-to-date service and parts information---whether working online or offline---to allow customers, dealers and distributors to find critical information and transact business in the service bay, on the road and in the field
- E-business capabilities---enable seamless interaction between key business applications such as dealer management systems, ERP, configuration management and inventory/logistics systems, to allow users to rapidly and accurately locate and procure service parts.
Register here.
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| In This Issue |
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Uptime Blog Update: How Fewer Dealers Can Sell More Parts
Upcoming Aviation Exhibition
June 10 Webinar: Trends & Opportunities in Oil and Gas Aftermarket Sales
June 17 Webinar: Optimizing Your Service Parts Value Chain
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