fueled by challenge. powering success.sm

GENERATE REVENUES WITH AN EFFECTIVE PARTS

WHOLESALE STRATEGY.

Parts wholesale has the potential to significantly contribute to the total parts

turnover of your business. However, the market is as complex and fragmented as it

is profitable. Traditional OEM service channels are threatened by longer service

intervals, shorter ownership cycles, increased fleet penetration and decreasing

customer loyalty. At the same time, OEM franchised dealers face stiff competition

from a broad range of players such as independent parts players, service chains

and independent repairers – all of them intent on seizing their share of the market.

In order to protect and develop their business in this lucrative area, OEMs need a

proactive approach. This includes maximizing efficiency, new pricing strategies,

targeted marketing, dealer staff coaching and innovative distribution approaches.

MSXI has developed a 360° solution based on decades of international practical

experience. Our solutions help OEMs regain their leadership and generate growth

by strengthening traditional parts wholesale channels and opening up new value

creating opportunities.

EMBRACE NEW CUSTOMER AND DISTRIBUTION MODELS.

MSXI is the partner of choice for the majority of major premium and volume

manufacturers looking at successfully developing their parts wholesale

business. Our forward thinking team of automotive experts combines deep

industry experience, intelligent core technologies and best practices to

champion new ideas and ways of doing business. We currently run parts

wholesale programs in 27 markets with more than 1,500 dealers growing their

parts sales through a network of 300,000 independent repairers. In this

strategic paper we summarize key challenges and share our professional

insights on how to add value to your company and achieve a competitive

advantage.

The automotive market is undergoing a fundamental change with aftersales

representing one of the industry’s most important profit drivers. Once a car drives

from the showroom, the competition for aftersales revenue already begins.

Although many customers continue to believe that OEMs and genuine parts offer

them higher quality, OEMs are increasingly competing against mature independent

parts suppliers, wholesalers, repair shop chains and independent repair shops.

More than ever before, OEMs need to ensure their quality service reputation and

brand image in the parts wholesale segment.

dealer programs markets271,500

ROI 4:1

in

In addition to an innovative distribution model, OEMs need to ensure an exceptional

customer experience within their parts wholesale business. Aftersales customers

demand the same quality support they received when buying their vehicle.

Strategies include:

A data infrastructure to help manage vehicles, customers and retail processes

A customer-centric, multichannel sales and service network with differentiated

offers

Sales and service staff with the most up-to-date technical understanding of

vehicles and their features

New retail landscapes with the latest technology – 3D configurators, video

screens, etc.

COLLABORATE TO TRANSFORM YOUR PARTS WHOLESALE LANDSCAPE.

The good news is that OEMs are well positioned to compete in the parts

wholesale business because of a highly developed retail network, standard

processes, and a strong brand image. The key will be to combine these traditional

retail network strengths (e.g. best sales locations and original parts) with an

innovative distrbution strategy that unlocks higher margins. This requires a change

in mindset in order to cross industry boundaries and launch a mutually beneficial

collaboration model which results in better service for customers. Particularly in

the 3+ year old vehicle market, OEMs can extend their brand ecosystem by

developing an independent channel parts business. In this scenario, dealer

networks act as wholesalers of genuine parts to independent partners, thereby

increasing parts sales volumes and re-engaging with their customers. MSXI

dedicated parts specialists help develop and implement the necessary business

market strategy processes, people and technologies to align, engage and mobilize

all collaboration partners. Our pay for performance model delivers a guaranteed

minimum ROI of 4:1.

THE MSXI 360° APPROACH TO PARTS WHOLESALE EXCELLENCE.

The MSXI parts wholesale solution helps OEMs develop and implement a competitive

parts offer for independent repairers. Our 360° approach takes eight crucial success

factors into account:

1. Market & Network Assessment: MSXI proven analytical methodology identifies

Market Parts Trade opportunities for OEM franchised dealers offering GAPS and

establishes a strategy to maximise sales opportunity and ROI.

2. Training & Coaching: Following the agreed strategy, MSXI trainers and

coaches ensure all elements of the program (people – process – technology) are

consistently implemented at dealer level.

Campaign Management

Bonus Incentive & Reward

Market & Network Assessment

Training &Coaching

Marketing &Communication

Sales Field ForceContact

Centre

MarketIntelligence

360º

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3. Marketing & Communication: MSXI centralized marketing and communication

services ensure that OEM loyalty programs and tactical initiatives are consistently

delivered to all independent repairers.

4. Sales Field Force: MSXI Sales Field Force plays a critical role recruiting

targeted independent repairers into the program, influencing their purchase habits,

converting parts sales and maximizing OEM penetration.

5. Contact Centre: The MSXI Parts Trade Contact Centre maintains an ongoing

contact with independent repairers facilitating inbound technical calls and

outbound marketing and sales calls. This is a critical function to maintain IRs

engaged in the programme and to sustain parts order volumes.

6. Market Intelligence: The management of all data coming from program dealers

and IR performance, field and contact center activities and providing actionable

information in terms of product price positioning, competition sales and

promotional initiatives is very important to increase sales efficiency and maximize

sales conversion.

7. Campaign Management: Implementing a dynamic parts pricing and

promotional strategy based on accurate market intelligence and benchmarking is

fundamental to maximize sales opportunities protecting profit margins. The MSXI

Campaign Management team implements dynamic pricing and promotional

strategy programs as agreed with the OEM and monitors their effectiveness and

ROI.

8. Bonus Incentive & Reward: The MSXI team provides implementation and back

office support to administer dealer and IR incentive and reward programs

established with the OEM. Tracking and communication of individual dealer and IR

performance versus target is also provided on a regular basis.

DISCOVER YOUR UNTAPPED PARTS POTENTIAL.

Your parts wholesale business has the potential to contribute significant revenue as a

part of your total parts turnover. The MSXI Parts Wholesale Excellence Solution

assesses current business and develops a detailed action plan designed to help you

meet certification standards and ensure sustainable success. We establish standard

processes, tools and promotional activities aimed at improving market penetration,

competitive pricing and distribution strategies. Our customer service strategy is

based on excellence and is individually tailored according to your business objectives

to set you apart from the competition.

Our Parts Wholesale Excellence Solution is easily integrated into your existing service

offers, according to your customer expectations. All solutions are quality controlled

and certified for Parts Wholesales Excellence. To ensure your long-term success we

also support you with the qualification of your dealership staff.

Vehicle Life (Years)

Seller 1 2 3 4 5 6 7 8 9 10Customer

DealerPrivate

OEM/CaptiveLarge Fleet

OEM/DealerSmall Fleet

DealerSmall Commercial

DealerShort Term Regs

DealerDemo Cars

DealerStock Cars

OEM/DealerLarge Rentals

DealerSmall Rentals

OEMOEM Company Cars

OEMOEM Employee Lease

OEMOEM Car Sharing

Moment of Remarketing

Rep

air

Valu

e pe

r Ve

hicl

e

Ser

vice

Mar

ket S

hare

in %

350

0

100

200

300

50

150

250

Test

100

0

20

40

60

80

Private First Owner (Finance/Lease)

Car Park Management

User/Chooser

User/Chooser

1st Owner 2nd Owner 3rd+ Owner

MSXI, A GLOBAL PARTNER WITH DEEP INDUSTRY EXPERIENCE.

MSX International (MSXI) is a business process outsourcing company that provides

technology based services to enterprises in more than 80 countries. MSXI’s deep

industry expertise combined with advanced data analytics and custom software

solutions improve the performance of automotive dealership networks by increasing

revenue, reducing cost and enhancing customer satisfaction.

MSXI Solution Portfolio:

TEAM UP WITH THE PARTS WHOLESALES EXPERTS.

Our forward thinking team of automotive experts combines deep industry experience,

intelligent core technologies, superior analytics and best practices to champion new

ideas and ways of doing business.

If you would like to know more about how we work and the results experienced by

our existing customers, please contact Dirk Bott at dbott@msxi-euro.com .

Dirk BottVice President RNS,

Managing Director (DACH & Nordics)

dbott@msxi-euro.com

$

MSXI ANALYTICS SOLUTIONS

MSXI TECHNOLOGY BASE

TECHNICAL SOLUTIONSProviding Dealer Technical Exper�se

WARRANTY SOLUTIONSReducing warranty costs

DEALER SOLUTIONSDriving dealer performance

TRAINING SOLUTIONSDriving employee performance

TECHNOLOGY & STRATEGIC CONSULTANCYDeveloping successful retail strategies

RETAIL NETWORK SOLUTIONS

GENERATE REVENUES WITH AN EFFECTIVE PARTS

WHOLESALE STRATEGY.

$If you want to benefit from our

competent and innovative solutions,

please contact us.

MSX International | www.msxi.com

TEAM UP WITH THE AUTOMOTIVE EXPERTS.

MSXI Retail Network Solutions provide you with an individualized, scalable

Connected Retail Strategy that integrates the sales and service experience,

thereby securing optimal connectivity between the car, the customer and

the retail experience.

MSXI FACTS & FIGURES.

years of experience

employees

million revenue

over

75

6,000

500

in over 80 countries