What Are The Top 3 Problems That An OEM and Dealer Faces?

Automotive parts manufacturers have been an integral part of the economy ever since the invention and popularization of the automobile itself. Today also, automotive industry is highly important - and the small and medium sized OEMs are playing an important role in growth.

And, unlike all other sectors, automotive sector is also facing unique challenges. OEMs and authorized dealers are facing problems on different sector and looking for permanent solution, in order to create long-lasting success. Here, I am listing top three challenges the OEMs are facing hugely-

• Challenge In Making Strategy: After-sales service is the widely seen as key driver in generating revenue in the consumer driven world and diminishing brand loyalties. Worldwide automotive OEMs and continuously performing R&D to expand their market reach and find solution of slow growth rate. The only solution of OEMs challenges that they are facing in making strategy is integration of automated technology. As market reach will increase, OEMs will be able to increase their market revenue. Service excellence through automation is the key to of customer retention for OEMs and with manual process, it is not possible. Supply chain excellence will bring profitability in business. Through automation market will me more mature in terms of sales and services and OEMs will be able to increase their strategic importance.
• Distribution Network: Spare parts inventory management and supply chain network needs most of the attention and innovation which is currently absent in manufacturing units. High diversity on the supplier end and dealership end is necessary to speed up the part sale process as in part management OEMs faces most of the challenges. Presence of an automated platform with the network will make it easy for OEMs and dealers to avoid excess inventory storage. In current scenario, they don't get market report, but automated channel will provide them complete report in real-time, according to which dealers can order parts and OEMs can also use the market report for better decision making. Such challenge seems small, but practically they are the one to hamper growth of spare parts manufacturers in the market. Also, due to absence of such functionality, OEMs don't take risk of expanding their business.
• Forecasting & Planning Challenges: Automotive OEMs are still far away from providing cost effective and excellent customer support to the customers, because all this is not possible on manual setup. Due to increased expectations and absence of flawless services customers may switch the brand quickly and may not return again to the OEMs marketplace. For, OEMs what's at stake is their brand value. OEMs realizing such things, but they don't research the market perfectly to look for the solution, because there are a lot of software available in market that can provide the desired service level in cost effective manner. OEMs will be able to provide warranty services through digital channels and ensure that overall business remain profitable.

For automotive OEMs the above defined challenges are barrier in achieving service excellence. Apart from these, there are many other challenges like performance and reliability and supplier relationship that need to be taken seriously and addressed.

To solve such problem effectively, OEMs need perfect software and modules at a granular level combined with optimization capability.

For automotive OEMs, Intellinet is developing automated software for more than a decade. The software's are best in class and are fully capable to reduce business failure rate and increase productivity of the OEMs. Having an industry experience of developing software for equipment manufacturers, Intellinet can be your best choice. Feel free to reach out the team at www.intellinetsystem.com