Parts distribution balancing – if you’re not doing it right, you’re losing sales and giving business to your competitors. We have helped many companies achieve channel balance using our tested approach. These efforts serve to facilitate balance, agility, and growth
Avoiding Common Parts Distribution Errors
The bad news is that building and maintaining a balanced channel takes effort. The good news is the right guidance makes it easy. We can help you understand why your channel is not performing up to standard. But it does require that you stay vigilant and avoid the most common errors.
Don’t over-negotiate: Automakers, aftermarket distributors, and dealers have a lot of leverage. But using all your leverage can leave suppliers short of resources and unable to provide the innovation you expect. A balanced contract with clear objectives and rewards for all channel partners makes the entire channel stronger and more profitable.
Survey Your Dealers: The squeaky wheel gets the grease, but the silent wheels keep things moving. Overlooking the silent channel members ignores their needs and keeps them from providing input. We can help you stay in touch with your customers through the use of ongoing market touch programs. This will help ensure that you don’t miss any valuable input.
Address your weak links: Every channel has poor performers. But before you start replacing business partners, find the root cause and make sure vendor performance is the issue. Instead, updating contract terms and improving or changing the program structure may deliver the performance you need with less disruption.
Find the Right Partners: Choosing the right partner is a complex process. Oftentimes, the contract is awarded the wrong bidder. We can help you identify some examples of common conflict points, including:
- A large organization has good resources, but your program may be too small to get attention
- A polished sales process may be hiding poor market technology or capabilities
- A company may be automaker focused but still lack a good dealer program or vice versa
- A global supplier may not have a good understanding of your local market
Building from Strength
Every member of the parts distribution channel brings unique strengths and capabilities. The best channel structures use these strengths so all channel partners can maximize their growth, profitability and flexibility.
Automakers/Distributors – Automakers and distributors have a long view of the industry and exercise authority over program construction. For these participants, balance and equity is key. Contracts that are not equitable often result in underperforming parts distribution channels. 3NG Consulting can help automakers and distributors strike the right balance and facilitate high performing vendors.
Dealers/Jobbers – Dealers and jobbers have knowledge of local parts channels, which usually gets lost in the shuffle. Ensuring dealers and/or jobbers have the tools, financial benefits, and voice to impact parts distribution strengthens the entire supply chain.
Suppliers/SaaS providers – Suppliers and SaaS providers bring tools, capabilities, and resources that are not available to automakers and dealers. The right supplier with the right incentives and focus can balance the supply chain and provide growth for all channel partners.
How we Help our Clients Balance their Parts Distribution
At 3NG Consulting, we help make good programs great programs. Our unique experience provides a complete view of the industry. And our insights are proven to enhance the performance of automakers, suppliers, and dealerships. Whether you’re trying to stay ahead of market change, add customers or geographies to your existing portfolio, or build new product we have the parts distribution knowledge to make it happen.
Companies We can help
We provide services and support for all members of the Parts Distribution Channel, from tier 3 suppliers to dealers and repair facilities.
Going Global — Whether you are entering the US or expanding to other countries, our experts can help you build your strategy, program, and network.
Business Development — Capturing automaker business is an art that requires the right knowledge, approach, and contacts. As automaker insiders, we understand the rhythm and contacts that lead to successful engagements.
Research & Strategic Consulting — Research is about assembling actionable information to create a successful strategy. We know how to collect useful data for actionable strategies. Click here to learn more about our Market Research services.
Launch Planning – Move fast from concept to market stability with certainty. 3NG Consulting can move you quickly through market sizing, solution planning, partner identification, M&A targeting and market launch. Click here to learn more about our Launch Planning services.
Market Disruption – The car business is lucrative with large margins making channels prime targets for disruption. We understand the market and help create solutions so you can capture your piece of the business.
Technology Partner Selection – Software and SaaS solutions can be a mixed bag. 3NG Consulting can see past the sales pitches and identify the providers who have the capabilities to make the most of technology.
Mergers and Acquisitions – M&A is as much about aligning strategy and capabilities as it is about financial planning. 3NG Consulting can help you find the hidden companies that will achieve your goals fast and economically. Click here to learn more about our M&A Advisory Assistance services.
Channel Balancing – We can inspire all your channel partners to push for the same goals – growth, stability, and profitability. 3NG can help you apply the principals of channel balancing to ensure you all share the same goals.
Lean Business Process — Most people are aware of Lean Production but few are aware of the benefits of Lean Business processes. Our leaders have over 35 years of combined experience using the Lean Business Process. We can help implement the principles in your Organization. Click here to learn more about our Lean Business Process services.