OEM Parts Channel Balancing
OEM parts channel balancing is needed to incent business partners to contribute to overall success.
Without channel balancing, OEMs and dealerships prioritize certain channels at the expense of others. Generally, the OEM parts channels that are prioritized are those considered strategic, while the ones left alone are expected to benefit from ancillary attention.
3ng Consulting’s OEM Channel Balancing Services allows OEMs and dealers to balance all their parts channels, effectively and economically. We know how to get past the obstacles and implement real, productive channel balancing solutions.
What is OEM Parts Channel Balancing
3ng Consulting’s OEM Parts Channel Balancing Services are designed for service parts suppliers, OEMs, and dealers. If your channel is unbalanced and underperforming, let us know and we will help define and implement a solution.
OEM parts and service market shares fail to move above 18% because their sales channels are out of balance.
Most OEM supplier agreements limit part supplier participation to production, delivery service levels and price points. This casts aside many supplier competencies that can help increase sales.
This creates an unbalanced channel, because all channels eventually require capabilities a supplier can provide but the OEM has to acquire through 3rd-parties. As these services come at a cost, automakers are forced to allocate limited budget and pick winners and losers.
Fixing an Unbalanced OEM Parts Channel
Most Purchasing Departments know the cost of much but the value of little. As a result, many OEM parts channels are built on transactional rather than organizational relationships, with the primary focus being on price and service levels.
This circumstance places unnecessary costs on the OEM, as they often hire 3rd party service providers to fix the resulting channel imbalance. The costs and value of these contracts are rarely contextualized or scrutinized beyond a few simple indicators.
At 3ng Consulting, we know how to maximize the value of your existing channels without the need for expensive 3rd-party support. We can also recalibrate your parts channels so they encompass multiple parts or multiple parts categories.
Let us help you realign your parts business.
Channel Balancing Consulting Insights
OEM service and parts channels are ineffectual because many are unbalanced. Find out what can be done to balance your channels with our Automotive Channel Balancing Insights.