“Beware of little expenses. A small leak will sink a great ship.” – Benjamin Franklin
This thought-provoking quote from one of the founding fathers of the United States implies how vital it is to save costs wherever possible. Businesses across all sectors struggle to manage some little expenses, but OEMs often face more critical challenges when it comes to regulating spending.
When you rely on conventional methods of spare parts management, the entire cycle becomes more like a hierarchy than a simple process, bringing in complexities that result in bad customer experiences. Staying put with these practices is a drastically huge risk; given that you are a part of a fast-growing global industry with a market of over USD 400 billion.
The absence of a centralized spare parts management system from the sales equation is then followed by overstocking, ordering errors, production delays, and downtime. Therefore, opting for suitable electronic parts catalog software is not just a digitized upgrade, but a necessity for OEMs on the curb of declining sales numbers.
In addition to gaining a competitive edge, there are more ways you can easily leverage a catalog system and cutting costs is one of those benefits.
In this blog, you will explore 8 different ways parts catalog software can help you save costs while keeping communication intact with your network of dealers and distributors!
Let’s Understand the Purpose of A Spare Parts Catalog Software
Spare parts catalog software is tailored to meet your specific operational needs, allowing you to maximize transparency in your sales cycle. But the core purpose of these systems goes deeper as it is designed to empower your dealers, distributors, and end-customers with ease of placing orders.
These systems are utilized by leading OEMs to simplify parts search, selection, order placement, and quick tracking. All-in-all, an intuitive customer experience comes hand-in-hand with cost savings and increased sales.
Here’s how parts catalog software serves its purpose in various other ways:
Search – Automotive aftermarket is a vast domain and it can be difficult to search the right part or a variant, especially for dealers and distributors. With a smart search option, your customers will have the choice to flexible search for a broad array of spare parts.
They can find these using the first or last few letters of the part they are looking for. Looking for specific products using VIN number, model, and year are some revolutionizing aspects of search options of spare parts catalog software.
Identification – Apart from search, an error-proof identification of the part is another challenge users often confront while placing an order. Powerful EPC software like Intelli Catalog enables users to highlight specific areas in an elaborate 2D image to identify the exact part or product they are looking for.
Upgrade History – Keeping an eye on part upgrades and supersession is highly imperative in the ever-evolving realm of automotive aftermarket. Strategically developed parts catalog software comes with features like ‘Part History’ to ensure they select a suitable variant of the part.
Tracking – Your customers want to know the aftermath of their purchase in the form of an easy tracking system that allows them to know when they will be receiving the parts.
These purposes of this software eventually turn out to be beneficial for OEMs in some ways. However, the next section will help you see how these systems can directly help you save costs in the long run.
8 Ways to Save Costs Using Spare Parts Catalog Software
1. Controlled Inventory Expenses
Performing a manual analysis of inventory is more like shooting in the dark as it lacks a sense of clarity and distinctiveness. The absence of an automated parts catalog system also increases the possibilities of overstocking and understocking. In both cases, OEMs have to bear the losses in terms of dwindling sales numbers.
In fact, overstocking of parts is one of the common inventory expenses that can easily be managed with the help of EPC software.
OEMs can save costs with this software by automating their inventory setup. It can be used to create alerts for low stocks so you don’t have to incur the additional expenses of emergency rush orders. Moreover, it assists in keeping track of the parts that are already there in the inventory.
2. Centralized Procurement Process
The absence of a centralized procurement process is another challenge lying wide ahead of OEMs trying to keep up with order fulfillment. Placing an order for particular spare parts using traditional practices can be a hassle for dealers and distributors in terms of time and money consumption.
In the end, a decentralized arrangement brings in errors like duplicate orders, non-negotiable deals in bulk purchasing, and no control over purchasing activities.
OEMs can leverage this software to centralize the procurement process and save costs by gaining better control of the process. Aside from control, centralization offers transparency that will prompt you to understand the gaps in the sales cycle and rectify issues, leading to a proactive customer flow.
3. Minimized Equipment Downtime
Equipment downtime can affect businesses on many levels as it affects the credibility and value proposition of original equipment manufacturers. For example; an automotive company wants to order certain parts for its vehicles that will be used for out-of-station deliveries. In that case, OEMs will need to fulfill the order to maintain the trust of their customer.
But what if there’s a downtime and you don’t have the exact part they are looking for?
With electronic parts catalog software like Intelli Catalog, you can minimize equipment downtime to sustain the trust and retain your customer base by improving your services. This is how a spare parts catalog system can be used to reduce downtime and save costs on a wider scale.
4. Maintenance Scheduling
Maintenance is a key player in the automotive aftermarket sector and the majority of businesses rely on maintenance scheduling to stay ahead of the curve. One can also say that maintenance scheduling is a remarkable sales opportunity for OEMs as long as there is an automated system with real-time updates and information distribution.
With this software, you get a tool to facilitate automated maintenance scheduling with strategic features like real-time order status, fundamental equipment needs, and other maintenance requirements. Even though, it is another efficient way of reducing downtime and boosting sales, it eventually results in cost savings for OEMs.
5. Transparent Warranty Management
Warranty management is a maze of issues in itself as it requires you to keep track of every little detail associated with a particular part or product. Any form of miscommunication or an error can cost OEMs the entire sale and customers’ trust.
However, you can always use this software to bring transparency to your warranty management process. With quick and easy access to warranty records of faulty parts, a lot can be tackled without losing money.
Here’s how effective and transparent warranty management software works. When someone reports faulty parts, you will be able to check its warranty details instantly and proceed with the needed step without causing any delays.
When you have the right set of information at the click of a button, you can expedite warranty processes to avoid potential disputes and keep the sales flowing.
6. Enhanced Service Efficiency
Let’s explore this integral aspect of saving costs using spare parts software with an example.
You recently introduced a new range of parts (also known as parts supersession) that will require a different installation process and compatibility updates. Now your dealers and technicians will need time to understand this upgrade thoroughly.
An automated catalog management system is far more comprehensive and insightful than a conventional means of storing and distributing the knowledge base. With all updates available at one tap, everyone involved in the sales cycle will be able to access it conveniently.
7. Simplified Resource Planning
Resource planning has proven to be an impeccable strategy for saving additional expenses that often impact the overall budget of manufacturing and distribution. Acquiring real-time insights into inventory levels and sale-purchase patterns enables OEMs to maintain the stock which is often in demand.
A streamlined resource planning process can be helpful in saving costs, but what role does a spare parts catalog play in this equation?
Electronic parts catalog software facilitates the use of historical data and predictive analysis, both immensely crucial for lucrative resource planning. This system offers a forecasting feature which is the clear gateway to keeping a close watch on future requirements and real-time inventory details. You can utilize it to optimize storage spaces and optimize orders with ease.
8. Reduced Error Rates
Century-old methods of spare parts management are prone to human errors. However, it can turn into a significantly large expense if practiced consistently. Apart from this, manual entry of any data followed by time-taking order processing is where leading OEMs lose it against other market players.
The utilization of this comes with the advantage of automated part identification and verification. It even prevents the selection of an irrelevant part, reducing the possibility of faulty orders. Therefore, it is safe to say that digitization of your spare parts management cycle will efficiently reduce the error rate and help you save costs.
Data-driven decision making and boosted customer satisfaction are then followed by a streak of successful sales and a substantial cost saving for OEMs.
Why Choose Intelli Catalog to Save Costs & Upscale Aftermarket Operations?
Trusted by 75000+ users across 70 countries, Intelli Catalog helps OEMs reduce 30% of costs while catering to their operational needs such as distribution of information and simplification of the sales cycle.
Our spare parts catalog software is known for its exceptional order management capabilities that address every problem associated with parts search, identification, order placement, and tracking.
Its cross-platform compatibility with varying screen sizes lets your users place orders using iOS, Android, and web interfaces hassle-free. With versatility in our vision, we endeavor to offer a flexible experience that can result in enhanced communication, boosted sales, and significant cost savings.
Would you like to know more about Intelli Catalog and its cost-saving advantages for OEMs? Get in touch with us or book a demo to start saving money today!
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