by Pedro Ferro, senior vice president and president, Aftermarket & Trailer, Meritor
The aftermarket sector continues to be important and vital to the operating success and viability of fleets and their parts supplier partners, including warehouse distributors, OE dealers and independent service garages. Many motor carriers are doing more business with warehouses and mini-parts distribution centers (PDCs). They want to maximize tractor and trailer life and uptime from their current vehicle roster.
Warehouse distributors, dealers, fleets and other end-users are being squeezed at every turn as they strive to increase margins and at the same time reduce costs and working capital. Suppliers that are true “aftermarket survivors” must flourish in this tough market by staying true to their convictions of high parts availability and responsive delivery.
Owners with an average vehicle age of nine to 10 years are focused on quality replacement parts availability and overall lifecycle costs. They also want a supply distribution channel with appropriate product support, counsel and expertise. Fleets have “discovered” the total cost of a parts purchase ̶ even the sourcing, inventory requirements, order processes and shipping costs. They know full well that comprehensive parts portfolios having low-cost, too-good-to-be-true pricing comes with issues of quality, support, resources, availability and backup. More than ever, astute vehicle owners demand greater before- and after-the-sale support.
A number of North American aftermarket trends has impacted our entire business segment and its customers. But suppliers are managing and in some cases “attacking” with smart new business and supply practices:
Growth of Private Brands in the Aftermarket. Most OEMs and many large independent distributors have created their own parts brand for several reasons to add speed to repairs, drive service business into the dealerships and stores and to offer a new choice. Meritor also supports and supplies some of these brands, primarily in our areas of expertise such as undercarriage and drivetrain parts. Where applicable, we work to uphold quality in the Meritor product portfolio and to reinforce the brand strength of Meritor products.
Greater Influence of Information Services on the Parts Business. More fleet operators have become comfortable with shopping and buying their parts on the Internet and often go online to make comparisons. Whether looking for parts availability or learning and training tools, online information continues to play a greater role in the aftermarket. The successes of online retailers like Amazon.com have raised expectations for anyone who uses the Internet to compare products and place orders.
Many suppliers have online catalogs and ordering systems. In our case, customers can use Meritorpartsonline.com to place orders, check product availability and the status of a delivery, print invoices, view in-depth technical information and see enlarged views of products and assemblies. Dealers and independent shops have equal access to general service and repair information for Meritor products. Online channels have also contributed to Meritor’s ability to step up customer service with responsive call centers that provide first-call resolution, follow-up resolution within 24 hours, order board management and e-commerce functionality.
