On 1 July 2021 several changes were implemented within the South African automotive aftermarket industry. These changes provide a more inclusive and a more competitive environment for aftermarket traders and Independent Service Providers (ISPs).

According to the Competition Commission, these guidelines address the lack of competition and consumer choice in the sale and fitment of spare parts and for the service, maintenance and mechanical repairs of insured vehicles as well as vehicles under warranty.

Herewith some of the changes that the automotive aftermarket industry needs to adhere to:

• Allow ISPs to undertake service and maintenance work while a vehicle is insured or under warranty

• Remove all restrictions imposed by Original Equipment Manufacturers (OEMs), approved motor-body repairers and authorised dealers in the sale and distribution of original spare parts to ISPs

• Give consumers the right to service or repair their motor vehicles at a service provider of their choice, which could be either an approved dealer or ISP

• Promote the usage of both original and non-original spare parts in the vehicle owners' choice of service, fitment and replacement auto centres

• Ensure that auto parts traders and ISPs have access to approved centres' and OEMs' technical training on spare parts and services

The impact on the automotive parts industry

The above guidelines encourage more competition in the lucrative aftersales market by allowing more local automotive businesses and car parts distributors to serve a growing customer network. For auto parts distributors, this most likely means increased business and consequently the need to effectively manage an influx of stock, orders and sales.

Automotive parts distributors will, for example, be able to sell both original OEM parts and non-original replacement parts. They may even become the preferred auto part suppliers in the region, requiring immediate business improvement and scaling to meet customer demands.

Consequently, as the automotive aftermarket industry becomes busier and as competition increases, suppliers or distributors cannot do without a highly functional management system to support efficient stock management and real-time operational processes to name only some of the key functions. It is becoming a business critical component, with an even greater advantage if your business management software system or ERP provider understands the distributive trades which means they will more than likely cater to local market conditions and legal changes.

The advantages of automotive aftermarket software or industry specific ERP systems

Unlike many general commercial software solutions, industry specific systems are tailored to the specific requirements of that industry for example in the case of automotive parts distributors.

For example, Kerridge Commercial Systems’ ERP system has been designed and developed for the wholesale and distributive trades with many customers in the automotive aftermarket industry.

Auto part distributors using Kerridge Commercials Systems ERP systems, can expect to streamline their operational and distribution processes thanks to responsive, user-friendly and real-time system access that facilitates:

• Better inter-branch communication to view and order parts from/to any branch
• In-depth stock management functionality with real-time product updates
• Quick, efficient and flexible parts search and identification
• Efficient warehouse management
• Detailed view of current auto parts stock, margins and profit
• Immediate order fulfilment and task/process execution

And much more…

Selecting the right ERP or business management system is an important decision and if done correctly, it will have a big and positive impact on the business. It can help prepare a business such as an automotive aftermarket distributor with increased business scalability and profitability in a busy and rewarding trading environment. It shows the importance of having a unified, relevant and flexible system that is capable of supporting growth, integrating and streamlining key operational functions.

Speak to Kerridge Commercial Systems consultants about our latest automotive aftermarket software and learn more about what it can do for your business.

Find out more about Kerridge Commercial Systems' innovative solutions at kerridgecs.co.za.