The Mechanical Industry Archives - OEC https://oeconnection.com/category/the-mechanical-industry/ Wed, 05 Mar 2025 21:42:54 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.2 https://oeconnection.com/wp-content/uploads/2024/06/cropped-android-chrome-512x512-1-32x32.png The Mechanical Industry Archives - OEC https://oeconnection.com/category/the-mechanical-industry/ 32 32 Understanding VIN Decoding: Full VIN Decode vs. VIN Mask https://oeconnection.com/blog/understanding-vin-decoding/ Mon, 28 Oct 2024 12:24:58 +0000 https://oecstaging.wpengine.com/?p=21467 A VIN is like a fingerprint for a car – it’ s the DNA, that unique 17-character code that tells you everything you need to know about a specific vehicle – not just year-make-model.

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When we talk about accuracy in the context of VIN decoding, we’re talking about the precision and detail available through a full VIN decode versus a VIN mask. That said, gaining access to the meaning behind each digit is a challenge because that level of insight and detail is tightly guarded information. This means complete accuracy relies heavily on the available solutions at the shop – and not all VIN tools provide the same, highly accurate vehicle information.

Accessing the VIN

While repairers and shops take different approaches to getting accurate insights into vehicles, especially for parts orders, when it comes to accessing VIN information, there are a few primary approaches:

  • VIN Mask: A VIN Mask is a partial VIN that consists of the first 10 characters of the 17-character VIN. The 9th character in this sequence is a check digit created when the complete VIN is assigned. The VIN Mask doesn’t provide full details about the vehicle because it does not include the last 7 characters, which contain specific information about the vehicle’s assembly plant, serial number, specific configuration, options, and exact build data.
  • Full VIN Decode: This involves using all 17 characters of the VIN. The last 6 characters are especially crucial because they provide the vehicle’s unique serial number. With a full VIN decode, you can access detailed information into the vehicle’s specifications, options, and build data. This level of detail is necessary for ordering the correct parts the first time around.

Why this matters

If you’re in the repair business, you already know that accuracy is critical – and it’s been repeated time and time again. VIN decoding proves that, when it comes to ordering parts, accuracy really matters. With the seemingly endless amount of sophistication in vehicles, minor inaccuracies have significant downstream effects. Accuracy in vehicle identification & repair is essential for several reasons:

  • Complexity: Vehicles are complex with numerous variations in models, trims, and components. Accurate identification of these specifics is needed to ensure that the right parts are ordered and installed.
  • Safety & liability: Using the correct parts is necessary for the safety and performance of the vehicle. Incorrect parts compromise vehicle integrity, leading to potential safety hazards and increased liability for repair shops.
  • Efficiency: It’s no secret the industry – across the board – is facing labor shortages, making efficiency more important than ever. Accurate parts orders minimize delays and rework, allowing shops to maintain high throughput and customer satisfaction.
  • Returns & rework: Ordering the wrong parts not only causes delays but also increases the likelihood of returns and rework. This damages the shop’s reputation and profitability. If a customer needs to bring a vehicle back because the wrong part was installed, the shop didn’t just lose one customer, it lost all the customers that one person tells.

The advantage of the right parts ordering platform

Most parts ordering software only allows users to input the first several characters of the VIN, limiting access to specific data, like whether the car is a hatchback or a sedan, if it’s the sport model or hybrid with different engine specifications, and so on. As a result, the shop team often needs to gather all the detailed information from the customer. This creates extra paperwork, additional back-and-forth communications, and other steps that slow things down. Without built-in precision and accuracy, shops may even start the process by ordering every version of the part for the vehicle repair, using the correct one, and then returning the others, creating an inefficient and costly process.

Repairers are better served by a parts ordering platform that allows for full VIN-based parts lookup and ordering, meaning the full 17 VIN characters and access to comprehensive vehicle data.

Fortunately, a few parts ordering platforms, like RepairLink, offer this level of detail, allowing users to quickly and easily order parts based on data from the full VIN. These platforms streamline the parts ordering process while reducing returns, saving time and money, and supporting a smoother workflow. By leveraging detailed VIN decoding and accurate parts data, repair shops can navigate vehicle complexity and, ultimately, drive customer satisfaction and shop profitability.

Does your shop leverage accurate, precise vehicle data?
Interested in leveraging a full VIN decode in your facility? Click here for more insight and how to get started.

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Mechanical Industry Insights: OEC Expert Q&A https://oeconnection.com/blog/mechanical-industry-insights-fall-2024/ Mon, 28 Oct 2024 12:16:47 +0000 https://oecstaging.wpengine.com/?p=21487 OEC mechanical repair industry expert Stephany Love shares her perspective on how current market trends, inflation, and customer behaviors influence mechanical repair shops.

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What are some of the current trends affecting the mechanical repair industry?

One of the most significant trends we’re seeing is that people are holding onto their cars longer than ever. Consumers are stretching the lifespan of their vehicles, and at the same time, many of these same people own more than one vehicle. We’re seeing car sales return to pre-pandemic levels, but inflation and economic uncertainty, especially with the upcoming election, really impact whether people spend on repairs, including routine maintenance.

How has this trend impacted both mechanical and collision repairs?

Year-over-year repairs have decreased for many repairers, causing a significant impact across the industry. This slowdown really started around mid2024, and it’s part of a larger overall trend. Customers are definitely becoming more price-conscious, and shops have to adjust. OEM promotions are becoming more important too—they help shops offer quality parts at better prices.

What are some of the biggest challenges repair shops are facing when it comes to sourcing parts?

Sourcing parts affordably has become a real challenge for shops. They’re trying to maintain high-quality work but have to juggle that with finding parts that won’t break the bank. A lot of shops are
saying that they’re relying more on promotions and discounts—whether that’s from OEMs or suppliers—so they can continue providing top-notch repairs while keeping costs under control.

Sourcing parts affordably has become a real challenge for shops.

How are shops adjusting their marketing strategies to deal with the decline in service volume?

Marketing has become even more critical now. Shops are really working hard to attract new customers and retain the ones they have. For example, RepairLink has been a big help to shops by providing access to discounted OEM parts through special promotions. Those deals allow shops to stay competitive, all while ensuring customers are still getting quality parts for their vehicles.

What strategies do you recommend for shops to overcome these challenges?

Shops need to take advantage of OEM parts promotions and loyalty programs. They should look at what’s available through leading parts ordering platforms, where they might, as an example, get something like $50 off a $250 parts cart. These kinds of promotions help shops keep their costs down but also ensure they’re still using quality parts, which is important for maintaining safety.

Shops need to take advantage of OEM parts promotions and loyalty programs.

How are dealerships adjusting to the decline in parts sales?

Dealers are facing the same struggles. Parts departments have seen sales slow, so they’re turning to new marketing solutions to try and re-engage with repair shops and customers who haven’t
made recent purchases. They’re using marketing campaigns to get those customers back by offering promotions and encouraging repeat purchases.

What advice would you give to repair shops dealing with these market conditions?

Stay focused on customer satisfaction. Even with the slowdown, it’s crucial to continue delivering high-quality service. Customers remember that, and when the market picks back up, those relationships will be more important than ever. Shops should also take full advantage of available promotions. With these promotions, they can navigate these challenges successfully by keeping costs down without sacrificing quality.

Can you share a customer success story related to these strategies?

One great example is a partnership between RepairLink and Shopmonkey. Through their integration, shops can pull OEM parts information directly into their shop management systems with just a click, eliminating the need for manual data entry. This has helped shops improve efficiency, reduce errors, and still offer customers the high-quality parts they need. It’s a win-win for everyone involved.

Meet the Expert

Stephany Love, OEC Senior Product Manager, Mechanical, has 12+ years of software and automotive wholesale experience. Stephany oversees RepairLink, the OEC mechanical parts ordering and order management platform, driving platform enhancements & strategic development. Throughout her career, Stephany has established strong relationships with both shops and dealers, providing her with invaluable insights into both sides of the parts procurement process and positioning her as a mechanical parts wholesale expert.

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Powering Connections: The OEC Global Story https://oeconnection.com/blog/powering-connections-oec-global-story/ Tue, 22 Oct 2024 12:11:50 +0000 https://oecstaging.wpengine.com/?p=21485 The post Powering Connections: The OEC Global Story appeared first on OEC.

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OEC plays many different roles for many different people in the automotive industry – we want to take a moment to share our story: 

Back in 2000, OEMs faced a huge hurdle selling parts into dealerships, mechanical shops, and collision shops. Every transaction was handled manually, by phone or fax, creating a real need for an efficient way to do business. This is where OEC entered the market. Several major auto industry players, including GM, Ford, Chrysler, and Bell & Howell, formed OEConnection (OEC as we’re known today) to help facilitate part sales between dealers and repair facilities.  

Like the automotive industry itself, growth was not inevitable but essential for keeping pace with customer needs within an evolving market. OEC continued to develop and acquire key software solutions to better manage every aspect of maintenance and repair. By strategically growing the business, the OEC customer network expanded to include aftermarket parts suppliers, MSOs, fleets, insurers and, of course, dealers, collision & mechanical repairers, and manufacturers.  

Now customers throughout the industry and around globe use OEC technology and data services to connect with each other and get vehicles back on the road safely. From our early focus on parts to our now expanded solutions and customers, OEC connects those involved in the vehicle parts and repair ecosystem so they finally have an easier way to get their job done. 

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3 Ways Business Intelligence Tools Support Parts Managers https://oeconnection.com/blog/dealerships-leverage-sales-data/ Sat, 28 Sep 2024 13:01:23 +0000 https://oecstaging.wpengine.com/?p=21288 How dealerships leverage sales data to understand their customers & parts business, access trends, and uncover growth opportunities.

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There’s a story about a parts manager who one day noticed a once-reliable customer stopped ordering parts. Confused, the parts manager called to see why. “You stopped ordering,” the parts manager said. “Why didn’t you tell me?” The shop owner replied: “I’ve been telling you for months.” The parts manager returned to his books, spreadsheets, and POs. He noticed the shop had slowly but surely reduced order volume over time, and eventually stopped ordering entirely. The parts team never saw the trend because it happened gradually and, like most customers, the shop didn’t just say: “I’m buying from someone else!”

Here are 3 ways business intelligence (BI) helps parts managers access customer trends and growth opportunities through insights into their wholesale parts business:

1. Understand the message behind customer data

There’s no doubt most parts departments know their customers well, with most completing hundreds of transactions with these shops. However, if the data is inaccessible, then much of the critical information is an untold story. When parts managers adopt business intelligence tools, like PSXLink, they can easily access sales trends, specific segments of their wholesale performance, and customer behaviors (like when a customer reduces parts spending). By unlocking and presenting data using interactive dashboards, parts teams can easily identify changing trends, both abrupt & incremental, and get a clear look at what customers are telling them.

2. Strengthen your customer relationships

It’s easy to think of these tools as numbers, spreadsheets, and long arrows that go up and to the right (great) or the opposite (time to act). But what’s at the core of business intelligence tools (beyond the ability to track behaviors, trends, & performance) is the ability to foster customer relationships. This depth of analysis provides hard data and objective information required for real, productive customer conversations. For example, if a parts manager can see a shop’s trends and think, “Woah, he’s spending less and less,” it’s clear that it’s time to pick up the phone or swing by for a visit.

3. Identify strategies & growth opportunities

BI tools do more than serve as preventative solutions to guard against lost sales. The analytics allow parts managers to easily monitor all aspects of their wholesale business – providing actionable insights for growth strategies. When you are able to monitor the segments of your business you deem most important, the sales team easily identifies customers presenting growth potential. This allows the parts manager to pinpoint opportunities, make informed decisions, track sales activity, and view follow-up progress. All of which can be managed though an integrated customer relationship management (CRM) tool.

Take control of your parts business

Missing growth opportunities and losing sales is never good for any business and will quickly impact a parts department. With enhanced access to customer data, you can see what customer behaviors and trends tell you. BI tools, like PSXLink, are designed specifically for wholesale parts and provide insights that help accelerate growth. Customers are always conveying a message to your parts department – even when they’re not “saying it” out loud – and now, more than ever, you need to make sure you’re receiving the message clearly.

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The Data Source Makes the Difference https://oeconnection.com/blog/the-data-source-makes-the-difference/ Mon, 23 Sep 2024 14:00:21 +0000 https://oecstaging.wpengine.com/?p=20699 Parts platforms supported by OEM data help shops and dealers drive accuracy, efficiency, and safety into the parts procurement process.

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The current availability of parts and repair data for collision repairers and parts dealers seems unlimited and easily accessible. That said, not all data is the same. Much of the parts and repair data currently available to repair customers comes from ambiguous or unofficial sources, including third-party suppliers. These data sources often lack quality assurances and affect parts accuracy, repair quality, and even pricing information.

When accessing parts data, it’s critical that the parts buyers and sellers consider the source of the data. Having information is good, of course. But when it’s unclear where the information is coming from (or if it’s reliable), it creates adverse, downstream effects, including inaccurate parts numbers & orders, outdated pricing, and unnecessary returns & delays.

For parts & repair information, OEM data is the clear source of truth. This is why the OEC solutions, supported by data direct from the OEM, deliver high-quality parts and repair information that is reliably accurate and consistently up to date. The OEC solutions, including CollisionLink & Trax, provide shops and dealers with the ability to:

  • Validate each OEM part number to increase order accuracy by confirming (at the VIN level) whether a part is correct, incorrect, or if additional parts may be required. This level of accuracy streamlines the ordering process and promotes a stronger customer experience starting at the beginning of the process.
  • Access an OEM parts catalog to identify and order the right parts – and all necessary parts – the first time, reducing the hassle of returns and the need to order additional parts that, with accurate data, could have been identified and procured at the beginning of the repair process.
  • Receive recall notifications when the VIN on the order has an open recall, creating an opportunity for the shop and the dealer to promote proper vehicle repair and demonstrate expert awareness of vehicle safety for the customer.
  • Access full option codes for visibility into vehicle options to ensure accurate parts orders for the shop based on the specific vehicle’s model and features. This is a significant advantage given the complexity and variation in vehicles on the road.
  • View OEM price tapes that feature accurate parts numbers for up-to-date pricing, including current promotions, parts programs, and opportunities to price match, allowing for the creation of accurate estimates and invoices.

When shops and dealers take advantage of solutions that leverage OEM data, daily tasks are easier and performed with greater efficiency. Simply put, shops and dealers can:

  • Work together effectively & productively
  • Promote proper parts ordering & vehicle repair
  • Experience streamlined workflows
  • Increase profits & reduce costs
  • Return the vehicle to the customer in a timely manner

More than that, though: the real value of leveraging OEM-sourced data is keeping the customer safe by ensuring the right parts go into the right vehicle for the right repair. This is why leveraging solutions, like the OEC platforms that feature OEM data, ensure customers always have accurate, up-to-date parts and repair information. When the repairer and dealer can trust the data, they can make – or guide – the correct part choice for the proper repair and deliver safe, efficient results for the vehicle owner.

 

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Why Integrate Your Parts Solutions https://oeconnection.com/blog/benefits-for-connecting-your-dealership-systems/ Mon, 23 Sep 2024 13:08:53 +0000 https://oecstaging.wpengine.com/?p=20896 You didn’t hire your parts team to navigate software. You hired them to manage part orders and to grow the business.

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Unfortunately, when your parts solutions don’t work together, your team loses time on admin work instead of focusing on parts sales and customer service. A quick example: The average estimate contains 40 lines, but if your systems don’t communicate with each other, it’s 40 lines of manual reentry that could otherwise be handled with one click. That’s just one scenario but demonstrates why it’s best to leverage solutions that make your behind-the-scenes processes smoother.

Here are three benefits to enabling your parts department platforms to work together:

  1. Efficiency
    We’ve all heard “time is money” (many times), right? Despite how often we hear the saying, it’s not as easy to calculate time savings as it is with other types of ROI. But having more time presents its own type of ROI: the ability to get more done. So, when your dealership’s systems work together, it eliminates tasks that slow your team down. This means you can save time, grow your sales, and, most importantly, provide better support for your customers. Products that allow your DMS to communicate with parts department solutions, like collision and mechanical parts management solutions or supply chain and backorder fulfillment tools, add efficiencies to your day by:
    • Simply saving the parts team time
    • Eliminating the need to verify customer selling prices
    • Reducing errors caused by manual order re-entry
  1. Accuracy
    When you eliminate frustrating administrative processes, like manually checking prices & re-entering orders in your DMS, you also improve order accuracy. That’s a bonus and solves two issues: In addition to streamlining your parts operations, connecting systems within your parts department improves the overall quality of the information that you provide to customers. By reducing the error-prone manual tasks through system integration, your parts team can:
    • Provide real-time information
    • Display accurate inventory
    • Develop a reputation for dependability
  1. Profitability
    Efficiency and accuracy gains allow your team to focus on more meaningful tasks, like increasing sales. This is where you see the more expected type of ROI: healthier profits and growth. Solutions that create connections between your systems allow you to put your people in position to leverage their expertise and insights to support customers. When your parts management platforms communicate directly with your DMS system, you can experience a streamlined, accurate process to support your bottom-line by:
    • Avoiding pricing mistakes
    • Minimizing costly returns
    • Improving customer satisfaction

Too many tools, too little time
Your parts team likely uses many systems throughout the day. With so many tools and processes, it’s easy to get bogged down. When the team can zero in on customer-focused work, it benefits your shops & your parts business. This makes it worth your time to find new ways to streamline admin tasks, improve the customer experience, optimize your parts department.

 

 

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The Value of Shop Retention https://oeconnection.com/blog/the-value-of-shop-retention/ Mon, 23 Sep 2024 12:55:30 +0000 https://oecstaging.wpengine.com/?p=20894 Why keeping your parts department top of mind with customers is the key to your bottom line.

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For many parts departments, the idea of customer retention marketing is met with: “we don’t have time… we’re too busy!” With many struggling to find enough hours in a day to manage orders and inventory, it’s understandable that marketing doesn’t fall at the top of the to-do list. This creates the challenge parts departments often encounter: the need to meet parts revenue goals with limited resources.

By understanding which customers offer the most value to your bottom line, you can position your parts department for success by using deliberate, targeted, and cost-effective customer retention strategies. This approach is backed by data – part sales data shows that engaging existing customers offers the strongest returns while requiring fewer resources.

Customer retention by the numbers

According to 2023 OEC eCommerce data, a loyal shop spends an average of $34.6K annually – that’s 5.2 times more than a new customer. The numbers speak for themselves, but the underlying point needs to drive parts department marketing strategies. $28K in potential sales is a sizeable number – the difference in annual spend between existing and new customers – that can be the difference between hitting your goals or falling short.

Cost of new customer acquisition

With part sales growth strategies, your instincts likely lead you to focus on new customers. Targeting new business seems intuitive, but a closer look reveals a different story. It costs five times more to acquire a customer than to reengage an existing shop. When you add up the cost of acquisition, you see how many resources go toward new shops that may never order parts. The math is clear: it is more cost effective & profitable to engage existing customers and promote loyalty.

Be strategic & deliberate

While data shows customer retention provides the most upside, this does not mean new customer development should stop. It just demonstrates that you want to allocate resources to your strongest opportunities. Customer retention efforts are proven to be more successful and require fewer resources. Why? Because you know your existing customers. You have a relationship. You have sold them parts before. There is a level of familiarity with each other. Engaging this audience requires less from your team and a little nudge or friendly reminder can yield solid results. Simply put, customer retention gets more bang for the buck.

The value of shop retention, a recap:

  • Existing customers spend an average of 5x more on parts annually at $34.6K
  • New customers spend $6.9K on parts annually ($28K less per year on average than existing shop customers)
  • New customer acquisition is 5x more expensive than customer retention OEC recently launched

OEC eMarketing, an efficient, turnkey solution designed to support dealerships with targeted marketing campaigns that retain shop customers. To learn more about the power of shop retention here.

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How to Optimize Your Parts Department https://oeconnection.com/blog/optimize-your-parts-department/ Mon, 23 Sep 2024 12:53:40 +0000 https://oecstaging.wpengine.com/?p=20898 When your dealership is equipped to handle parts transactions quickly, you make the process easier for shops and your team.

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Most parts departments have their go-to parts ordering tools – one for collision, one for mechanical, and even more – that the team uses to receive, process, and fulfill orders. In theory, it’s simple: orders come in, the team responds quickly, and the parts go out. There are, however, times when things don’t run so smoothly and not because the parts team made a mistake. As most know, managing parts orders can quickly become a time-consuming hassle, especially when you factor in a frustrating parts payment process, having too many systems that don’t work together, a lack of visibility into business trends and customer behaviors, or worse, customer retention issues and limited resources to address the matter. These are just a few areas where your parts department could benefit from a little optimization – and that means becoming more efficient, productive, and profitable.

Here are a few tips for dealership optimization that make a big impact on your operations & your customers’ experience:

Streamlining parts transactions

A seemingly endless amount of complexity is built into automotive parts and components. Even the supply chain that moves each part is impressively sophisticated. In the end, you would think that paying for the parts – the actual transaction between shop and dealer – would be, well, the easy part. Not so fast. The payment process for parts ordering (as shops and dealers agree) is anything but simple. Inefficient and outdated payment processing practices are still the prevailing method for many shops and dealers. Whether this means having a delivery guy sit at the shop and wait for cash or issuing and mailing paper invoices (not known for their efficiency), it shows a clear need for process improvements. When your dealership is equipped to handle parts transactions quickly, you make the process easier for your shops and your team, giving everyone more time to work and deliver better results.

New parts payment processing solutions offer secure, streamlined approaches that are both user friendly and cost effective. Just think, what could the team do if they weren’t bogged down by manual transaction processing? How much time could you put back in your day if you could automate the ordering, payment, and reconciliation process? Just the increase in efficiency from reduced cycle times on receivables would go a long way. When your dealership is equipped to handle parts transactions quickly, you make the process much easier for your shops and your team.

Leveraging business intelligence

A simple way to say this is: know your numbers and know your customers. Business intelligence (BI) tools provide insights that are otherwise unavailable or require you to comb through DMS data. Plus, BI solutions do more than show you sales numbers; BI helps your team monitor customer behaviors and trends, track customer interactions, and stay aware of key data points that highlight the health of your parts business.

It doesn’t take long to get caught up in the workday, making it easy to overlook trends that impact your sales, especially if you need to dig for the data. If one of your once-reliable customers starts to reduce order volume gradually, would you know? Customers speak with their wallets and it’s not always obvious until it’s too late. This is where BI makes a difference. By offering a clear look at your wholesale performance, the leading solutions provide the information you need in interactive dashboards and shareable reports. It simply boils down to having tools to help you make proactive, informed decisions, giving you the confidence of knowing your business.

Engaging in customer retention marketing

You may be thinking, “okay, great, I know my numbers and know which areas and which customers need attention.” But you’re also thinking, “I can’ t reach out to everyone or stop by all my shops with a box of doughnuts and coffee.” True, but turnkey marketing solutions can do the work for you, especially for customer re-engagement campaigns. It gets better, too! Customer marketing solutions that are designed to target your existing customers not only create new touchpoints with dormant customers, they also support cost-effective sales growth. Data shows that re-engaging current customers is the most effective way to grow your parts business through marketing campaigns.

Why? Your existing customers, on average, spend significantly more on parts annually than newly acquired customers. To go along with that, it’s also more cost effective to engage existing customers than to add new ones. It takes more resources and manhours to attract new business – that may not payoff down the line – than to work with customers familiar with your parts department.

New solutions are available within the market that use your current ecommerce data to target your existing customers through automated, professionally crafted email campaigns. These communications can include “We miss you” re-engagement campaigns or themed promotional messages that can drive business back to your dealership. Just think: When’s the last time you reached out to a significant number of your current shops? It’s not that you don’t want to, it’s just not practical. That’s why turnkey marketing solutions are becoming critical to parts department growth: you can reach out directly to your customers and strategically grow your business without over-leveraging your time, budget, or staff.

Connecting your current systems

Sometimes it can feel like technology is both the solution and the problem or, at the very least, a roadblock. You have several systems for managing parts orders and some don’t ‘speak to each other’ or integrate, creating manual work you hoped technology would eliminate. That’s the downside. The upside is that the industry’s technology providers are aware of the issue and developed solutions to address system connectivity. When systems are integrated, your parts department can move faster, work with greater accuracy, and limit mistakes that create holdups. Current solutions are designed to connect ecommerce part sales solutions with DMS platforms. This creates the connectivity you need to:

  • Quickly (or even automatically) build quotes for parts orders
  • Offer an accurate reflection of your inventory
  • Reduce the likelihood of human error (like typos from re-entering orders)
  • Limit the number of returns to process

Enhanced connectivity limits mistakes – obviously, that’s great! – but the efficiency gains allow your team to focus on more meaningful tasks, like increasing sales. These tools put your people in a position to leverage their parts expertise and insights to support their customers.

Optimization is about filling gaps & clearing obstacles

Parts department optimization is not necessarily about finding and making sweeping changes. Optimization is about taking what you’re good at, strengthening those areas, and removing obstacles. Can your team sell parts and manage customer relationships? Sure! Does the payment process always go smoothly? No. But that doesn’t mean you scrap everything. However, it’s probably time to identify ways to optimize the process. As we said above, this is an area of need that both shops and dealers cite (routinely) as creating complications. As noted, there are many examples where certain processes have small gaps that, when corrected, create a positive outcome for the business. Dealership optimization is about filling those gaps and clearing obstacles, allowing your team to do what they do best: sell parts and provide expert service to shop customers efficiently and professionally.

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Who should use an online parts procurement solution? https://oeconnection.com/blog/who-should-use-an-online-parts-procurement-solution/ Wed, 13 Mar 2019 01:25:00 +0000 https://oecstaging.wpengine.com/who-should-use-an-online-parts-procurement-solution/ With shops already using them, its dealers who need to catch up.

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Most independent repair shops use a Shop Management System (SMS), like Mitchell1, R.O.Writer or something similar. They also use parts procurement systems, like RepairLink Shop, that integrate with their SMS. But what about franchised dealers?

If you’re a dealer, you likely use a Dealer Management System (DMS), a similar concept to what shops use. So the simple answer to who should use an online parts procurement system, is YOU! You need a parts procurement system to capture online OE part sales – and there are more opportunities than you think.

Selling online provides you a new revenue stream

We know you rely heavily on the phone, along with occasional faxes, for your parts orders. But did you know that 52% of shops purchase parts when your parts department isn’t open? That means you’re missing out on a significant amount of sales. Selling online means you’re open 24/7, can receive orders any time and can have orders ready to be filled when you arrive in the morning.

If you sell your OE parts online, you get even more opportunities for selling parts on top of the phone orders you already receive. So don’t put all your eggs in one basket, a.k.a. the phone.

Displaying your inventory online can save a phone call or two

With DMS integration with a parts procurement solution like RepairLink, you can have your inventory updated every single day. You know how important inventory is to shops. Making it easy to see your inventory on the screen will give your staff (and shop staff) time to focus on more important tasks, like fulfilling orders.

Miscommunication on parts requested goes way down

If you don’t currently use a parts procurement system, your shop customers likely call and tell you what part numbers they want, or they may describe the parts they need. It’s your counter staff’s job to make sure they heard it right or that the customer said it right. And unfortunately, that doesn’t always happen correctly. Making your inventory available online eliminates most errors and much of the back-and-forth phone calls with your shops.

Selling online gives your shops the whole picture

Shops call you for specific parts. Many times, they forget parts affiliated with the parts they called for. Some part procurement systems, like RepairLink, show illustrations and diagrams of the parts – all the parts they need.

Selling online will not damage your current customer relationships

If you think that by selling online you will lose the relationships you have with your customers, think again. Many of our dealers tell us their shop relationships are not remotely tarnished by offering their parts online. Their phone conversations change from several part availability calls to one order confirmation call.  However, phone calls will not completely disappear by selling online.

Think about your own buying habits and what drives your purchasing behavior. 82% of buyers are influenced by a manufacturer’s online presence¹, so it’s not really an option to neglect your online presence anymore. For your parts department (regardless of size), this means you need to be where your buyers are. And your buyers are using online parts procurement solutions, like RepairLink.

¹Hedges & Company, 2016.

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How do I select a parts procurement system to sell mechanical parts? https://oeconnection.com/blog/how-do-i-select-a-parts-procurement-system-to-sell-mechanical-parts/ Mon, 11 Feb 2019 20:27:00 +0000 https://oecstaging.wpengine.com/how-do-i-select-a-parts-procurement-system-to-sell-mechanical-parts/ There are lots of options, so let's break it down.

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There are numerous parts procurement systems available to help you sell more mechanical parts. Depending on your objectives, it may not always appear black and white in identifying which is best for your parts department.

When we say a parts procurement system, we mean a computer application or service. A lot of these systems, like RepairLink, are web-based, providing the ability to log in from anywhere to access your parts department’s mechanical parts sales data. Being web-based also means your information will never “crash” like it could on a local computer.

How parts procurement systems compare

Here’s a simple breakdown of common parts procurement systems based on brand coverage, market development, buyer networks (shops), dealer networks and complete OE data availability.

 

Why are these elements important when it comes to selling parts?
  • Brand coverage – think about this from a shop’s or customer’s perspective. Most repair facilities (unless they are specialty shops) repair any brand that comes into their shop. While parts are never identical brand-to-brand, shops don’t have the time to go to fifteen different websites to buy parts. If they had it their way, they would buy all their parts from one source. With an online parts marketplace like RepairLink, your shop customers can shop and purchase OE parts from over 20 OE brands without leaving their browser.Going to different sources takes time – something repairers take very seriously. In fact, did you know a technician’s time is worth $3 – $6 per minute?¹ They simply don’t have time (or money) to waste.

 

  • Complete OE data – Not only do shops need diagrams and illustrations, but also the latest and most up-to-date data available. Whatever parts procurement solution you choose, make sure to ask where their data comes from and how often it is updated. Outdated data often leads to the wrong part being ordered, which means more time lost due to returning the part and reordering the right part.

 

  • Dealer Network – When you’re looking for a parts procurement system, make sure that solution has a solid network of dealers who use the solution, too. Why? This goes back to brand coverage and how most repair facilities will repair any vehicle that comes into their shop. Shops generally do not control what brands they repair. Sometimes the parts they use aren’t the brands you sell, and that’s OK! An expansive dealer network means their parts procurement solution is the answer to any parts they need. While they may not order from you this time, they likely will next time. So the dealer down the street from you is not your competition, but your ally. You help each other compete against the real competition – the aftermarket.

    For example, shops can find parts from over 20 brands and 4,500 dealers on RepairLink. Not all these dealers will be in a shop’s specific market, but there is likely enough brand coverage for shops to continuously go to one source they know will always have their part.

 

  • Buyer network – Like the shop-side, as a dealer, you want to make sure there are enough shops using the parts procurement system you invest in. Now, “using” the parts procurement system is relative. For example, with RepairLink, many shops use RepairLink Shop for its diagrams and illustrations to identify the parts they need, and then call the dealer to purchase their parts. While it’s always better for shops to buy online for better order accuracy, sometimes shops feel more comfortable calling. Many dealers like to provide their inventory online via RepairLink for just that reason. Having a presence in an online parts marketplace like RepairLink ensures they stay in front of shops – regardless if shops order from them through RepairLink or pick up the phone.RepairLink has over 30,000 shops looking up and shopping for parts monthly; about half purchase directly online (and are spending over $15 million a month in the process).

 

  • Market development – Many parts procurement systems have limitations. Whether it’s per brand or location-specific, you want an established solution that’s trusted by shops across the country. Choosing a solution with boundaries, like locations, doesn’t give you a lot of room for your customer base to grow – there is always a limit.You can find RepairLink in every U.S. market with a franchised dealer. Any franchised dealer (all 18,000 nationwide) can add RepairLink as their parts procurement system.

¹180 Business Solutions, 2017.

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What kind of support should I look for when choosing a parts procurement system? https://oeconnection.com/blog/what-kind-of-support-should-i-look-for-when-choosing-a-parts-procurement-system/ Thu, 10 Jan 2019 02:12:00 +0000 https://oecstaging.wpengine.com/what-kind-of-support-should-i-look-for-when-choosing-a-parts-procurement-system/ Different parts procurement systems provide various levels of support, but many don’t offer much.

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Do your homework. When choosing a parts procurement solution for your mechanical business, make sure it provides answers to all the questions you may have.

RepairLink, and all other OEC solutions, provides support on numerous levels:

Customer Success

Make sure you have people — yes actual people — that gives you tools to make the most out of your invested dollars in a parts solution. For example, whether you’ve used an OEC solution for one day or 1,000 days, the OEC Customer Success team is ready to help you succeed. OEC prepares you — and your customers — for success through multiple support offerings, enabling your business to immediately become productive.

Using data analytics and a ‘best practices’ framework, our experts go beyond features and functionality, taking a proactive approach to drive parts sales through OEC solutions and grow your business. Our goal is for every dealer to realize and experience the value of our solutions.Our sole goal is to help you sell more parts — and you should expect nothing less.

Customer and technical support

Sometimes you have a simple technology question that you prefer to look up yourself. Whatever solution you go with, make sure there is this level of support, at a minimum.

With OEC, we have our Support Center, available 24/7, with thousands of answers to common troubleshooting questions to helpful videos to guide you on how to develop out your wholesale business. A valuable resource for customers who may not know where to start or have hired new staff is the Learning Center within the OEC Support Center. The Learning Center provides quick refreshers on the basics and hot topics. Regardless of the question, the OEC Support Center is always available for help.

For those times when you don’t know how to describe your question, or need an answer immediately, you can call the OEC Customer Support team, available from 8 am – 8 pm ET, ready to take your (or your shop’s) call.

In-Person consultation

If you are serious about growing your parts business, select a solution that goes beyond helping you solve a problem, and offers a new direction. For example, if you’re looking to grow your parts business and want an in-dealership, personalized approach, OEC Performance Coaching is your answer. OEC Performance Coaches work directly with your dealership personnel to implement strategies and improve usage of OEC solutions, which ultimately helps you grow your customer base and sell more parts.

Regardless of the solution you choose, make sure you go with one that has your back, is readily available to support you and your team and helps you reach your business goals.

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What’s the difference between selling collision parts vs. mechanical parts? https://oeconnection.com/blog/whats-the-difference-between-selling-collision-parts-vs-mechanical-parts/ Sat, 13 Oct 2018 01:10:40 +0000 https://oecstaging.wpengine.com/whats-the-difference-between-selling-collision-parts-vs-mechanical-parts/ The dealer down the street is NOT your competition.

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Let’s break down the differences:

 

A deeper look:

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