fada auto summit 2012 - new delhi

Maurizio Sala Dealers Consortium: a sustainable solution to face the future

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39-393.332.9432


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In the past decades, market conditions in Italy have led franchised dealers to focus only partially on the

importance of after-sales and genuine parts.

This has created room for independent repairers and a strong network of independent parts dealers.


1960

19751965

198519962002


indifference of the Manufacturers and

Dealers for Spare Parts in the years of the automotive

development

multiplication of small, indipendents car repairers

and body shops

indipendent Spare Parts dealers hasdeveloped to exploit free business areas


What can Dealers do withina so competitive

and fragmented market?

1 - Give up external genuine parts sales tothe indipendent spare parts dealers

2 - Try to set a direct relationship withworkshops and body shops served by the indipendent parts dealers


With the new more and more competitive car market, and the need to compensate for the resulting decline in profits, franchised dealers need to regain portions

of the genuine parts business.


New carsales

Parts

F&I

Other

LaborTotal After Sales Business

Of total profit28.9%

Source: Quintegia – Automotive Dealer Day , only volume brands (sample represented by over 100 dealers)

Used carsales

2010

25% 3 years ago % on total profit

% on total turnover

( %)


At the end of the 1990s a group of dealers representing various franchises developed a

consortium aimed at taking care of outbound parts logistics, wholesale and marketing.

With the support of a specialized company and through a process of continuous refinement this

proved to be a successful model.


Italian total Aftermarket value

is lower ifcompared with the

other leadingEuropeanCountries.

Source ICDP

31,0 bil €

45,1 bil €

26,7 bil €

29,7 bil €


Moreover, abouthalf of its value is

absorbed byIndependent

Repairers

Source ICDP


What can Dealers do withina so competitive

and fragmented market?

1 - Give up external genuine parts sales tothe indipendent spare parts dealers

2 - Try to set a direct relationshipwith workshops and body shops


complete supplying

risksharing

customerloyalty


expect on home delivery independentlyfrom the value of the product

competence and technical assistance

clear and default prices, discounts and payment conditions

opportunity to comply with campaignsproposed by automakers

complete supplying of all brands products


availability of genuine/original spare parts

direct relationship with warehouseman expert of the brand without intermediaries

direct business relationship with the dealership

products official warranty


Logistics (External)

Payments Management

Sales Promotion


GC

Gestione Consorzi

• Management

• Logistics

• HR

• Vans

• Secretary

• Payments

• Coordination

Technical Partners

Csoft

Dealer Dealer Dealer Dealer Dealer Dealer Dealer Dealer dealer


The experience of the consortium shows the importance of managing a mix of cooperation and competition, plus the importance of outsourcing some segments of activities - where the synergies

among dealers and the degree of specialization - call for joint initiatives.


workshopbodyshop

dealer warehouse

dealer


1) order spareparts to the

dealer

2) Genuine spareparts ready for

the delivery

3) pick-up of the Genuine spare partswith the van of the

Consortium

4) swap

5) Delivery of the Genuine spare parts

at the workshop/body shop (1 or 2 times

per day)


Dealer Dealer

Dealer

Dealer

Body shop

Workshops

Workshops

Workshops

Body shop


Dealer

Dealer

Dealer

DealerDealer

Dealer

Dealer


From 30 to 45 mins


Dealer Dealer

Dealer

Dealer

In the main consortia, all this happens at least

twice or more a day

Body shop

Workshops

Workshops

Workshops

Body shop


A mechanism which allows supplying a bank statement per Customer, with a summary of all invoices issued by each dealer

Monthly, each Client receives a single bank statement summarizing all invoices issued by single Dealers and manages a single payment

The Dealer receives the payments all together once per month


Constant monitoring of accounts / relations with workshops and body shops

Unique interface

Streamlining of insolvency procedures

Sharing of financial information

Access to statistic and detailed data

Efficacy and simplification of treasury management, accounting and reporting

Costs reduction and operative efficiency increase

Opportunity to consider new agreements


Prompt delivery with clearly defined delivery time

Constant monitoring of accounts / relations with workshops and body shops

Unique interface

Opportunity to comply with promoting campaigns

Better access to technical information

Savings on payments

Bank charges reduction

Public image improvement


Thanks to the positive results of the experience, the consortium formula has been replicated in other areas, reaching a relevant degree of diffusion, and featuring

very interesting areas of potential developments.


18 Consortia with

more under development

701 Franchised Dealers with 999 pick-up points/locations

11,700 + customers

71 different brands

franchises covered

169 vans + 72 promoter


GC

Gestione Consorzi

• Gestione operativa manageriale dei Consorzi e di AsConAuto Logistica, segreteria generale AsConAutoAssociazione – 39 dipendenti

Caleidos

PdirPunto di Riferimento Partner Tecnici

Consorzio Consorzio Consorzio Consorzio Consorzio Consorzio Consorzio Consorzio Consorzio Consorzio Consorzio Consorzio Consorzio Consorzio Consorzio

AsConAutoLogistica

• 159 Furgoni

• 63 Promoter

AsConAutoS.r.l.

• Società che gestisce l’operatività Asconauto

AsConAutoAssociazione

• 30 Province

• 700 Concessionari

• 10.000 ClientiCsoft


Synergies among the 18 Consortia: to optimize existing resources. Intra-regional logistic, night transport shuttle.

Business: commecial agreements with leader companies in automotive market.Findomestic Credit to consumer & Dealers, Motor Oil Exxon Mobil, Eni, TIM, Duferco Swiss Energy, Used cars warranties, renting & cleaning of overalls, CRM, Consultancy, etc…

New projects: a real line of Research &Development


proximity warehouses


STAR – INTEGRA• Following the tracks of the STAR PROJECT

(Standards for Technology in Automotive Retail) AsConAuto is managing to develop INTEGRA: an Integrated Project which aims to standardize the

transmission of information between different systems (GSM / DMS) and then to transmit and

receive between repairers and dealers: P&A Orders, Invoices, etc...

http://www.starstandard.org/


in 10 years AsConAuto has distributed nearly 2 Billions of Euro in Genuine Parts

Glo

bal tu

rnover

of

conso

rtia

(only

exte

rnal sa

les)


Indipendent Garages

Indipendent Body Shops

Authorised Garages

Authorised Body Shops


vans 169

promoters 71

average n of deliveries/year per van(Customers served) 10.032

Average n of total deliveries/year(Customers served) 1.474.704

average valuetransported/year

per van€ 1.717.785(118.267.999 Rs)


• gathers the clients presented by the dealers

• does not manage a warehouse

• manages logistics service

• does not invoice but collects income

• does not interferes on the commercial terms offered by the dealer

• is a non-profit organization

• cost incidence on turnover is approximately 5%

• It’s a sustainable solution to face the future!

The Consortium…


http://asconautoinforma.asconauto.it/flip_pages.php?docName=22_2009_ottobre

http://asconautoinforma.asconauto.it/flip_pages.php?docName=20_2009_agosto

http://asconautoinforma.asconauto.it/flip_pages.php?docName=36_2011_gennaio

http://asconautoinforma.asconauto.it/flip_pages.php?docName=04_2008_Aprile


http://vimeo.com/26966418

fada auto summit 2012 - new delhi

Documents

sustainable solution

franchised dealers

maurizio sala stefano

genuine parts business

competitive car market

bil italian total

sales businessparts

total profitsource