30-09-2021
If you want to survive on the market, use resources sustainably and grow, there is no way around intelligent and networked logistics. Aftermarket logistics in particular offers potential for many companies: changing markets in the automotive, automotive supplier, industrial and mechanical engineering sectors as well as growing demands and increased consumer demand pose logistical challenges in the aftermarket. But these can be solved profitably – we reveal how.
AutoStore is ideal for the aftermarket logistics of small parts.
The aftermarket refers to the consumer market or secondary market, i.e. the secondary market for durable goods and their spare parts. Common sectors include the automotive sector and the automotive supply industry, as well as mechanical engineering and metalworking, the electrical industry and the aerospace industry. The spare parts market is a large sector, as aftermarket products are mostly spare parts or retrofits for high-quality goods and capital goods. The aftermarket mostly serves the end consumer (B2C) – which is why there are high demands on the entire logistics process.
Aftermarket logistics must ensure that processes, storage, transport and handling of aftermarket products run smoothly. Growing markets present companies with the challenge of aftermarket management. Although the secondary market is lucrative, it is often not a company’s core business and is very costly to manage. High costs, a large amount of space and personnel and difficult aftermarket logistics are real challenges for companies for whom logistics processes are primarily an accessory to the business model.
Examples of classic aftermarket products include vehicle components, spare parts, parts, tools, factory equipment and measuring instruments. Specifically, these include oil filters, gaskets, spark plugs, special tools, noise measurement technology and tyres. The products and materials often vary in size, shape and volume, which requires customised storage.
In the small parts sector, for example, a robot-controlled, automated AutoStore small parts storage system is suitable for logistics. In this system, the goods are stacked in containers (BINs) on top of each other without aisles in an aluminium frame. Robots store the goods, dig them out when they are ordered and take them to the picking stations. In addition to speed, space savings and reliability, the advantages are of course the options for customised storage and picking of goods as well as intelligent logistics. AutoStore is ideally suited as a central point of aftermarket logistics for small parts. For larger and bulkier aftermarket products, an automated pallet warehouse may be the best option – especially if the order volume is high. This is planned by logistics experts depending on volume, turnover frequency and resources.
In aftermarket logistics, special attention is paid to the efficient transport and dispatch of products. Ideally, storage is located at a central, well-connected transport hub. This is because the consumer market has the characteristic that orders are decentralised and therefore need to be delivered quickly, efficiently and sustainably.
In addition, the order sizes are often smaller. A smaller garage will therefore order smaller quantities of spare parts than a group from the automotive supplier sector. Order quantities and deliveries are therefore very divergent. This also complicates logistics for the secondary market and requires a strong network of transport service providers, parcel service providers (CEP) and freight forwarders.
The specifications of the aftermarket business vary from industry to industry and company to company. This means that the logistics requirements also vary. The availability of parts and the prompt delivery of aftermarket goods are important. This means that orders must be processed, picked and dispatched quickly. Centralised storage and reliable delivery by a freight forwarder or shipping service provider can be a decisive advantage and contribute to customer loyalty and growth. In addition, there is often an enormous variety of articles.
Storage and transport logistics must therefore be optimised for this. In addition to the variety of items, the variety of customers also plays a key role: workshops, construction companies, suppliers, private customers, tradespeople and assembly companies all want to be supplied efficiently and promptly. Aftermarket logistics must ensure that different order volumes, customer groups and transport routes can be served flawlessly.
Cost reduction and efficiency are important goals for many industrial companies. The current market situation and the focus on sustainable and climate-neutral products in particular are putting companies under pressure. In order to create resources for these important components and expansions of the core business, it is important to operate intelligently. Logistics can be an important lever here. Aftermarket management in particular can be almost completely outsourced thanks to the ongoing development of logistics service providers.
If storage and transport are then intelligently linked, there is also potential for growth in this area. A lack of space and limited resources often hinder the growth of this important and lucrative market. Although many sectors – such as the automotive industry or the bicycle industry (bike logistics) – have recorded high growth rates and these are forecast to continue. The AFTERMARKET REPORT 2020 shows that this business segment grew by 5% in Germany compared to 2019, even during the pandemic. In Switzerland and Austria, it was even +10% in each case. You can find the full report here.
Suppliers must combine the identification of growth potential, the requirements of aftermarket logistics, cost optimisation and the development of sustainable products. It is important to understand the growing market and its requirements. In addition, the storage, picking and transport of these goods must be optimised. Space-saving and efficient methods and processes should be promoted and implemented using equipment, technology, expertise and IT.
Companies in the industrial sector can only achieve all this if they have a logistics service provider as a partner who understands their individual requirements and takes them seriously. By dovetailing the storage and transport of aftermarket goods, companies not only avoid complex supply chains and high error rates, but also make an additional contribution to greater sustainability.
Are you currently facing the challenge of aftermarket logistics? Then arrange a non-binding consultation with our experts now:
Just give us a call or write to us. We look forward to hearing from you.
Schäflein AG
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