Between 2020 and 2021, the global automotive aftermarket standards is normal to grow its proceeds from $380 billion to $408 billion.
A compound annual growth rate (CAGR) of 3.8 percent is concluded for the industry, which is predicted to generate $529 billion in revenues by 2028.
The automotive replacement part providers and service enablers sectors are the two most critical categories in this industry. It is anticipated that global development and investment in this industry will continue to expand as a result of the digitization of these segments and the opportunity of e commerce stores (distributor portals).
The COVID-19 lockout has had an impact on the trade for products in this particular business. Commercial vehicle section demand has begun to fall, while the demand for old automobiles and aftermarket auto parts endure to rise. Rather than the normal V-shaped recovery experienced during the past financial crisis, the recovery of automobile components supply and demand is concluded to be sluggish until 2025. The epidemic has brought up a number of additional variables that are contributing to the poor recovery, including the following:
- There will be fewer vehicles on the road.
- There are fewer collisions
- There is a low level of utilisation of public transit.
- Digital channels and online sales have shown significant growth.
Let’s take a look at one of the ways your firm may ensure that its digital channels have the information and functionality they require to stay ahead of the competition and achieve revenue targets. Is your organisation using the data formats set by the Auto Care Association (ACA) and do you have systems in place that enable you to collect and deliver rich product content to your ecommerce shop and other channels in an efficient and cost-effective manner. Let’s have a look and see.
Understanding the ACA Standards
The whole automobile aftermarket supply chain is supported by the Automotive Aftermarket Suppliers Association (manufacturers, distributors, and sellers). It affords resources to its members in the areas of advocacy, education, networking, technology, market information, and communications in order to serve the facinate of the entire membership. They are professional in all of the fields that have been listed.
Access to the most generally used standards in North America, as well as best practises for their use, is made available through the ACA. This helps to cut costs and boost ability in the ecommerce and technology arena. The ACA supplies the following data standards to assist companies throughout the world in efficiently interacting with commercial partners around the world:
- ACES (Aftermarket Catalog Exchange Standard)
- PIES (Product Information Exchange Standard)
- IPO (Internet Parts Ordering)
- iShop (Integrated Shop Standard)
- Super Spec
Specific to the Americas, every company wishing to handle business in the region is obliged to comply with the ACES and PIES data standards, as well as related best practises. The machine-readable XML format is the standard communication technique applied by all trading partners for this purpose. The following are some of the improve adhering to these standards:
- It is necessary to shorten duplication of communication and distribution efforts.
- Conserving both time and money
- Reduced expenses throughout the supply chain
- Increase the quantity of products that are brought to the market as well as the time it takes for them to reach the market.
- Increases sales by reducing returns and increasing operational productivity by lowering returns
A Product Information Management (PIM) system offers many of the same advantages. Let’s have a look at it.
Why It’s So Important to Use a Product Information Management System to Support Data Standards
An enterprise product information management system (PIMS) is a collection of processes supported by best practises that enable product managers, marketing professionals, digital artists, and other key stakeholders to create rich product content that can be managed and distributed across multiple distribution channels. Essentially, a product information management (PIM) solution is a software application that enables users to design processes and accomplish tasks such as the creation, the aggregation, the enrichment, and the distribution of product content. Human resources, business processes, and technology work together to give the following benefits to the organisation:
- A single source of truth should be utilised to handle product information in order to ensure consistency.
- Product enrichment operations can be made more efficient by improving data integrity.
- By interacting with ecommerce channels, you can increase conversions while decreasing returns.
- New and updated items can be introduced to the market in less time.
- Automated workflows and notifications are replacing manual operations in many organisations.
Because organisations in the auto industry are obligated to embrace the ACA’s data standards, staying current and preserving data integrity is a time-consuming undertaking. Vehicles, manufacturers, assembly, fitment, and coverage are all being updated on a regular basis by the industry. Every time the data format or rules/best practises change, companies must make sure that their internal templates and mappings are up to date as well.
Having a business information management system in place grants you to manage data and costs far more efficiently and effectively. A workflow can aid in the translation of tasks, the assignment of accountability, and the establishment of dependencies. Templates and mapping can be changed in real time within the platform, avoiding the need for time-consuming manual processes. In order to establish data accuracy from source to destination, field level mappings and file formats will be used. This means that the underlying data will not need to be changed on a daily basis.
The capacity to leverage the power of a product information management system (PIM) to better operational efficiency, increase accuracy, and achieve a faster time to market product information onto distribution channels is extremely beneficial for companies managing automotive aftermarket product content.