A large number of SKUs with unstable demand
The order volume of the automotive aftermarket depends on scattered and random market demand, and there are many types of automotive spare parts. In terms of frequency of use, there are many non-standard and long-tail pieces, with low consumption frequency for individual SKUs, making the demand for products more difficult to predict.
High pressure on inventory costs
The supply and distribution of spare parts are affected by seasonal, cyclical, and regional factors. If dealers and manufacturers hold a large amount of inventory to cope with possible spare parts demand, it will lead to a large amount of inventory accumulation and high inventory costs; on the contrary, if dealers and manufacturers do not hold spare parts inventory, it will lead to a long customer repair service cycle, causing customer loss.
The overall supply and distribution network is relatively complex
The supply and distribution network of spare parts involves many entities and information interactions, from dealers and OEM manufacturers issuing order requirements to the actual process of spare parts delivery. The delivery period of the automotive aftermarket is random and the time limit is short, some parts products have relatively complex processes and raw materials, and the product supply capacity is highly affected by production capacity and external interruptions, and the supplier's delivery period is unstable.
Based on the advantages of the full cycle of data value mining such as data governance, data exploration, model training, and strategy application, Digital China has helped the car company build a data solution for the automotive spare parts supply chain by collecting and monitoring data and KPIs of the entire process such as supplier production, supply chain logistics, and inventory turnover.
