What the future holds

TRW’s Francois Augnet has spoken of the forces behind the changing landscape of the aftermarket; citing increased globalisation, market consolidation and the arrival of new technologies as being the drivers for change.

Augnet suggests that the automotive distribution channel needs to follow the example of global industries such as food and pharmaceutical and consolidate its supplier base, and that parts suppliers themselves need to adopt a global strategy and become purveyors of more than just product – providing integrated solutions that add real value. He insists that focused resource, dedicated manufacturing facilities and the introduction of business tools such as vendor managed inventory (VMI) – which enables a transparency of stock levels to aid the supply chain - will make all the difference.

“Endurance is the key. If you lose your position on the leader board, it is very difficult in this climate to reclaim it. TRW’s objective is clear, with a global vision we want to gain membership of the small number of companies with Aftermarket sections making more than two billion dollars." stated François Augnet.

The three defining roles of the parts supplier of the future:

1. Product: Offer unique, integrated solutions to simplify business. TRW is well placed with its global ‘Corner Module’ offering of OE quality braking, steering & suspension.
2. Productivity: Provide solutions in terms of logistical flow and processes, such as VMI.
3. Tools: Offer ‘complete, cost effective solutions’ to encourage autonomy – such as TRW easycheck, the service tool which allows simple jobs to be done in the garage. 

And Augnet’s last word on the subject: “Position yourself correctly. TRW's strategy is clear. We are a solutions provider, not a distributor. We are looking to create added value - not crush it. ”