OEM Dealer Inventory Management is a critical component of any heavy equipment OEM’s business, especially when it comes to spare parts components which typically have to be available at any given moment.
However, this is easier said than done. Having the right parts at the right time in the right place to ensure high fill-rates and limited downtime requires a lot of connectivity and visibility.
Spare part operations extend far beyond your own network of central and regional warehouses as OEM—it involves independent dealers, distributors, service facilities, and other distribution channels. OEMs typically lack visibility over this network—making it very tough to manage inventory, predict future demand, and keep customers satisfied.
This is exactly why the industry and OEMs need a change; a shift from traditional dealer inventory optimization software to a solution that covers the big picture.
Dealer inventory management software helps OEMs and dealerships manage inventory, technicians, and machinery to improve their efficiency, reduce costs, and ensure that they are able to meet customer demand.
By providing real-time data on inventory levels and production processes, the software can help OEMs to make better decisions and stay competitive in a fast-paced and constantly evolving industry.
Typically, it’s a multi-layered approach:
These functionalities are standard for inventory management software, but they’re nothing without clear, precise data. That’s the challenge OEMs need to solve—capturing the right data for efficient parts management.
There are clear reasons for an inventory management tool that covers the OEM’s own supply chain, from the central warehouse to the country units, regional warehouses, and local parts distribution centers.
Accessing these benefits, however, can be tricky with disconnected dealership inventory management solutions. OEMs can’t talk to customers directly. Oftentimes there is another complex supply chain of independent dealers, distributors, and service facilities between OEMs and customers separating them.
OEMs typically use a combination of solutions to manage the downstream supply chain—but this doesn’t provide the connectivity needed to get full visibility. This makes it difficult to ensure customers have the right part at the right time and place.
So, how can OEMs optimize dealer inventory management?
In today’s fast-paced business environment, connectivity and visibility are the keys to success. They go hand-in-hand: connectivity provides visibility by ensuring that you receive accurate, real-time data across the supply chain. This allows businesses to identify bottlenecks and inefficiencies and take corrective action in real time.
End-users and their IoT machines are directly connected to the dealers/distributors, whose Dealer Management Software/ERP systems are connected to the OEMs—providing a connected, informed, automated, and optimized spare parts management system.
The data collected through this connectivity is super important because it provides valuable insights into sales performance, inventory management, customer behavior, market trends, and competitor activity. By leveraging this data, OEMs can make better business decisions and improve their operational efficiency, customer satisfaction, and revenue growth.
Your chosen solution should act as a data integration hub, connecting and activating the players across the service network.
Gone are the days of using different solutions to manage the downstream supply chain—a strong solution connects them effortlessly into one system without needing to replace the current infrastructure in an expensive way. Don’t be fooled by the bells and whistles of shiny features and functionalities—what you’re looking for from your dealer inventory management solution are connectivity and visibility.
Connecting the multi-stakeholder supply chain optimizes the inventory management system for everyone. It enables OEMs and dealers to get a more realistic picture of customer satisfaction, streamline operations and increase efficiency, drive greater revenue, and reduce stockpiling costs.
Data is king—and creating a connected network that gathers, analyzes, and provides insights into your operational data is crucial for supply chain optimization. Without a connected network, dealers and OEMs are relying on poor data for effective parts management—a recipe for disaster.