Achieving Optimal Customer Service And Efficiency With A Digital .

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SOLUTIONS FOR THE AUTOMOTIVE AFTERMARKET INDUSTRYOPPORTUNITIES AND CHALLENGES INAFTERMARKET PARTSHOW ONE NETWORK HELPS YOU MANAGEThe aftermarket auto parts sector is expected to grow at more YOUR AFTERMARKET BUSINESS:than 3% per year until 2030 . In the US, the average age of thecars on the road is reaching 11.8 years, and between 2018and 2023 the number of cars between 6 to 11 years old willincrease by 27% - fueling growth in the aftermarket sector. Inaddition to this anticipated growth, aftermarket companiesshould prepare to monitor and respond to the followingtrends in the coming years: Increasing importance of professionally managed fleetsbecause of the emergence of Uber and other newgeneration transportation companies: How to revampthe supply chain and work more closely with partners? Growing importance of eCommerce and emergence ofnew digital native competitors to gain a share of revenueand profits: How to get closer to the customers? Howto maintain and increase customer service levels tomeet shorter lead time requirements? How to be moreomnichannel, serving online sales, dealerships, andworkshop networks equally well? Electric and hybrid electric vehicles will make up asignificant portion of vehicle sales, reaching 30% by2025: How to cater to the proliferation of parts andmaintenance tools and systems, in terms of changingdemand patterns and requirements on inventory levels? Shifting market growth to emerging markets: Howto expand global reach and put in place supportinginfrastructure to capture growth and market share,while defending existing strongholds?Digitization is inevitable and will be accelerating due torapid shifts in demand patterns, value chains, and thereforethe supporting supply chains. To increase competitiveness,capture new opportunities, and embrace these disruptivechanges, an OEM, parts manufacturer, parts distributor,or ecommerce company will have to revamp how it viewsits supply chain and leverages its partners as a close-knitnetwork to improve performance. In this paper, we describehow.REQUIREMENTS FOR SUPPLY CHAINSUCCESSThe key supply chain requirements to support a well-runaftermarket business include: Highly scalable solution to continuously designand maintain desired service levels with right levelof inventory investments and replenishment forindividual parts Predict and sense demand by individual aftermarketpart automatically. Propagate demand, orders,shipments, and arrivals in real-time across all tiersof partners and suppliers, in internal and externalsupply network Balance supply and demand across the entire supplychain network (including management of returns)with real-time data and collaboration in order torespond to fluctuating customer needs and reducetransportation and ordering costs Manage collaboration between customers andaftermarket service and parts providers to ensure ontime deliveries and task completion Optimize decision-making and respond moreeffectively when changes and exceptions occur Automatically reallocate materials around the clock Delight customers with unified order fulfillment Enable key steps in your digital transformationjourney toward a truly digital and autonomoussupply chainKEY FINANCIAL BENEFITS FOR YOURAFTERMARKET BUSINESS: Improve deliver service levels to over 95%Reduce inventory network-wide by 20 to 40%Reduce expedited freight cost by 30 to 50%Improve logistics utilization by 5%Improve resource efficiencies by 50%1. Provide parts inventory in the right quantities in the rightmix at the right location and the right time2. Satisfy customer service levels in order to minimizedowntime and delays for customers3. Minimize shipping cost required to satisfy orders andreplenishment needsSOLUTIONS FOR THE AUTOMOTIVE AFTERMARKET INDUSTRY ONE NETWORK ENTERPRISES WWW.ONENETWORK.COM2

SOLUTIONS FOR THE AUTOMOTIVE AFTERMARKET INDUSTRYHowever, to achieve a winning level of supply chainperformance, there are some hurdles: Intermittent and/or high variability demand patterns:How to modify demand and replenishment strategiesand execution, especially for slow movers? Large number of parts with different criticalityassignments: How to plan and execute in an optimal wayfor an enormous and growing number of parts? Managing the tradeoff between inventory levels and fastresponsive time requirements needed to satisfy customerdemands: How to keep the optimal level of safety stockon premise and in the network to minimize the costswhile maintaining service levels? Stock obsolescence and write-offs: How to performfrequent demand and supply matching to eliminatewaste and financial loss? Introduction of new parts and phasing out old onesefficiently: How to perform detailed planning andexecution for individual parts (not just groups of partsor locations) to achieve winning performance? How tomanage returns effectively? Synchronization of orders and deliveries with work ordersand project plans: How to match material arrivals withproject plans and maintenance work orders? High transportation costs: How to minimize expensivemodes of transportation (for example, parcel delivery)and minimize expediting? One Network Enterprises. All rights reserved. Adoption of new service-oriented business models: Howto digitally manage transactions and returns betweencustomers and aftermarket service providers?ONE NETWORK’S AFTERMARKET PARTSSOLUTIONThe One Network aftermarket parts solution includes partscatalogs and workflows for OEM, aftermarket, refurbished,rebuilt, and spare parts businesses. The platform aggregatesdemand across your network of dealers and customers, andoptimally sources parts, then concurrently optimizes materialand transportation with: A Supply Chain Control Tower plus network servicesincluding forecasting, autonomous forecast adjustment,multi-tier order, replenishment and inventoryoptimization, and returns management to ensurenetwork-wide visibility, orchestration of inbound supplyand supply-demand match, management of MRO andreturns – all you need to avoid disruptions. An integral transportation suite (including parcelmanagement) to ensure rapid execution and collaboratewith logistics providers in real time to resolve unforeseenissues in a timely manner.3

SOLUTIONS FOR THE AUTOMOTIVE AFTERMARKET INDUSTRY One Network’s multi-party digital business networkto enable all trading partners to work closely togetherin order to improve performance and solve problemsquickly at the lowest cost. NEO Autonomous Agents, One Network’s proprietarymachine learning and intelligent agent technology, tocontinuously monitor the supply-chain wide network andintervenes to prevent or solve problems. When disruptiveevents occur, NEO agents can take quick proactive,predefined actions anywhere in the Network. NEOAutonomous Agent workflows in the network use costbased resolutions to minimize total costs while keepingyour supply chain running smoothly. Transactional API’s to connect with required dealer/customer sales order management systems to enable acollaborative ordering process.CONTROL TOWER FOR FULL VISIBILITY ANDCONTROLOne Network’s Control Tower provides end-to-end visibilityand control across the network, as well as plan-to-actualtracking, with alerting and KPI visualization for all networkparticipants (suppliers, carriers, channel partners, and endcustomers). It monitors, manages, and controls decisions andexecution across functions and across companies to optimizethe entire network.The Control Tower solution offers considerable benefits andcapabilities for Aftermarket businesses, including: End-to-end visibility across aftermarket supply chainpartners, including suppliers, transportation carriers, andthird-party logistics Collaborative information sharing in real-time fordecision-making and actions Early warning alerts and exception management toresolve supply chain disruptions before they impact yourbusiness Predictive and prescriptive decision-support forpredictive and prescriptive analytics Autonomous decision-making and control that takes therobot out of the human and boosts productivityThe Control Tower uses Intelligent NEO agents extensively.It serves as a system of engagement across trading partnersand orchestrates companies and functions to work togetherin real-time to serve the end consumer at the lowest possiblecost.Any combination of local and global Control Towers can beconfigured on the network, providing each party with theright level of visibility, control and exceptions managementacross any combination of sites, regions, and countries.A REAL-WORLD AFTERMARKET PARTSCASE STUDYAn automotive manufacturing company deployed OneNetwork’s Aftermarket solution for all inbound rawmaterials, all aftermarket parts and all refurbishmentbusinesses. The solution managed inbound supply,sustainment, and logistics across the globe.The highly scalable Aftermarket solution enablesfully integrated inbound support, global logistics andoutbound fulfillment system with more than 30 thousandsuppliers for several hundred thousand SKUs. Withthis single global connection to all suppliers, carriersand fulfillment partners worldwide, this customer isaccelerating its digital transformation and attainingtremendous benefits along the way. The companyachieved rapid ROI, going live in phase one within sixmonths. It reduced transportation costs by 20 percent,including improved customer service levels and reducedoverall operational costs.The Aftermarket Parts solution runs on One Network’smulti-party digital business network, and is integratedwith many other powerful network services, includingOne Network’s industry-leading Control Tower,recognized as a leader by Gartner, Nucleus Research, IDCand others.NETWORK SERVICESOne Network has designed its network services and businesscapabilities around industry-specific cores. The Automotiveand Manufacturing industry core embraces the fundamentalsand nuances of the automotive and manufacturing industries.It includes industry workflows, algorithms, machine learning,planning, transaction flows, data models, alerting, KPIs,and reports. Thousands of companies, including OEMs,automotive and industrial suppliers, carriers and freightforwarders are already on the platform, providing a globalnetwork that grows stronger and more efficient with eachnew addition.SOLUTIONS FOR THE AUTOMOTIVE AFTERMARKET INDUSTRY ONE NETWORK ENTERPRISES WWW.ONENETWORK.COM4

SOLUTIONS FOR THE AUTOMOTIVE AFTERMARKET INDUSTRYPredict and sense demand, then autonomously create andadjust ordersArtificial intelligence and statistical forecasting are changingthe way aftermarket manufacturers and distributors predictand keep up with consumer demands for unique features,styles, and performance options. Demand-driven forecastsare immediately propagated and translated across thenetwork to all relevant trading partners. Autonomousforecast adjustment determines where inventory should bemoved and generates orders for replenishment.Intelligent NEO agents compute dependent and independentdemand for aftermarket parts, embracing not just history, butall order forecasts by channel to provide a seamless demandsensing and consumption service. NEO agents continuouslymake autonomous demand and supply adjustments on anhourly or daily basis to ensure customer service levels aremet.Bring greater insight and alignment to business planningReal-time data, taken directly from planning and executionsystems, shortens business planning cycles and brings insightand alignment to the process. Using the Network to conductsimulations and impact analyses makes it easy to computedirectional profit and loss statements. The platform canmodel and store multiple scenarios at each business level,encompassing all or some of these plans depending on yourrole in the supply chain, including the demand plan, finishedgoods plan, production plan, raw materials plan, and logistics. One Network Enterprises. All rights reserved.Ensure customer service levels while optimizing inventoryinvestmentsThe objective of One Network’s Multi-Echelon InventoryOptimization (MEIO) is to maintain the desired customerservice level at each service location while optimizing theservice levels and inventory across the whole aftermarketvalue chain. Key capabilities include: Inventory optimization for multi-item, multi-echelonacross the entire real-time business network Clear visibility of network-wide and site inventory costsand fill rates per item What-if scenarios and simulations to help form the bestdecisions Recommendations for optimal stocking levels given targetservice levels and a broad set of constraints Intelligent NEO agents to manage autonomous demandpropagation and replenishment to fulfill the optimizedplansImprove fill rates and revenue by securing reliable supplyGain visibility into short- and long-term supplier capacityby automatically propagating actual scheduled demandthrough the supply chain and matching it to suppliercommitments—either as unit volume or as line capacity.Aftermarket businesses can secure supplier commitment asdemand levels fluctuate, to maintain stable production. Asyou introduce new products or features, the system supportsnetwork-based capacity planning and impact analysis to helpprepare for a broad range of what-if scenarios.5

SOLUTIONS FOR THE AUTOMOTIVE AFTERMARKET INDUSTRYDelight customers with unified order fulfillmentDramatically simplify and improve outbound service levelsby using the Network to create a unified customer orderfulfillment solution as part of your global supply chainmanagement platform. This includes order-to-cash capabilityand business workflows for receiving, processing, delivering,and invoicing customer orders.Follow the trail of each transaction, from beginning to endGain control and visibility over the entire life cycle of eachtransaction with full insight into cash flow and financialcommitments. One Network offers Source (Procure)-to-Payservices that integrate purchasing, logistics, and financialoperations into a single environment, so you can trackeach order from beginning to end. Services include supplymanagement, requisition, sourcing, order management,logistics tracking, invoice management, and data feeds topayables (external payment systems).Orchestrate inbound supplyOne Network’s Platform, together with its Intelligent ControlTower, offers a comprehensive platform for managing theflow of parts and components from supply to delivery. Takeadvantage of robust workflows for forecasting, planning,collaborating, executing, and delivering material orders. NEOoffers early detection alerts for material and logistics issues,as well as ways to identify, resolve, and automate issueresolution.Orchestrate MRO and ReturnsOne Network’s asset management network services facilitatereal-time MRO collaboration between parties to ensuredeliveries and tasks are completed on time. With sparesand repairables planning, asset and parts maintenance andmonitoring, lot and serial tracking, and asset managementfinancials, aftermarket parts and service providers canimprove performance, cost of service, and efficiencies insignificant ways.Meet fluctuating supply needs and reduce transportationcostsMake sure material supply meets fluctuating demand, andreduce transportation costs by maximizing container andshipment use. One Network aggregates demand, sourcematerials, and transportation requirements across thesupply chain, offering an integrated view of supply, demand,production capacity, and transportation across both internalmanufacturing operations and the external operations atsuppliers and service providers.Continuously and automatically reallocate materialsDynamically plan and execute “milk runs”—where consumedmaterial is replenished on a regular basis—according to realtime data. NEO intelligent agents reduce the risk of partshortages by autonomously matching demand and supplyaround the clock. As demand across each facility changes,NEO automatically reallocates materials in transit accordingly.Work with logistics providers in real timeOne Network’s industry-leading transportation managementsolutions offer unparalleled visibility for material and logisticsplanners. The platform integrates materials management andlogistics for inbound, outbound, international, domestic, andcross-border transportation, offering consolidated views thateliminate the need to manually track shipments via email andphone. Logistics features include global trade document andmilestone management, multi-modal and multi-leg shipmentvisibility, global milestone management, alerting, and thirdor-fourth-party logistics integration services. This functionalityis especially critical in pursuing global and emergingaftermarket markets.MULTI-PARTY BUSINESS NETWORK FOR THENETWORK EFFECTThe most important innovation affecting supply chainperformance is the sharing of applications, workflows, anddata on one common network. This produces “NetworkEffect” which is what allows the entire supply chain to beviewed, managed and optimized as one unified systemas opposed to many small enterprise-centric systems.Network Effect consequently drives value for all participantsin the network. Network Effect is particularly acute in theautomotive and manufacturing aftermarket sectors becauseof the massive numbers of parties involved in the collectivegroup of manufacturing sites, suppliers, logistics providers,and service providers.The total number of partners in a business network canbe thousands. Having all members on one backbone letsinformation flow throughout the network seamlessly andquickly. Thus, a problem anywhere in the network is quicklyrecognized and resolved in a fraction of the time of formerSOLUTIONS FOR THE AUTOMOTIVE AFTERMARKET INDUSTRY ONE NETWORK ENTERPRISES WWW.ONENETWORK.COM6

SOLUTIONS FOR THE AUTOMOTIVE AFTERMARKET INDUSTRYparadigms. This minimizes the “bull whip effect” - wherea small disruption in the supply chain gets amplified as ittraverses and affects the rest of the supply chain. The longerthe time for the original disruption to be felt elsewhere in thenetwork, the greater the amplification. Resolving small issuesbefore they become major problems requires real-time alertsand quick action -- one of the many benefits that Networksdeliver.One Network’s multi-party digital business network forAutomotive and Manufacturing offers a revolutionaryalternative to traditional supply chain management. Ratherthan requiring trading partners to integrate multiple timeswith multiple platforms, One Network’s NEO platform turnseach partner into a node (or a hub in a unique hub-to-hubarchitecture) on One Network’s Real Time Value Network.This massively scalable cloud-based architecture is absolutelynecessary given the large number of SKUs in play across themultiple stocking locations within the supply network. OneNetwork’s customers have been using the NEO cloud platformto manage and share POS transactions across thousands ofitem-store level combinations and in daily, weekly or monthlybuckets.Bringing the power of global networks to global businessThe Real Time Value Network connects more than 75,000companies and 16,000 carriers with a single connectionto the Network, so they each have real-time access to datafrom every partner across the Network, according to a welldeveloped permissions framework. It enables workshops,customers, distributors, OEMs, suppliers, and logisticsproviders to synchronize and optimize their entire supply anddemand network in real time based on a single shared versionof the truth.Multi-Enterprise Master Data Management (MDM)When connecting with customers and suppliers, the platformprovides the capability for organizations to keep their masterdata harmonized both internally and externally, in order toavoid expensive and time-consuming master data set-up andmaintenance problems. Data cleaning services are availableto rationalize not only all internal master data but alsocommunity master data. After trading partners have been onboarded once to the Network, master data is automaticallyavailable on the network to the enterprise with the simplechecking of a box. A “request assistance” capability allowsorganizations to manage requests to modify key master dataattributes, such as an item number or new vendor, through One Network Enterprises. All rights administrative service. This service provides workflowsfor approval and other associated requirements. The systemmanages and monitors the transfer of master data betweeninternal and external systems and data consumers. TheNetwork alerts users to any issues that require resolution.An extensible platform with powerful development toolsand transactional APIsThe platform also includes more than 950 public APIsand powerful multi-party development tools that allowthird parties to tailor existing applications and build newones. Together, the Network and this growing library ofsophisticated applications are transforming industries aroundthe world, while using the expanding trove of network data totrain NEO to autonomously make and execute better, faster,and more precise decisions.NEO AUTONOMOUS AGENTSAugmenting the benefits of the Network Effect are the NEOAutonomous Agents. Their ability to continuously monitor thesupply-chain wide network and to detect and resolve issuesproactively, is the most effective way to dampen supply chainproblems such as the “bull whip effect.” This reduces majorsupply chain costs such as expediting, unplanned overtime,and setups, and teardowns. NEO also identifies patterns,trends, and anomalies, and extracts insights to informexecution decisions, make recommendations and executethem. With the latest version of NEO, global manufacturersgain an unprecedented level of visibility, control, flexibility,efficiency, and the ability to coordinate multiple parties on asingle, shared version of the truth.PROVEN SOLUTIONS AND RECOGNIZEDLEADERSHIP FROM ONE NETWORKIndustry analysts have praised One Network’s innovativevision for supply chain visibility, collaboration, andautomation. Gartner has recognized One Network Enterprisesas a Leader in its “Magic Quadrant for Multi-enterprise SupplyChain Business Networks” report, as well as a Leader in theIDC Marketscape “Worldwide Multi-Enterprise Supply ChainCommerce Network Vendor Assessment.” The company alsoranked highest for the fourth consecutive year in NucleusResearch’s “Control Tower Technology Value Matrix for 2019.”Transform and Lead the Your Industry with One Network7

SOLUTIONS FOR THE AUTOMOTIVE AFTERMARKET INDUSTRYABOUT ONE NETWORKOne Network is the intelligent business platform for autonomous supply chain management. Powered by NEO, One Network’smachine learning and intelligent agent technology, this multi-party digital platform delivers rapid results at a fraction ofthe cost of legacy solutions. The platform includes modular, adaptable industry solutions for multi-party business thathelp companies lower costs, improve service levels and run more efficiently, with less waste. This SaaS and aPaaS platformenables leading global organizations to achieve dramatic supply chain network benefits and efficiencies across theirecosystem of business partners. One Network offers developer tools that allow organizations to design, build and runmulti-party applications. Leading global organizations have joined One Network, helping to transform industries like Retail,Food Service, Consumer Goods, Automotive, Healthcare, Public Sector, Defense and Logistics. To date, more than 75,000companies have joined One Network’s Real Time Value Network (RTVN ). Headquartered in Dallas, One Network also hasoffices in Japan, Europe, and India. For more information, please visit Network EuropeOne Network India Pvt LtdUS Corporate HeadquartersPO Box 59383London NW8 1HH, UK4055 Valley View Ln, Suite 1000Dallas, TX 75244 44 (0) 203 28 66 901 europe@onenetwork.comWestend Centre III, Survey No. 169/1,Second Floor, South Wing, Sector 2Aundh, Pune 411007, Maharashtra, India 1 866 302 1936 (toll free) 1 972 385 8630 www.onenetwork.comOne Network Australia/Asia-Pacific 61 401 990 435 91 20 49111800 indiasales@onenetwork.comOne Network Japan utsu@onenetwork.comSOLUTIONS FOR THE AUTOMOTIVE AFTERMARKET INDUSTRY ONE NETWORK ENTERPRISES WWW.ONENETWORK.COM8

AFTERMARKET PARTS The aftermarket auto parts sector is expected to grow at more than 3% per year until 2030 . In the US, the average age of the cars on the road is reaching 11.8 years, and between 2018 and 2023 the number of cars between 6 to 11 years old will increase by 27% - fueling growth in the aftermarket sector. In

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