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Other Digital Disruptions in 2030: A $30B Opportunity
Digital supply chain
The digital supply chain in
the auto care market is driven by several game-changing and high-impact enablers,
including automation of planning and operations, distributed order management, and cloud logistics and
information platforms. Key enablers will be no-touch order processing, advanced data capabilities and
information platforms, and auto replenishment.
Economic value will be driven by:
Smarter inventories at all layers in the industry (manufacturers, B2B wholesalers, and repair shops)
lowering the carrying costs;
Increased repair efficiency allowing customers to spend less time on repairs; and
Faster turnaround of parts improving repair efficiencies of technicians.
Connectivity for quality
Connectivity for quality enables three primary benefits that are driven by a wide range of enablers across
in-car technologies, infrastructure and back-end processes.
These include:
Warranty cost reduction, in which vehicle data could identify root causes of component failure and drive
warranty claim investigations, thereby reducing or eliminating fraudulent claims.
Early recall detection and over-the-air updates, in which potential issues with “manufacturing batches”
can be promptly identified allowing part manufacturers to provide over-the-air recall updates and prevent
more “bad” products entering the market.
R&D feedback, in which component usage and wear data could be used to improve the design of future
products as well as accelerate the future R&D cycles.
Predictive maintenance
Connectivity for predictive maintenance is driven by a wide range of enablers across in-car technologies,
infrastructure and back-end processes.
Regulation of vehicle data ownership could influence how customers provide vehicle data access to the
independent aftermarket.
Additionally, the level of connectivity and willingness of customers to listen to predictive maintenance push
notifications are primary factors influencing the economic value creation.
Predictive maintenance will reduce catastrophic repair while increasing maintenance spend, shifting the
demand mix for specific part-types. It is likely to become a strategic control point for various players in
the future of the independent aftermarket.
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