{"id":9878,"date":"2021-02-21T16:55:58","date_gmt":"2021-02-21T15:55:58","guid":{"rendered":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/?p=9878"},"modified":"2021-02-21T16:55:58","modified_gmt":"2021-02-21T15:55:58","slug":"parts-2","status":"publish","type":"post","link":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/2021\/02\/21\/parts-2\/","title":{"rendered":"The end of the independent parts distributor as we know it?"},"content":{"rendered":"

A seismic shift in how parts are identified and get to the shop is on the horizon. Just when might we see that change?<\/span><\/p>\n

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Finding the right replacement part is imperative to a smooth and streamlined service event. After all, if the part isn\u2019t right, it will cause repeat comebacks and added downtime.<\/span><\/p>\n

Historically, a fleet has relied on the in-person relationship with its independent parts distributor\u2019s sales account manager to help identify those used parts and assist with sharing insight on the appropriate replacement. The relationship is a benefit to the parts distributor because they have the opportunity to provide a solution to the fleet and foster a long-term, mutually beneficial working relationship.<\/span><\/p>\n

\u201cThere’s this growing separation between the buying habits of society in general and the way the heavy duty parts distribution channel works,\u201d says Jamie Irvine.<\/span><\/p>\n

Irvine started his career serving the heavy duty industry in 1998, including years working for a large U.S. parts distributor. Most recently, he hosts an industry podcast,\u00a0The Heavy-Duty Parts Report<\/a>, talking with manufacturers and suppliers in the heavy duty vehicle industry to share insights with fleets on how to lower total operational costs.\u00a0<\/span><\/p>\n

Today, 49 percent of parts are purchased over the phone, Irvine notes. That will inevitably continue on a downward trend as buying habits continue to shift to more online purchasing through ecommerce \u2013 only expedited further in the wake of the COVID-19 pandemic. While the heavy duty parts industry isn\u2019t there yet, Irvine believes a monumental shift will occur over the next decade.<\/span><\/p>\n

Demographics and technology<\/span><\/h3>\n

What happens when those industry experts behind the parts counter (or on the phone) with decades of experience begin to retire in droves? Well, that shift has already begun, and there is a lack of incoming new recruits to take over those jobs.<\/span><\/p>\n

\u201cWe haven’t been hiring enough people to replace the ones that are leaving, and we haven’t for the last 25 years; we just have a demographic issue that cannot be overcome,\u201d Irvine emphasizes. \u201cNo amount of training, no amount of rapid hiring, no amount of recruitment out of college is going to solve this problem fast enough. It is a people problem, and the only solution is not with more people, but with data.\u201d<\/span><\/p>\n

This demographic shift is driven by the retirement of baby boomers who hold vast amounts of institutional knowledge about the industry and parts identification, and the influx of a younger generation who grew up with technology taking on leadership roles in the fleet industry. These leaders want to utilize technology in their own shops to streamline processes, which will also address the shortage of potential employees entering the shop.<\/span><\/p>\n

The value proposition an independent parts distributor offers is two-fold: they can help the fleet identify the part, and they can get it to the fleet in a timely manner. But what if technology could go far enough to help meet both needs, without having a physical retail location?<\/span><\/p>\n

\u201cThe goal of everybody on the technology side is \u2018let’s take away the power from the parts guy and give it to the end user,\u2019\u201d Irvine says. \u201cNot because we want to take it from them, but because they’re all leaving and there are so few good parts people, knowledgeable parts people.\u201d<\/span><\/p>\n

A step into the future<\/span><\/h3>\n

\u201cPeople need to be able to look up their own parts,\u201d said Tyler Robertson, founder and president of Diesel Laptops, during a Heavy Duty Aftermarket Dialogue panel discussion. \u201cWe’re investing heavily in that area to try to facilitate that.\u201d<\/span><\/p>\n

In October 2020, Diesel Laptops launched Diesel Parts, which combined the functionality of its then-separate truck parts lookup tool and parts cross reference tool, along with other various features. Most notably, if a fleet doesn\u2019t know the part and needs to find more information, the platform can assist with IDing the part through four key features:<\/span><\/p>\n