Welcome Address by Graham Scudamore Smith, President, AAAA and Stuart Charity, Executive Director, AAAA Minister Address by The Hon Michael Sukkar MP, Federal Member for Deakin, Assistant Minister to the Treasurer
The ACCC has developed a strong interest in our sector over the past 24 months; increased monitoring of anti-competitive trends, new car sales enforcement action, capped price servicing investigations, warranty enforcement undertakings and investigations into log book servicing. In 2017, the ACCC completed the most comprehensive review of competition and consumer issues ever undertaken in the new car retailing industry including independent workshop access to dealer level repair and service information. In this presentation ACCC Chairman Rod Sims will outline how nation’s competition watchdog sees our industry, the level competitiveness of our sector and how they monitor specific areas of anti-competitive and anti-consumer behaviours. Find out what the ACCC intends to do to ensure that the independent aftermarket can have confidence in a future in which consumers are able to exercise choice of repairer and parts, a future in which fair and open competition is monitored and enforced.
The automotive aftermarket is characterised by very large product ranges with lots of very slow moving parts, often with pack sizes and MOQs, and long lead times. The risk of creating obsolete stock is very high, and this is made even harder by the difficulty of making the thousands (even millions) of decisions that are needed to effectively manage product as it nears end of life, and ultimately to decide when to exit products from the product range. To paraphrase the song, you’ve got to know when (and how) to hold ‘em. This presentation will describe a series of techniques to help manage portfolios of slow moving parts to help gently and profitably wind back stock levels as product sales decline, such as Dynamic Supply Chain Reconfiguration, cross dock optimisation, automated alternative supplier selection, rules based categorisation of products leading to the right pricing response to maximise gross margin, and automated excess re-distribution. However ultimately you have to know when to fold ‘em, when to stop selling the product. It is important to be disciplined and clinical, and we will introduce a new approach which uses VOR data so that you can set policies like, “I don’t want to stock a product if it has more than a 60% chance of making a loss.” These innovative, world leading approaches have emerged from a partnership between the Auto Parts Group and Horizon Inventory and can take product end of life calculations and decisions to a whole new level. You don’t of course want to only recognise you have loss making stock when it is on hand. That is too late. The trump card in the pack that these new capabilities represent will enable people to avoid ordering the stock in the first place. We will also share the hard earned lessons into how to use external data most effectively, so that in the game of chance that is aftermarket inventory management, you can play a far better hand.
Bosch believes the future of mobility will be electrified, connected and automated. As both a leading supplier to car manufacturers and with a large presence in aftermarket, Nikki will discuss the likely impact on the aftermarket industry from a supply chain and workshop perspective.
Saul has been described as the most ‘pre-eminent macro-economist in Australia’. His extensive knowledge comes from monitoring, analysing and predicting trends in the Australian economy as a core part of his numerous roles as Chief Economist for well over 25 years. In this presentation, Saul ties together macroeconomic data and complex fiscal policy to provide valuable insights into how current economic trends can impact your business.
With the American right to repair battle in the rear-view mirror, Senior Vice President of the Auto Care Association, Aaron Lowe will assess how the automotive industry is complying with right to repair requirements and outline the battles that lie ahead due to the advent of emerging technologies. Number one on the list of issues facing the independent auto care industry is telematics; and ownership and control of data. This complex issue touches on car owner privacy and competition; threatening to provide vehicle manufacturers with extensive power over the repair market by permitting them to harness the enormous amounts of data available from vehicles. Lowe will discuss the positive and negative impacts telematics could have on the independent auto car industry and its customers, the car owner. An immediate threat to independents is occurring as vehicle components move from being mechanically driven to software driven. Aftermarket companies attempting to provide competitive replacement parts and repair tools are now finding themselves struggling with protections under copyright law that never were contemplated to address issues related to access and use of the embedded software now found on most vehicle components. Lowe will outline the battle now growing in the U.S. over who really owns the software on a vehicle, the vehicle owner or the manufacturer.
You can never know too much about the customer and the information in this presentation will open your eyes, help you win business and grow your bottom line. This presentation – based on research undertaken on behalf of the AAAA – will provide you with a complete understanding of the workshop customer; how do they decide which workshop to visit, what factors are critical to customer satisfaction, loyalty and recommendation, the importance of price relative to other considerations on which workshop they use, views on fixed price servicing, perceived differences between independent and dealer workshops and lots more.
This presentation will include: • The Amazon Effect in Australia • What’s all the hype about and why you can’t ignore it • What we can learn from Amazon • How will Amazon affect the auto aftermarket • What’s worked in the USA and the UK • Considerations & Recommendations for right now
Choice of repairer, choice of parts, capped price service programs, consumers’ rights to warranty repairs and access to technical information. These issues are not restricted to the Australian industry. Aftermarket parts producers, distributors and repairers have been working together globally to advocate for fair and open competition. In this session, Aaron Lowe (Autocare Senior Vice President, Regulatory and Government Affairs) and Lesley Yates (Government Relations and Advocacy – Australian Automotive Aftermarket Association) will provide a scorecard on the Global efforts to support consumer choice and fair competition in the Automotive Aftermarket. Aaron and Lesley will provide an update of international achievements and host a discussion on the tactics that are currently employed to deny independents the right to repair and deny consumers the right to choose. Every market is different and the tactics are unique to each country. But all dysfunctional markets share some common elements of misleading consumers and denying information and data to small business. What are the strategies and tactics that aftermarket parts producers, independent repairers and consumers can use to effect change? What are the best ways to engage in campaigning and achieving fair and open competition in our industry?
The auto industry is poised for more change in the next couple of years than it’s had in the past 50 years. This is the generation of the Tech Revolution where the customer is more in control than ever. Engineering excellence is no longer enough in automotive, you also need to be a digital innovator: How embracing technology in auto is smart.
Drawing on the quarterly AAAA Aftermarket Dashboard, this presentation will provide insights into macro trends in the economy that are disrupting the Australian automotive industry, using benchmarking data to explain how workshops are performing in this changing climate. It will unpack the complexities of the Australian car parc, and how this is changing in line with evolving consumer demand. It will then dive into forecasts around the future of the automotive marketplace, referencing the latest Australian and international research into future vehicle trends to predict the impact of electrification and autonomous on Australian manufacturers, distributors, retailers and workshops over the next five years and beyond.
Bernard Salt is widely regarded as one of Australia’s leading social commentators by business, the media and the broader community and is one of the most in-demand speakers on the Australian corporate speaking circuit and has been so for more than a decade. He is perhaps best known to the wider community for his penchant for identifying and tagging new tribes and social behaviours such as the ‘Seachange Shift’, the ‘Man Drought’, ‘PUMCINS’ (pronounced pumkins) and the ‘Goats Cheese Curtain’. He was also responsible for popularising smashed avocados globally. In this presentation, which is targeted at retailers, media & marketing professionals and FMCG manufacturers and distributors, attendees will better understand the megatrends and the micro trends shaping the customer base.
Digital intermediaries have infiltrated many sectors, but do they disrupt or enable industries and what impact do they have on competition? Tourism was the first to see the rise of Online Booking Websites (intermediaries) and I will look at the impact and transformation of the industry and how consumers have evolved over the past 17 years. I will also look at TripAdvisor, initially despised by hoteliers; I will give real-world examples of how boutique and independent hotels have performed versus the major chains when leveraging this platform to stimulate growth. Then I will focus on the restaurants and cafes and discuss the impact sites like menulog.com.au and eatnow.com.au and how the rise of delivery services like Deliveroo and UberEATS has effected sector growth. This talk will be insightful and balanced, using sector and industry data to dispel the hype and look to uncover the impact digital intermediaries have on established sectors. Then I will discuss the current and future state of the Automotive Repair Sector and give my opinion of the role Online Directories (Yello’s, True Local and Local Search), Marketplaces (OneFlare & AutoGuru), international sites (Openbay.com, RepairPal.com, Whocanfixmycar.co.uk, CarDash.com) will play over the next ten years.
In order to achieve scale, many businesses pursue a growth strategy that involves engagement and transactions with international markets. A key characteristic and potential barrier to success the international trade in goods relates to the ability to manage cross-border supply chains. Large firms typically have substantial financial, human and information based resources to apply to international supply chains in order to minimise cost and inefficiency. SME businesses however tend to be highly reliant on ad hoc or high level service provider assistance, which may or may not be adequate in achieving necessary cost and efficiency outcomes. The session will explain some of the main commercial and regulatory issues for SMEs in international supply chain management from both an import and export perspective and offer observations on cost and risk minimisation in international trade.