What is the APM© Program?

About APM©

The APM© methodology is a comprehensive approach towards managing the business of marketing spare parts. The methodology is applicable to businesses which are either distributors or manufacturers of products that have an after-sale market such as vehicles, consumer appliances and industrial / commercial machinery.

By applying the methodology, businesses can achieve a sustainable competitive advantage in spare part sales. This is done through the application of a comprehensive set of practices, IT tools and training sessions, designed to dramatically upgrade your ability to profit from after sales.

APM© was developed on the basis of CRM (customer relationship management) theory – specifically customer lifecycle value, consumer behavior theory and retail marketing theory. The practicalities where hammered out in a series of projects done in the automotive and consumer products markets.

Critical Business Issues that APM© Addresses

APM© addresses the following business critical issues for after-market profitability:

• Market Analysis: The "Profit Opportunity Map" (POM) allows businesses to gain in-depth understanding of their market base and profitability. Questions such as:
  • Where am I losing customers?
  • How much money am I losing from low maintenance rate?
  • What is my market share in damage repair parts?
  • Get answered in multidimensional detail – by vehicle type, vehicle age, entry type and part type.
• Pricing and marketing strategy: The "Map and act" methodology to part management applies mass retail principles such as, price sensitivity, part segmentation and value to the customer, to part management. Thereby allowing businesses to dynamically map part behavior against expected sensitivity, pricing strategy and marketing programs.
• Internal management: A functional transformation of the after-sale operation from a logistics oriented distribution operation to a full business oriented marketing unit. Aligning goals, processes, IT tools and incentive programs to support continuous methodological achievement of business objectives.
• Dealer network management: The dealership network is the critical link to the end customer. It is imperative to effect a transition from the traditional focus on service and professionalism to a broader view of the service centre as a profit centre. One that is proactively managing interactions with customers aimed at maximizing the utilization of customer potential while improving retention rates. This is done by the initiation of:
  • Network Incentive programs
  • Joint marketing initiatives
  • Dealer Network - Distributor integrated IT tools
  • Processes and training for network service centers designed to improve both dealership and distributor profitability from spare part sales.
• Inventory management and control: By tying the inflow inventory systems' parameters to the in-depth understanding of vehicle customer base and part purchasing behavior, businesses can gain a unique competitive advantage in keeping inventory costs low and dead stock to a minimum. The same knowledge used to perfect pricing strategy and control is used to create efficient purchasing strategies designed around the concept of product life

Features and Benefits of the APM© Program

For more information on how NG Group Automotive Consultants can help you increase your spare parts sales, please Contact Us.