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    Automobile | Accessories

    Automobile | Accessories

    I) Challenges faced by Automobile/ Accessories Industry

    #1. Organizing Operations

    Organization of operations in terms of sales, accounts, purchase and marketing and other everyday operations is a hurdle for the accessories and automobile industry. Auto part manufacturers in the US alone combine a USD 250 billion in annual revenue. Manufacturers include a wide range of automobile parts and components for engines, transmissions, braking systems, powder trains, steering and much more.

    A consolidation of car companies has resulted in changing dynamics. Self driving cars, globalization, expansion into fresh markets and increased demand for auto parts due to higher number of older vehicles in operation are all contributing to a competitive auto manufacturing sector. So an automotive management consultant can serve to boost your automobile business by working on SOPs for every section of the manufacturing process.

    #2. Reducing Costs

    A big problem faces automotive companies when it comes to the management of spiraling costs. There is an urgent need for cost reduction. Manufacturers are observing a downward pressure on pricing from automotive clients. The automobile and accessories industry now has to get creative to search for ways to reduce costs and increase efficiency and productivity. For this, SOPs are essential to manage costs effectively and set pricing mechanisms for optimal returns.

    #3. Using New Technologies

    Many new technologies improve efficiency, reduce manual labor and reduce waste. This includes modern ERP systems connecting different aspects of the business from receipt of raw materials to inventory, purchasing and finance. CAD integration with ERP business systems and the use of 3D printing machines can reduce costs and increase or maintain component complexity.

    When paired with machine and ERP data, advanced analytics software can facilitate the understanding and predict production failures. This can also serve to reduce downtime and guide demand over time.

    But for effective technologies to be implemented in a way that utilizes their true potential, whether you’re a dealer or a manufacturer in the automotive industry.

    #4. Setting Up a Brand in a Competitive Market

    Setting up brands in a competitive market is essential, especially when brands are strengthening day by day. Finding new markets and expanding new niches is easier, when you have a top automotive consulting firms at the helm. For auto parts manufacturers, skills and equipment for auto parts are specialized. Customer diversification provides long term stability for the automotive industry. Automobile Dealers & Distributors (i.e. Vehicle, Auto parts & accessories dealers & distributors) still remain the major channel of sales. Automotive dealership consulting firms with the right skills can help dealers to set up flawless automotive SOPs for effective adoption of technology. For Auto Dealers & Distributors, retail business consulting holds immense value.

    #5. Customer Relationship Management

    Customer relationship management is essential for effective growth and sizeable profits. But CRM is not simply a matter of setting up a database or using a piece of software. You also need clear standard operating procedures to streamline the processes by which customer data can be aggregated and deployed in an insightful way.

    #6. Skilled staff for upselling and cross-selling

    Getting skilled staff who can upsell and cross-sell better works really well, provided you can develop the right selection, recruitment, training and analysis tools. Automobile and accessories industry comprises businesses that need the best and brightest talent to survive and thrive.

    #7. Better Inventory Management

    Effective management of stock serves to increase the stock turnover ratio. Like all other industries, automobile and accessories businesses too experience their share of ups and downs. Overcapacity can be a real problem, when manufacturers have invested in resources such as materials and payrolls into building a certain quantity, only to discover that they do not need to produce as much as planned for.

    The result is over-expenditure that serves to damage cash flow and results in waste. Overcapacity can be avoided by automotive SOPs that increase how responsive the production floor is and the best ways to master production scheduling are now within your automotive firm’s reach.

    #8. Use of SOPs and Adoption of Technology

    So, whether it’s adoption of technology to drive sales, or better inventory management, SOPs can be effectively integrated with software to develop the digital capacities of your automobile or accessories firm.

    #9. Value of an Omnichannel Approach

    The omnichannel approach can serve to develop a stronger platform for automotive and accessories companies to extend their reach to B2B and B2C customers alike.

     

    II) How YRC Management Consulting Can help

    YRC Management Consulting can help the automobile manufacturers & dealership companies to streamline their operations & impart excellent customer service. Specifically for Automobile Industry, Your Retail Coach offers designing of SOPs across all major functions of business. YRC has helped numerous Automotive Dealers looking for SOP for a retail store. YRC is also amongst the top automotive dealership consulting firms and comprises talented automotive dealership consultants and dealer consulting services. For quality automotive management consultant teams, look to YRC’s exceptional and adept team of skilled specialists and strategists.

    III) About Automobile & Accessories Industry

    The automobile industry is a key industry driving the economies of the world. The economic growth of the sector is advancing with the evolution of passenger and commercial vehicles manifold over the years. China, USA, Japan and India are the world’s top consumers of automobiles . As per Statista, global passenger car sales are forecast to hit 78.6 million vehicles in recent years.

    The largest automobile and accessories markets are in China and the United States. This is in terms of production as well as sales. With new global initiatives such as the Paris Agreement, several countries across the globe are enacting stricter emissions controls on new vehicle models. Automakers are beginning to expand into the electric mobility sector, with Germany leading the way with electric car production to reach 1.3 million units by 2021.

    Additionally, internet-connected car technologies and autonomous vehicles are stirring up another revolution in the automotive sector. Some 40% of respondents indicated they will use fully autonomous cars, as they consider these to be safer than conventional cars.

    Reports also point to the international market for autonomous driving hardware components to grow from 400 million US dollars in 2015 to 40 billion US dollars in 2030. Manufacturing of automobile parts is yet another thriving sector in this industry. But where there is growth, there are also challenges.

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    We work only for Visionaries.

    PROCESS AUTOMATION

    The idea of having Ecommerce Consultants on-board from the beginning itself points towards reducing the involvement of the promoters in daily operations. Ecommerce Businesses willing to be a brand reaping profits & sustaining the competition must ensure that most of their processes should be automated. The more the manual intervention, the more would be the errors.

    In Ecommerce business, you get only 1 chance to impress the customer & if you mess up there, you lose the customer for long.

    Process automation in respect to all the activities pertaining to customers from order receiving to order fulfilment is a must for a seamless experience for the customers.

    Task Management is another grey area where most deadlines fail as 90% of the tasks are assigned manually & are forgotten, unheard, misunderstood or mistaken.

    YRC Team of Ecommerce Management Consultants helps to make maximum of the processes system-driven to ensure minimalistic manual intervention.

    VIDEOGRAPHY & PHOTOGRAPHY

    No matter how good your product is, the customer would know only if it looks good.

    Photography includes the following steps:

    • Cataloguing your products
    • Cataloguing your images
    • Backup your images (A few cloud storage solutions include Dropbox, Google Drive, Bitcasa, Apple’s Cloud Storage etc.)
    • Choose the right camera & lens (You may also outsource the photography to a third party agency)

    DIGITAL MARKETING

    Digital Marketing includes SEO & SMM. SEO i.e. Search Engine Optimization includes activities like back-linking, meta tags, blog-writing etc. to ensure your website ranks on the 1st page on Google Search.

    Next comes SMM i.e. “Social Media Marketing” which as the name suggests including promoting your products on all the social media sites, email marketing, influencer marketing & several other BTL activities.

    These activities are going to be recurring & would decide the traffic on the website, the conversions, whether the right target market is tapped, the likes, the views, the orders, the reviews & much more. YRCs Ecommerce Consultants create a budget for digital marketing right from pre-launch to launch & for each month thereafter.

    Building digital marketing strategies in coordination with the agency, selecting them to signing them off would be the role of YRC.

    This ensures seamless coordination, detailed interactions & desired execution as it is always advisable to work with a single agency than multiple of them.

    IT INTEGRATION

    Selection of the right software for smooth functioning of back-end operations right from production to webstore display would be suggested and integrated by YRC Team.

    YRC’s Team defines SOPs of Product Movement, maps it with the locations & people. They then create a blueprint of all the features required in the software & help in shortlisting & selection.

    IT Integration involves connecting your offline inventories with real-time online webstore so when a sale occurs, inventories get deducted real time across offline as well as online platforms.

    This helps in accurate inventory management, maintaining the MOQs, re-order levels & achieving the optimum inventory levels.

    Some popular software include unicommerce, viniculum for your front-end website management & Genisys for your entire back-end Purchase, Production, Accounting, Invoicing etc. management.

    WAREHOUSE & LOGISTICS PLANNING

    • How many cities or countries you wish to sell in?
    • Where should your Warehouse be located?
    • Should you have one warehouse in each country or city?
    • Should you be having your own delivery team in your base city?
    • Would the 3rd party vendors be reliable? What happens when they lose or misplace your product during delivery?
    • How should I manage the logistics if my goods are coming from different countries?
    • How should the goods be stored and barcoded?
    • How much space do I require for warehouse?
    • I am sure several such questions must be haunting you while you think of starting your own fashion ecommerce brand.

     

    At YRC, our warehousing and logistics experts can help you devise a strategy for all of the above mentioned queries and much more.

    We design the layout of the Warehouse considering the inward, goods processing, software entry, barcoding, outward, goods return, scrap storage, goods stacking & much more.

    Logistics route plan is devised considering the manufacturer to your warehouse and from there to last mile delivery locations.

    UI & UX DESIGNING

    This Step involves 03 distinct parts:

    Part 1: Choosing the right Platform:

    From several platforms available in the market right from Shopify to magento, woocommerce, prestoshop, wordpress etc. you must choose the one that fits best for your business

    Part 2: UX Designing:

    “UX” denotes User Experience, which if put in simple language is building the functional requirements of the website.

    UX Designing includes designing the features required in the website, customer journey map, website features, the browsing features, navigation features, ecommerce order management process flow, checkout cart features, catalogue management, ecommerce payment system, cross selling features & much more.

    “As per statistics, 68% of the customers abandon the carts before payment”

    An interesting UX ensures the customer sticks on to the website for a longer time.

    Part 3: UI Designing:

    UI stands for User Interface, which means designing the look and feel of the website. UI includes using the right colours, elements and the entire aesthetics of the website.

    A good User Interface ensures the user completes the task that he has come for. It navigates the user through the journey of the brand in the simplest but most effective way.

    The UX designer maps out the bare bones of the user journey; the UI designer then fills it in with visual and interactive elements.

    If User experience is the bare bone, user interface wraps it up with an attractive cape.

    At YRC, our team if experts can help you develop the entire User Journey to ensure it is engaging!

    SAMPLING & PRODUCTION

    This step follows the “Designing” Phase, whether you have an in-house design team, freelance designers or an outsourced design company. It is one of the most exciting phases, as here you see your designs turning into products & your ideas turning into reality.

    In most start-up cases, production is outsourced i.e. brands tie-up with the established manufacturers/ job-workers to get their products manufactured.

    Sampling involves multiple 04 Stages, Fit-Sample, Prototype Sample, Pre-Production Sample & the Production Sample.

    Prototype Sample is the first sample provided to the buyer. It can be in any fabric/ colour. This sample is just to understand whether the product design looks equally great in reality.

    Fit Sample, as the name suggests is prepared to check the fit of the garment i.e. the various sizes, length, width etc.

    Pre-production is made by the actual production line. Here the stitching quality and other aspects related to manufacturing are checked. This is the last stage where rejection can be accepted.

    Production Sample is made before the production which is the replica of what is going to be finally produced.

    Once you are through with all this, you are good to go ahead & get your goods manufactured.

    PRODUCT DESIGNING / SOURCING

    Product Designing or Sourcing is the heart of the Ecommerce Fashion Brand.

    Product Designing / Sourcing can be done in several ways, as follows:

    • In-house Design Team
    • Freelance Designers
    • Outsourced Design Team
    • Ready Product Sourcing (From Manufacturer or Wholesaler)

    At YRC, we evaluate your business strategy & business model to arrive at the decision, which of the above ways would be best-fit for your business. In certain cases, product sourcing may be a combination of the above.

    These are the people who are going to build your brand! Whether they are the designers or merchandiser, your brand look is going to be in their hands.

    If you are designing each garment from the scratch, the sourcing would play crucial role in developing design identity of your brand.

    Sourcing includes fabric, trims, lining & all the raw material required to build the garment.

    BRANDING

    Branding is the “Look of the Brand”, right from logo to tagline, the colours used, the brand story, the brand communications on social media, the packaging & all the other aspects which speak directly or indirectly to the customers. Branding constitutes the look & feel of the brand & hence must be thoughtfully planned to match with the product that we are selling.

    Branding must appeal to our target audience. Example : A golden colour logo depicting finesse, art, richness, premium, however beautiful it may be individually cannot go with a brand selling affordable kids wear products. So, your logo must be in-line with your brand positioning, whether you are an expensive brand or a luxury brand or a value for money brand, it must be depicted from your “Branding”.

    It is an integral part to attract the target audience.

    ORGANOGRAMS & SOP’s

    Organogram is the “HR Blueprint” of the business which is created at the onset, to map out the team required across each function at various stages of the business. At the launch, only key people need to be got on board to ensure the project gets started & at this stage, all of them need to multi-task. Similarly, certain financial as well as operational goals are set for addition of the further team. Example, for the operations team, we hire 1 operations manager during the pre-launch phase & we add 1 more only when the business kicks-off & we reach a volume of selling more than 1000 pcs/ month or a turnover of more than 0.1 million USD.

    SOPs are Standard Operating Procedures, a bible to run the entire organization right from Sales, Purchase, HR, Order receiving to Order fulfilment, Inventory Management, Accounts, Warehouse, Logistics, Supply Chain, Production & all the other relevant functions for the business. Business must be organized from its first day of operations; only then the tasks can be delegated.

    At YRC, we design the organization structure, the processes, and approximate time taken to execute each process, job profile of every member within the organization, their KRAs, KPIs & the Reporting Structure.

    CRITICAL PATHWAY

    Critical Pathway Analysis (CPA), is a project management technique which cannot be overlooked while launching an ecommerce fashion brand. Brand launch process is cumbersome with multiple inter-dependent & time-bound tasks involved, which need to be tracked to ensure the project remains on track.

    CPA outlines key tasks across the project, their turnaround time (TAT) & the dependencies of tasks upon each other. It identifies the sequence of tasks, their interdependent steps from inception to completion, their criticalities, and their dates of onset, target dates of completion along with the key responsible person for the respective activities. Critical Pathway helps in understanding the unimportant & not urgent tasks which may jeopardize the execution of the project because of an unexpected snag! It also maps out the potential bottlenecks which might be posed because of the dependencies of tasks upon each other & cases where the next task cannot be commenced before the completion of the previous one.

    CPA detects the minimum & the maximum time involvement of a particular individual or team to execute the task, thereby arriving at the overall deadlines associated with the project.

    At Your Retail Coach, we design the Critical Pathway & review it periodically to ensure the project is on track & the progress is measurable.

    BUSINESS STRATEGY & BUSINESS PLAN

    Business Strategy includes the vision, mission, goals, business model, business plan & strategy for all the functions within the organization.

    Business Strategy is a well-defined plan that outlines who, what, where, why, how & when for the company; for example, who would be the target market, how to attract the target audience, when to launch new products, where to operate from, how to handle competitors, what would be the USP, what would be long term goal of the organization & several other answers to the 5Ws of Strategy.

    Business Strategy aligns the organization towards a common goal. Business SWOT helps company to identify & overcome their weaknesses & focus to sharpen the strengths. Business strategy forecasts future risks and helps business in building skillsets to overcome the potential threats.

    YRC’s Business Plan focuses on creating a “Blueprint” of the business, thereby deriving the feasibility of the concept & gauge whether the opportunity is lucrative to invest time, energy & effort. Business Plan creates cash flow understanding i.e. building inflow & outflow cash projections from Week zero to week 60 i.e. 05 year projection. Business Plan calculates the capital investment, operating costs, one-time costs, recurring costs & all the other numbers relevant to obtain the breakeven sales, return on investment, return on capital, internal rate of return & several other ratios. Business Plan is also one of the important requirements if you are targeting the “Investor Route”. Fund raising becomes extremely transparent & channelized. With business plan panned out clearly, the business will know until what point must it be stretched & where to stop, which reduces the probability of unplanned investments.

    MARKET RESEARCH

    Starting the concept of Ecommerce Fashion brand with Market Research ensures we get detailed understanding of the industry & this research report also acts as a social confirmation for your concept. Market Research helps in understanding the target locations, their population, potential online buyers for your product, competitors for each category, and top selling products of the competitors, competitors’ price range, offers & their responses & much more. Market Research helps in thorough understanding of your brand position as compared to our competitors. It helps in identifying gaps in the market, in your category along with the scope of the said product in the desired market. This will help in validation of your concept & prevents you from making the same mistakes as your fellow brands, eventually saving your time, energy & efforts. This phase is also a make or a break phase, as the market research study may at-times come up with some eye-popping numbers & statistics which might compel you to re-think on your product or category that you are planning to sell or alter your entire concept itself!! Market Research Reports analyse the competitors’ webstore for their traffic, conversion & sales. This is extremely valuable information to derive our inventory budgets & projections, which takes us to our next phase.