The Evolution of the European Automotive Spare Parts Distribution Market

For several years now, the European automotive after sales market has been going through widespread change as a result of the many mergers that have arisen in this sector. Existing networks have been evolving, moving towards an ever-greater degree of concentration. In the year 2002, the Block Exemption Regulation is due to expire, and this should lead to the distribution market being opened up to independent networks. The present study analyses the state of this market, as well as the major European car manufacturers’ strategies for coping with such economic changesOPEL3

Opel’s, spare parts distribution organisation’s objectives are to create a Dealer Parts Replenishment system (like Saab’s), establish a virtual warehouse that links up its dealers, and to only have to deal with a single type of order, i.e. with all of its orders revolving around replenishment operations.

The general policy is that each dealer must have a minimum of 2,000, and preferably 4,000 references on stock. Furthermore, Opel produces 40 % of its own spare parts, with specialised parts manufacturers making the other 60%.

Opel's internal stock management system is called Catalyst. All of the other systems have been developed by EDS.

Opel Europe

Opel Europe has four central warehouses on its car production sites in Spain, England, and at both sites in Germany.

74Supply Chain F orum An International Journal N°1 - 2000 www.supplychain-forum.com

V.A.G. Germany

V.A.G. France

V.A.G.Dealer 220

stock of 8 days

V.A.G.

V.A.G.

Agents

Agents

SAP/EDI

- France Express

KEYS

Information Flows Physical Flows

Sernain TAT

Source : Dalfa Dealers

Wookly Orders Dolivery wook wook

Orders 90% 12.00 am 10% 03.30 Delivery In.184 08.30am Third party providers:

Orders B4 16.00 am Delivery D+1 B4 10:00 am Third party provides : TAT, TNT, Askar Gerposa, Parts Express

Monthly Orders Order fixed limit date Delivery D+4

GM AgentsGM Agents KEYS

Source : Dafsa, GM France

GM information system

GM French DC GM Italian DC

GM European DC (5)

GM Dealer

GM French Dealers GM Italian Dealers

Information Flows Physical Flows

Figure 9 :VAG France

figure 10 :GM Europe

The two German warehouses have a total floor space of 450,000 m2. In addition, there are a number of externalised warehouses. The total number of stocked references is 250,000 and 150,000 lines are prepared daily for delivery to dealers. Some 1.200 employees work in these warehouses.

The total warehouse floor space in Spain (Zaragoza) is 48,000m2. In addition, 150,000 m2 floor space has been externalised. The total number of stocked references