The pace of digitisation in the aftermarket is picking up: Kevan Wooden, chief commercial officer, LKQ UK & Ireland

Date: Tuesday 03 October 2023

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There are two recent trends in the aftermarket which suggest that the sector’s digital transformation is gathering pace.

The first is the continued acceleration in online ordering, as evidenced in the data I’m seeing from our Omnipart website that serves the industry.

Ordering parts has, largely, remained a manual process for decades. A technician will pick up the phone to a local branch and request a part for delivery.

For the newly arrived apprentice, who is used to ordering almost everything from his or her smartphone or tablet, this probably seems a little strange!

But we’ve seen a 40% increase in digital sales across our B2B customers over the last 12 months. In August, we hit a quarter of a million orders for that month alone, which is up 15% year on year.

Much of this is for everyday items like oil and filters with the more technical parts and solution-based queries reserved for a call to the team they know and trust at the local branch.

Why the sudden spike? It seems that for us our addition of real time tracking of every step of the journey is what’s made the recent difference, although of course, there is a degree of inevitability about much of this – and we’ve been hard at work for some time as we help garages embrace change.

If you’ve ever ordered a Domino’s Pizza online, then you’ll be familiar with the format. Garages can now track their part from the minute it’s ordered to when it’s picked, in the van and on the way to them. This visibility is helping them to plan their days better and make the most of their time.

Once converted to online ordering, garages tend to increase their usage. They find it quicker and more convenient.

Human error is pretty much eliminated – given you don’t need to quote a part number over the phone. Then the whole order has a digital footprint with warranties and returns all in one place and easy to action online.

Things like Haynes Pro integration, which gives technicians access to installation guides and timings, as well as our Service Kit Builder, that allows a workshop to identify all of its service parts in one click, add to the overall speed and convenience.

We obviously like it too. Our colleagues can use their time to help provide advice and guidance when more complex requests come in. In this sense, our phone line then plays a more solutions-led role where we can add value.

The second trend is the on-going growth in the adoption and the use of Garage Management Systems (GMS).

These platforms are changing the way a growing number of workshops operate, from managing daily workflows, to customer-facing tools like online booking systems, electronic quoting and invoicing and MOT reminders.

With benefits to both the front and back office, a GMS does more than just improve productivity and ease admin burdens - it helps to win and keep customers too.

Not only is demand for GMS products like our own CarSys rising but the volume of parts being ordered from us digitally via connected GMS platforms is growing too.

We cover the UKs leading platforms, including MAM’s Autowork Online and Carsys, as well as a recent integration in the fast-growing Garage Hive platform, Techman GMS.

With the use of digital tools growing, garages and bodyshops are becoming more alike the digitally enabled sectors it finds itself competing with to attract the next generation of talent.

My slightly flippant point about the apprentice above is an important one. Impressions count and the industry will find it harder and harder to entice and keep young people if they come away with the view that the sector exists in a pre-digital era.

As the aftermarket’s digital transformation continues to gather pace, I’m excited about the role we can play in helping thousands of garages and bodyshops to both win more work and then deliver it more efficiently.

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