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NGK/NTK And The Aftermarket ‘Pour It Forward’ At AAPEX
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By Counterman
MAHLE showcased its full-service portfolio of products at AAPEX. The company said it aims to position itself as a “one-stop shop” for technicians, shop owners and drivers. Key offerings highlighted at this year’s AAPEX show included
link hidden, please login to viewgaskets, engine components, filters and thermal management solutions as well as the company’s battery diagnostic systems, A/C units and latest shop equipment. “Our goal is to further expand MAHLE Aftermarket’s leading role in the global market with attractive offers for repair shops and trade,” said Eduardo Spilla, general manager,
link hidden, please login to viewAftermarket North America. “We are particularly focused on electrification, digitalization, and sustainability in order to help create the future of transportation and do our part in providing high-quality solutions to customers around the world.” More information on MAHLE can be found online or by contacting MAHLE local sales representatives.
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By Counterman
This episode of the Road to AAPEX takes us to Grand Rapids, Mich., for a trip to Auto-Wares, where host Joe Keene learns about the company’s history, operations and distribution of auto parts. Auto-Wares works closely with manufacturers like BCA Bearings, a division of NTN, to ensure high-quality OE replacement parts are delivered to where they’re needed most.
That leads us to our next stop—NTN’s Mt. Prospect, Ill., location. There, we take a close look at the company’s focus on manufacturing high-quality products. NTN also discusses the importance of AAPEX as a platform to showcase new products and to connect with customers. Then, it’s back to Michigan, and Tamrox Automotive in Jackson, Mich., for an NTN wheel bearing replacement. Watch the video for a demonstration of the process and for insights on customer service and technician retention.
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By Counterman
“Humans think AI is going to replace them,” says Mike Mohler, executive vice president and chief purchasing officer with the Automotive Parts Service Group.
“It won’t. Somebody using AI to be better than you will replace you.”
The integration of artificial intelligence in the aftermarket is more advanced than many people might realize, according to Mohler. It’s already yielding impressive results for those who are using it effectively. The primary challenge is not just the availability of data, but the effective use of that data to drive actionable insights and decisions. Mohler cites a report from Accenture showing that AI-driven price optimization can result in a 5% increase in gross margin and a 15% boost in revenue.
“You look at some of our competitors, and they’re able to post comparatively outrageous profit margins,” says Mohler. “They’re using AI for logistical prowess. They’re using it for customer service. They’re using it to get the right pricing in play.”
The ability to make informed decisions based on comprehensive data analysis is a major advantage of AI. Data scientists in the aftermarket industry are increasingly using the technology to turn large sets of data into actionable insights. This includes identifying market trends, customer preferences and operational inefficiencies. The application of AI in this area can lead to better strategic planning and improved business outcomes. Mohler says those applications can have a significant impact on profitability.
“Let’s say the average WD would have a 25-45% gross profit margin, given their business model. Some competitors are posting 58%. AI is going to be the tool to help them catch up. We’ve got to get to 53% minimum, I think. That’s a rarefied position, but it’s been tested by some of the smartest people that I know, and it should be achievable when we’re planning and we’re hoping that it is,” Mohler explains.
A Customer Experience Revolution
AI’s application extends to customer service as well. Chatbots and virtual assistants are now commonplace, offering customers quick and efficient service. These AI-driven tools have evolved to the point where they can engage in conversations that are increasingly indistinguishable from human interaction.
“I wonder how many people know that they’re talking to a chatbot when they’re talking to a chatbot?,” asks Mohler.
Navigating the Risks
Despite its advantages, AI’s integration into the aftermarket raises several concerns. Cybersecurity is one of them, as increased reliance on data systems introduces new vulnerabilities.
“We have employees with access to the internet at a thumb’s notice, and if we’re not careful, they can mistakenly click on something that could disrupt our business for months,” Mohler explains.
Mohler also expresses concerns about protecting intellectual property. Misuse of data or inadequate protection against competitive eavesdropping could undermine trust and impact the industry’s integrity.
“Once the data hits the public domain, how do we protect it and how do we make sure that it’s not being used against us? How do we know that we’re not enabling our competitor who’s able to electronically eavesdrop on one another like never before?,” asks Mohler.
Envisioning AI’s Next Steps
Mohler stresses that AI’s influence on the aftermarket is only in its infancy. Over the next 5-10 years, he envisions an advancement from a basic understanding of AI as an algorithmic tool to more specialized applications tailored to industry-specific needs.
“So my thought would be that companies would have their own internalized GPTs and industries would have their own internalized GPTs. My hope is also that we will become as skilled at selling to disembodied customers via e-commerce as we are at selling to them when they’re across the counter from us or in our stores,” Mohler says.
Mohler references the seven stages of AI when looking ahead to the technology’s impact on the aftermarket.
“When it comes to supply chain, when it comes to logistically moving products around, when it comes to optimizing sale price, optimizing customer service, my hope is that we will be a little closer to stage seven. Right now, we’re really at stage one and a half, maybe two,” says Mohler.
As the technology evolves, moving beyond its current capabilities, AI’s exact impact on the aftermarket, and countless other industries, will be even more profound. Companies that invest in AI and adapt to its changes will be well-positioned to thrive in the future of the automotive aftermarket.
“It’s incumbent upon us to understand AI and to become data scientists ourselves, because everybody’s got access to the data. Whoever can use the most disparate sources for the best outcomes is going to win in my overall view of it,” says Mohler.
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By Counterman
link hidden, please login to view has launched the new BKS1002 fuel pump kit. This new model is engineered specifically for high-pressure, in-tank applications and is the highest flowing fuel pump in the TI Automotive catalog, according to the company. The BKS1002 fuel pump kit will feature:
High-pressure, high-flow E5LM brushless screw pump 3’ long wire harness for tank mounting High-performance inlet filter Support of 1,000+ horsepower “The BKS1002 further expands our line of fuel pump kits with another high-pressure, high-performance technology, but adds additional flexibility for enthusiasts,” said Brian Altenberger, aftermarket business director, TI Automotive. “There has been a significant demand in the market for the option to purchase a standalone pump and the BKS1002 now provides that option.”
TI Automotive Aftermarket said its BKS1002 must be driven with a sensorless 6-step commutation method or other suitable methods such as Sinusoidal or Field Oriented Control (FOC). The BKS1002 pump, filter and wire harness are all components from the BKS1001, but without the controller. The BKS1001 will remain available, however customers who already utilize a controller may now opt to purchase a kit without one, offering additional build flexibility.
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