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MEMA Mourns Passing Of Aftermarket Veteran Steve Handschuh
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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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By Counterman
link hidden, please login to view, through Northwood University, is holding Session I of its Leadership 2.0 course. The first five-day session continues through August 15. Northwood calls the class in tactical leadership for the aftermarket “a tremendous learning experience, with excellent presenters and supporters.” Leadership 2.0 includes a blend of industry research and market analysis, discussion and debate on the challenges confronting the light vehicle and heavy-duty aftermarket. Also discussed are competitive strategies, interpersonal communication skills, contract negotiations, conflict resolution, organizational culture, cyber-security best practices, insight into supply chain solutions, and other industry topics and trends.
Jennifer Cothran, the director of content at The Pronto Network, provided her account of the first day of the session:
“I am beyond excited to see what this week has in store for us. We kicked off today’s event with meeting our colleagues and opened with an exciting and inspiring conversation with two of Northwood’s best – Dr. Thomas Litzinger who encouraged us to be open this week, and from James O’Dell and what we could look forward on having an engaged class – on our own or with his help.
They saved the best for last as we heard from Lisa Foshee from the Auto Care Association. Her unique take on leadership and relating them to the game of basketball – Show up and BE present, DO bold things, and DO what you say you’re going to DO – were some of the takeaways. I can’t say I’ve talked about basketball that much before and based on her stories I’m glad I’m not a fan of her team’s rival! Hearing from other colleagues also sharing their perspectives from making all interactions personal, to a good/bad “Dad” joke, a coloring book to a just simple “hi, how are you?” can be bold moves to show presence and create those important relations and moments.
Not all of us can show up for their family to build a kitchen before we left for Leadership 2.0 as one of our attendees did, but taking time away from family and work to attend this “life changing” event is definitely a bold adventure for all of us. I’m looking forward to learning other unique experiences from the lineup of amazing speakers and from my fellow colleagues in attendance.
Thank you to AWDA for this amazing opportunity as a scholarship recipient and to The Pronto Network and the team left at home to take care of business. And, lastly, to my family who I’ve left at home – Thank you for taking on additional responsibilities for me to take advantage of this opportunity as learning never stops!
Session II of Leadership 2.0 will be held March 11-16, 2025.
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By Counterman
MEMA Aftermarket Suppliers has announced a donation to the Automotive Aftermarket Charitable Foundation (AACF) in loving memory of Jerome Hundley. Hundley, a revered figure in the automotive sector, was known for his compassionate leadership and dedication to his colleagues and community. In honoring his legacy, MEMA Aftermarket Suppliers said it aims to perpetuate his spirit of generosity and care through this donation.
“It is an honor to contribute to AACF, a foundation that has done so much for our aftermarket community,” said John Chalifoux, chief operating officer of MEMA Aftermarket Suppliers and a member of the AACF Board of Trustees. “This donation in memory of Jerome Hundley is a reflection of our collective respect and remembrance for a man who gave so much to our industry.”
MEMA Aftermarket Suppliers added that its commitment to AACF will help ensure that the foundation continues to provide indispensable aid to those in need within the industry.
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