Reshaping parts distribution in the independent aftermarket

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Publication Number: Management Briefing 143

Author: Rene Herrmann

Date: January 03, 2018

Tags: Parts, Aftersales

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The ongoing consolidation amongst spare parts distributors (PDs), often now happening as a result of the involvement of private equity funds, is leading to the emergence of more international ‘super parts distributors’.  These players now enjoy significant economies of scale in both their parts sourcing and in the provision of services for independent repairers, to the point where traditional smaller distributors are finding it harder and harder to compete.

In order to understand the impact that this consolidation is having on the overall competitive landscape of the parts distribution sector, we turned to the well-known ‘Five Forces’ model developed by Michael Porter (For more information, see https://en.wikipedia.org/wiki/Porter%27s_five_forces_analysis).  Through this, we can illustrate:

  1. The competitive rivalry between parts distributors
  2. Pressure from digital entrants
  3. The bargaining power of repairers
  4. The threat of substitute products
  5. The bargaining power of parts suppliers

To download the full management briefing, please follow the link on the right.