Title: A Supplier Driven eCat Model
1- A Supplier Driven eCat Model
Bob Moore General Manager FreeCat
2Whya Supplier Driven eCat Model?
- More than 90 of aftermarket parts sales are
facilitated by EPCs - The typical time between a new parts
availability and its appearance in 3rd party EPCs
is 60 to 150 days - This costs aftermarket millions each year and
drives business to OESDs
These problems have festered for years and
someone needs to do something
3The Solution
- NA manufacturers need to take charge of their
destinies by forming a broad coalition to produce
and distribute their own leading edge
Webbased EPC that can be updated on a daily
basis if need be - Those same manufacturers need to take much
greater responsibility for the accuracy of their
data
4The Premise
- Everyone benefits if data is available faster
- Faster new number availability will shift
purchase from OESD to aftermarket suppliers - Correcting data errors faster will reduce returns
eliminate stranded part numbers - Quicker data flow would increase revenue reduce
costs keep installers aftermarket loyal
improve the quality of customer services across
the channel
5Enter FreeCat
- A Supplier Driven eCat Model
6FreeCat is Not Exactly a Revolutionary Concept
- In fact it is nearly identical to the
aftermarkets traditional distribution model for
paper catalogs
7In The Traditional Model
- Manufacturers assumed complete responsibility for
their paper catalogs - Researched OEM applications
- Engineered products
- Assigned part numbers
- Validated data accuracy form fit function
- Aggregated the data and published it
- Distributed catalogs through channel partners
to jobbers and installers
The goal is to replicate that model
Electronically
8Three Simple Objectives
- Address the needs of our common customer the
installer ahead of everything else - Get additional and more accurate data to the
market in hours or days not weeks or months - Treat data and other intellectual property
securely and fairly on behalf of its owner
Regrettably Not Being Done Today
9Intellectual Property
- Treated securely and fairly on behalf of its
owner is what FreeCat is all about
10FreeCat Membership Criteria
From the FreeCat ByLaws
- Membership in FreeCat is available to all bona
fide suppliers of authentic motor vehicle parts
and accessories with unique identifying numbers
and/or letters that are neither copied nor
derived from similar parts produced by others
without the other firms express consent and
authorization.
11FreeCat Membership Criteria
From the FreeCat ByLaws
- Bona fide suppliers will generally
- Utilize a unique part numbering system UPC
codes issued by GS1 - Have one or more formal written agreements to
obtain original equipment data from an OEM
licensed data supplier - Design develop original products and
corresponding product application data
12FreeCat Membership Criteria
From the FreeCat ByLaws
- Bona fide suppliers will generally
- Develop mass produce printed catalogs either
using a dedicated full time catalog staff or a
FreeCat signatory data provider - Create distribute original product images of
parts accessories that are supplied by the firm
13 Treat intellectual property fairly
- Data owner retains all ownership rights
- Data in FreeCat will only be shared with parties
authorized by the data owner - Data in FreeCat will never be sold to anyone
- Only data that is the property of the data owner
is allowed in FreeCat
14What FreeCat is
- A standardsbased lookup utility
- matches a year make model with a part
- Database of member companies application data
- A website with uptotheminute data for
distributors countermen installers - A governance body that
- Screens members for ethical data practices
- Authorizes developers to use FreeCat
15What FreeCat is Not
- A commercial eCat
- An industry data warehouse
- An exchange or hub for purchase transactions
between trading partners - An unrestricted web site that makes theft easier
for data pirates
16How is FreeCat Different?
For Developers
- Today must license an existing eCat typically
requiring an upfront fee and/or per transaction
fees - That adds cost to eCommerce
- There has been no alternative look up utility
with a well populated database until now
17How is FreeCat Different?
For Practitioners
- When data is missing or ambiguous multiple
visits to supplier websites are required to
capture required data - That adds delays and costs to repairs
- There is no single goto source with the most
current product and application data until now
18FreeCat is
- An independent notforprofit corporation
- Manufacturer led data owner led
- Without employees volunteers contract
providers - Standardsbased
- Free to resellers and service dealers
- Costeffective for manufacturers and developers
FreeCat exists solely as a service to improve
the availability accuracy of data especially
at the shop level
19Who Started FreeCat
- Leading suppliers got the ball rolling
- Affinia
- Cardone
- Federal Mogul
- Standard Motor
- Bosch
- Dayco
- Gates
- Tenneco
FreeCat Membership Is Open To All Aftermarket
Suppliers Who Qualify
20Why Not Thru an Association?
- Competing interests of membership
- Technology providers
- Manufacturers with no data capability
- Need for timely action
- Smaller groups can move faster
- Control could eventually be turned over once the
path is set
21How Will It Work?
- Data owners submit data to FreeCat
- FreeCat publishes electronically
- Manufacturer approves and the FreeCat database
is updated - User feedback is formalized and shared with data
owners - Corrections updates made and approved by data
owner are immediately distributed
22How is Data Submitted?
- Data can be submitted in any format
- ACES is preferred but also Legacy XML Excel
flat files - Othermotive is accommodated
- Manufacturers can submit data directly or use a
data service provider who is a FreeCat signatory
23What is a Signatory Data Service?
- One that signs an agreement obligating it to
- Honor the data practices of FreeCat
- Never use pirated data
- Protect the intellectual property of other
companies - Existing aftermarket providers will be recruited
to participate
24Is there actually a FreeCat?
- No Not in the sense of a branded service
- More like Intel Inside or Saber
- The lookup engine inside commercial aftermarket
applications - Yes in that there is a website with
uptotheminute data for installers parts
sellers
25How is Data Distributed?
- Two ways
- FreeCat.com
- Signatory developers applications
26FreeCat.com
- Site free to any aftermarket practitioner
- Registration/validation required
- Ability to access the database and look up
applications for all member brands - No pricing stock checking or ordering
- An online resource to find and research
application and product data with a SINGLE
NAVIGATION STYLE
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29FreeCat is Othermotive Ready
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32Signatory Developers
- Any software developer that wishes to utilize the
FreeCat catalog may do so by signing a
developers agreement and paying an annual fee
33Signatory Developers
- Agree to
- Use only data provided by FreeCat
- Never charge transaction fees to users
- Make all brands in FreeCat visible to techs
- Share enhancements made to the lookup utility
with other developers and users
34What Does It Cost?
- FreeCat manufacturer annual dues
- 7500 but adjustments may be made based on number
of lines/brands SKUs annual sales and
condition of data - Developers
- 7500 annually for unlimited use
- Channel Partners Installers
- Free unless they are acting as a developer
35Anticipated Benefits
- New numbers to the market faster will reduce the
exclusive time period that OESDs enjoy - Faster correction of errors which will reduce
returns - Reduce the number of export file formats
- Provide better protection of intellectual
property - Establish a means for distribution of product and
technical information directly to installers - Reduce costs for everyone in the supply chain
- A onestop resource for the most uptodate
product and application data for countermen and
installers
36Some Final Thoughts
- ...on the state of data technology in the
aftermarket
37Market Influence 1970s
High
Moderate
Low
Reseller
Installer
Manufacturer
38Market Influence 2000s
High
Moderate
Resellers assert their control on the buying
relationship with installers and dictate what
brands are offered
Low
Installer
Reseller
Manufacturer
39Market Influence Goal
A level playing field with the technician enabled
to make brand and product decisions for himself
High
Moderate
Low
Installer
Reseller
Manufacturer
40Some Issues On the Radar
- IT executives role in affecting management
thinking - Tactics to defend your IP
- A looming data threat
- Some risks associated carryforwards
- How FreeCat represents a template to address
other manufacturer threats
41Impacting Managements Thinking
- What role IT executives need to play
- Warn them about the bats
42Should I warn him about the bats?
43Whats the point the poor bastard will see them
soon enough.
44Role IT executives need to play
- Warn them about the bats
- Tell them what they have invested
- How quality data differentiates a company from
domestic LCC competitors - Better data and systems sell more products
- Data is an asset worthy of defending
- Data is a leverage point to improve channel
partner relations
45Tactics to Defend IP
- FreeCat can help not THE answer
- Greater vigilance
- Instill trap lines set up data thieves
- Monitor and verbalize be a squeaky wheel
- Protect your ownership rights legal data
agreement - Take violators to task Tenneco Dayco AASA
46 A Looming Data Threat
- OEMs are tightening the screws
- ProQuest
- GM
- Honda
- Ford
- Act collectively to assure access to data
- Problem is on AASAs radar
47The Risk of Carryforwards
- Increasing numbers of data providers channel
partners and suppliers are relying on
carryforwards as a means of expediting new
model coverage - Carryforwards without appropriate application
engineering is a risky practice - But why?
48The Risk of Carryforwards
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50The Risk of Carryforwards
- The mere matching of OE part number does not
necessarily mean that the aftermarket part
carries forward - 75 to 95 range
- Raise serious issues of who is liable in cases of
warranty claims - Some manufacturers are considering statement of
legal limitations of liability as pertains to
carryforwards
51What Does FreeCat Represent?
- When viewed as a template for manufacturer
collaboration then why not - Negotiate access OE data
- Facilitating new data related initiatives
- VIN lookup
- VMI/CPFR
- Addressing warranties
- Managing returns
52One Final Recommendation
Warn your bosses about the bats
53Questions?
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55Arent you overstating the OESD threat
- We all know they are never going to get serious
about the parts business.
56Critical Market Impediments
- Data delivery and error corrections are too slow
in reaching the marketplace - Not enough data is getting to market and not
enough of what is makes it to the service bay