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Electronic Connections

Shane Gorman of Autovia spoke to ACC about how his company is using the latest technology to electronically connect buyers and sellers of automotive and truck parts in local markets, worldwide. The statistics he cited in his presentation were impressive, including "By 2002, corporations worldwide will save up to $1.25 trillion doing business over the Internet."

"Repair shops typically phone several suppliers to source parts for a single job," he said. "In the process, they can be put on hold, be given inaccurate information, and the order may not be entered immediately into the seller's POS system." As a result, the seller doesn't always get the essential information, and the average order takes 2.5 phone calls.

Autovia's solution is to place all the ordering on the Internet. Buyers save time ordering parts, with faster orders and quicker deliveries, while sellers save order-processing costs and sell more efficiently. Autovia requires its partners to have an electronic parts catalog, and have a live connection to Autovia. They are open to all suppliers, so instead of a single supplier solution, Autovia is proposing an open network.

Their services are free to the buyers, while sellers pay three percent on accepted orders. Customers have several distribution options, from direct field sales to third party relationships. Autovia began an advertising campaign in January, with targeted direct mail going out to buyers in selected markets. While their goals are high, they believe they have the company in place to achieve them. As Gorman said, "Autovia's objective is to be the primary open parts buying network for automotive and truck parts."

 

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