With the deepening of digitalization in the automotive industry chain, more and more dealer groups are beginning to utilize digital technologies and models to explore growth possibilities. Baturu has achieved deep cooperation with nearly 50 top 100 dealer groups, leading maintenance chains, mobility platforms, and others through its auto parts centralized procurement digital solution.

The past year has perhaps been a "bone-chilling" year for auto dealers.

According to the "2022 National Auto Dealer Survival Status Survey Report" released by the China Automobile Dealers Association, the loss ratio of auto dealers throughout 2022 increased significantly compared to 2021, with only 29.7% of dealers achieving profitability, nearly halved compared to 53.8% in 2021; the proportion of loss-making dealers reached 45.2%, expanding by 27.7 percentage points compared to the same period last year.

Affected by the macroeconomic environment, dealers' profitability has suffered a "cold wave," but even so, some strong businesses remain vibrant. The report shows that although adverse factors such as repeated pandemics have also impacted the automotive aftermarket, it still contributed nearly 50% of the profits, becoming the "stabilizing anchor" for dealer groups' profitability.

As a key link in after-sales business, the parts sector directly relates to the improvement of after-sales output value. How to achieve efficiency gains and cost reductions in parts procurement management has become an urgent issue for dealer groups to solve.

Recently, at the "Annual Guangzhou Automotive Service Industry Conference" hosted by the Guangzhou Automobile Service Industry Association, Baturu Chairman and Founder Zeng Wan Gui was invited to deliver a keynote speech centered on "Digitalization of Auto Dealer Parts Centralized Procurement Management," deeply interpreting how dealer groups can deeply tap into the value of after-sales parts business and seek new profit growth, which received high recognition from numerous dealer groups on site.

Traditional procurement model: Low efficiency, high management costs

At the current stage, dealers' after-sales procurement departments still face mixed supply resources in the market, with high management difficulty and inability to control product quality and service quality. Once parts issues arise, it will seriously affect car owners' maintenance experience.

Price issues are also a "chronic problem" for dealer groups. In China's market with cars from all over the world, the multitude of car brands and models leads to a wide variety of parts categories and qualities, plus multi-layer distribution, ultimately resulting in opaque parts prices, high procurement costs, or inconsistent prices, making it difficult to control before procurement.

In addition, efficiency issues also seriously affect procurement costs. Under traditional procurement methods, every procurement link requires manual intervention, including multi-party price comparison, ordering, and reconciliation, with cumbersome processes and high implicit costs brought by "human factors."

Moreover, there is a lack of efficient collaborative management between headquarters and stores, making it impossible to control the parts procurement process, with procurement data disappearing like a stone sinking into the sea, let alone refined data analysis and operations.

All of the above lead to persistently high parts procurement management costs for dealer groups.

 Baturu Auto Parts Centralized Procurement Digital Solution: 30% Efficiency Improvement, Over 10% Cost Reduction

Baturu's auto parts centralized procurement management digital solution focuses on cost reduction and efficiency improvement in parts procurement management. Through "Centralized Procurement SaaS + Supply Chain + Parts Procurement Management Methodology," it helps dealer groups build a more efficient, high-quality, and compliant supply chain system, reducing overall costs.

At the same time, it breaks down information silos between headquarters and stores, using data accumulated from full-process management to help groups perform multi-dimensional procurement analysis and improve management decision-making efficiency.

1.Full-process digitalization, making parts procurement more open and transparent

All suppliers of stores achieve comprehensive online management through the centralized procurement system. Store parts procurement—from inquiry, comparison, ordering, payment, delivery, after-sales, to reconciliation—is fully digitized and transparent in a closed loop, fully realizing efficient management and open procurement.

2.Standardized supplier management to reduce supply chain risks

All suppliers of groups and stores achieve standardized and online management. Through a complete supplier information database, groups can realize full lifecycle management from supplier development, admission, cooperation, observation to elimination, instantly preventing supply chain risks.

At the same time, through online data, it can analyze suppliers' cooperation frequency, quality, service quality, etc., and timely adjust or replace them.

3.Supply chain empowerment to improve supply quality and reduce supply costs

Baturu currently has resources from over 2,000 high-quality factories and dealers, which can efficiently match group needs as a supplement to their high-quality supply chain resources.

At the same time, through Baturu's competitive supply chain pricing system as a price benchmark, it can promote price transparency in the original supply system, making parts procurement prices more reasonable and reducing parts procurement costs to a certain extent.

4.Multi-dimensional data reports for refined operations to assist cost reduction

Based on the online and closed-loop procurement processes, the system accumulates comprehensive behavioral data. Through dashboards for operational data, business data, supplier management, store management, and nearly 20 other reports, it can comprehensively analyze daily and monthly procurement amounts, cycles, volumes, abnormal procurements, and other multi-dimensional data indicators, helping groups efficiently manage procurement behaviors. Through intelligent analysis, timely adjustments can be made to reduce management risks.

With the deepening of digitalization in the automotive industry chain, more and more dealer groups are beginning to utilize digital technologies and models to explore growth possibilities and gain greater competitive advantages.

Currently, nearly 50 top 100 dealer groups, maintenance chains, and mobility platforms have achieved deep cooperation with Baturu in parts centralized procurement management business.