Articles
Automotive Aftermarket test drives EANnet® (December 2005)
In a drive to slash its business costs, the Australian automotive aftermarket industry is gearing up for electronic trading using GS1 data synchronisation service, EANnet®, as a platform.
The industry hopes to follow the lead of Australia's grocery, liquor and health sectors and replace paperwork with electronic messaging. EANnet® offers a central electronic 'catalogue', housing product and pricing information. Suppliers need only upload data once to EANnet®, rather than using hundreds or thousands of paper-based forms, allowing retailers to access the information at any time.
GS1 Australia's Manager Business Development, Marcel Sieira said aside from the timesavings and productivity gains of reduced paperwork, this type of data synchronisation minimised costly human error.
"Even the most simple mistakes can lead to a disputed invoice, which sets off a whole chain of administrative chores for retailers and suppliers alike," Marcel said.
"Someone picks up the error and advises the other party, who then has to spend time figuring out what went wrong, correcting the mistake and, often, issuing more paperwork to deal with the first problem, which must then be processed in turn.
"The good news is that research shows over 80 per cent of invoice claims can be eliminated through the ongoing data synchronisation of product and pricing data, which is where EANnet® excels."
Moving to reap such savings, the Australian Automotive Aftermarket Association (AAAA) is working with GS1, suppliers, wholesalers and retailers on a project to deliver an industrywide solution. Among the participants are Auto Concepts, Clutch Industries, Coventry Group, GUD Holdings, NGK Spark Plug, Repco and Super Cheap Auto. The AAAA's Executive Director Kim Elliott expects to complete a pilot early in 2006 that will set standards for the exchange of reliable data.
"There is enthusiasm for our project and a recognition that telephone conversations and the manual manipulation of data lead to errors that cost the bottom line," he said.
"Data synchronisation will minimise these unnecessary costs, allowing industry members to become more competitive and enjoy higher profits."
Terry Chipman Merchandise Services Manager of Automotive Parts Supplier, Repco, agreed and said greater efficiencies would free up valuable resources.
"It's great the AAAA has taken this project on to improve efficiencies," he said. "Instead of spending time fixing errors, our people will be able to focus on more proactive things."
On the other side of the fence, working group participant and industry supplier NGK Spark Plug, also sees benefits.
"As a manufacturer, we expect a reduction in invoice claims, faster introduction of new parts and greater overall productivity given that we will be talking in only one language to all our direct accounts," said NGK's Terry Riadis.
