Consolidated Billing - Opportunities & Challenges

The following fragment of a strategic assessment for ‘OEM Variable Parts Pricing’ focuses on the first step: identifying the questions to pursue to uncover opportunities and challenges. With this partial sample, it is clear emerging solutions benefit from strategic assessments.

 

Consolidated billing is attractive to parts buyers. Buyers with volume-based clout – such as fleets – have motivated vehicle manufacturers and their dealers as well as other parts (and service) suppliers to provide consolidated billing (and sometimes national pricing). Independent repairers want the same benefits of consolidated billing – who will deliver consolidated billing to shops effectively and broadly? What roles could vehicle-makers play? What is the ‘critical mass’ needed for a shop to benefit from consolidated billing – how much less than 100% is still viewed as valuable? Under what circumstances can competitive systems suppliers work together to enable consolidated billing across transactions?

 

Consolidated billing for shops appears to be emerging from billing and payment services that often are added value for (non-recourse) transaction financing. Is consolidated billing a threat or opportunity for eCommerce providers? What other systems providers for shops, dealers or OEMs could enter and serve this segment well on their own or in collaboration with others?

 

What are the opportunities for the various stakeholders for the special case of dealer-to-dealer parts trade that runs through the OEM’s dealer parts statement – a form of consolidated billing – whether OEM-driven order referrals or dealer-driven D2D trade?

 

Above are a few issues and several questions – from select perspectives – to kick-off the process of identifying opportunities and challenges that may not be readily apparent. Engage with us to build out perspectives from other stakeholders, to identify additional questions, to clarify issues, undertake research and develop insights on mastering your challenges and opportunities in consolidated billing.

 

 

 

 

September 2015