Chapter 88: What Went Wrong? (Ask for follow-up)
SKF first entered the Chinese market as early as 1912 and started its business in China through agents.
In 1997, SKF (Huaxia) Co., Ltd. was formally established, which started the comprehensive deepening development in China.
As one of the world's largest bearing manufacturers, SKF and NTN account for seventy or eighty percent of the world's automotive wheel bearings.
In Huaxia, due to the late entry of Dongying Automobile Company, SKF occupies more than 60% of the market share.
Whether it is Volkswagen or GM, or Shenlong and Fiat, they are all using SKF wheel bearings.
As a wearing part, the mass production supply and after-sales supply of wheel bearings basically maintain a two-to-one ratio.
But when it comes to profits, it's the other way around.
Under normal circumstances, automobile companies do not allow suppliers to sell aftermarket parts of their own models on the market.
This business, they have to do it themselves.
However, special parts such as tires, wheel bearings, and engine oil, various suppliers are selling parts to the aftermarket.
This is clearly stipulated by some powerful suppliers when they sign basic transaction contracts directly with automobile manufacturers.
Slightly weaker manufacturers will play a dozen side balls.
When the time comes, I will change to an equivalent brand for sale, and you will not be able to take me.
Therefore, in terms of aftermarket parts of wheel bearings, the main engine factory and SKF each occupy half of the share.
It is conceivable how important it is for SKF (Huaxia) Co., Ltd. to change the bearing orders after sales.
Basically, it's something that needs to be reported within the company every month.
"Xue, can you tell me, is this data wrong?"
"I know the Spring Festival is coming soon, and you are all in a hurry to go home for the New Year."
"But we can't leave the work behind."
Gormo is the sales director of SKF, and has a private office of more than 50 square meters in an office building in the center of the magic city.
It was definitely a much more comfortable day than it was at headquarters.
"Gormo, I hope this data is wrong."
"When it came out, I immediately felt that something was wrong."
Xue Wenqiang smiled bitterly and gave his answer.
The data is not wrong, there are only so many orders this month.
"Isn't it mistaken?"
"The number of orders for wheel bearings has dropped by 50% compared with the same period last year, and it has dropped by more than 60% month-on-month."
"With such a huge drop, you told me that it was not wrong?"
"Xue, you have to make it clear, today is not April 1st."
Holm put down the coffee in his hand heavily, obviously in a very bad mood.
"This year, many automobile factories are making every effort to promote the sales model of 4S stores."
"Most of the after-sales parts in the 4S store are shipped by the automobile factory."
"This has had a very big impact on our aftermarket sales."
Xue Wenqiang quickly found a reason that seemed more convincing.
To some extent, this is also an objective reason.
It's just that when the number of cars is increasing, 4S shops and car repair shops are increasing, theoretically their after-sales sales should not drop so much.
"I'll give you a month."
"This problem must be clarified and effective solutions must be developed."
"Otherwise, you won't have to come to work again."
Golmo wasn't sure what to do for a moment.
But the problem has arisen.
That's for sure.
……
When SKF was worried about the change in the order for wheel bearings, Bu Defan was also discussing this matter with Li Jianfeng.
"Li, the after-sales service department asked us to help confirm and see if SKF was selling SP parts to our dealers without authorization."
"You have to pay attention to this matter."
"It's best to go to SKF in person and talk to them."
"Also take a look at their warehouse and find out what their shipments are doing recently."
The sales of after-sales parts are also a piece of fat for OEMs.
For most aftermarket parts, the procurement cost is exactly the same as that of mass production parts.
However, the price of sales to 4S stores is at least 30% of the management fee.
This so-called management fee is actually profit.
Although the overall sales are not exaggerated, the profit contribution to the company is very large.
The most important thing is that as the number of holdings increases, this piece of cake will automatically become larger.
Therefore, the changes in the after-sales orders of some major parts and components are also specially watched by the Modu Volkswagen.
"It's no secret that SKF sells SP parts directly to agents and distributors."
"The after-sales service department is not unaware."
"It's like Continental tires and Michelin tires, they themselves are selling tires."
"They even have their own agents that sell tires of all sizes."
"If we go to SKF to investigate, I'm afraid it's going to end a little bit."
Li Jianfeng speaks very directly and does not like to beat around the bush.
The sales KPI of after-sales parts has nothing to do with the purchasing department.
So he didn't really want to get his hands on it.
Especially some time ago he also heard a story.
For the selection of engine oil agents, the game between several leaders of the company is very fierce.
After all, there is a story behind these agents.
This game almost didn't turn the story into an accident.
Although the situation of wheel bearings is certainly not as complicated as that of engine oil, he doesn't want to touch it.
"If they were still selling wheel bearings in the same quantities as before, we would have been normal."
"If they have greatly increased the sales of SP parts of wheel bearings in the past month, it is equivalent to encroaching on the interests of the public in the magic capital."
"We must come forward to stop this kind of behavior."
"Otherwise, when the after-sales service department will poke this matter to the management side, we will not be able to deal with it."
Li Jianfeng is deeply trusted by Bu Defan.
So there are some things that Bu Defan also said more thoroughly.
With this principle, Li Jianfeng has the bottom in his heart.
"Then I'll get in touch with SKF sales first and see what they have to say."
"Then go to their site to confirm."
For suppliers, when it's time to knock, knock on.
Li Jianfeng has a clear understanding of this.
Like SKF, you can choose to do something, but you can't bother me.
Or maybe it's this thing, I want to be able to enjoy the benefits.
Otherwise, why should I take the blame for you?
Everybody is very realistic.
"It's best to figure this out before the Spring Festival holiday."
"Otherwise, it will be delayed until next year."
Bu Defan felt that SKF was such a pit to the public, and he had to teach him a lesson.
Otherwise, other manufacturers will learn from each other in the future, and it will be difficult to discipline.