Las Vegas --People who speak only English will usually fail miserably if trying to talk with someone who speaks only German or French. When it comes to managing and sharing inventory data, the aftermarket is faced with a similar language problem.

Although industry initiatives to standardize inventory data have been set in motion, many manufacturers and warehouse distributors are still using closed, proprietary systems of inventory management. Those systems cause inventory inefficiencies that reverberate throughout through the supply chain, ultimately affecting the service facility.

"The system has failed if service facilities can't get the parts they need within half an hour," said John Hamminga, spokesman for DST , an automotive parts distribution software provider that aims to alleviate distribution problems with open, configurable technology.

"It's time for the industry to take a stand and refuse to be handcuffed by outdated technologies," said Hoon Chung, president and CEO of DST , during a press conference at the Automotive Aftermarket Product Expo (AAPEX) in Las Vegas on Nov. 3. At the press conference, Chung unveiled DST 's latest software management offering, iEnterprise, the result of a joint venture between DST and IBM .

"Management at all levels of the supply chain is inundated with data," Hamminga said. "We believe that systems in our industry need to be configurable to the needs of the user," he said, adding that those systems should provide the ability for a business to take technology and shape it to help that particular enterprise.

Increased internal WD efficiency

As an example of improved efficiency, Hamminga pointed to Denver-based heavy-duty parts distributor Drive Train Industries (DTI), which, in addition to a service facility, has six warehouses in Colorado , Wyoming , and New Mexico .

Hamminga said DTI has realized several improvements since implementing DST technology. Contributions in areas of inventory accuracy, employee training, stocking parts, and knowledge of counterpeople has increased, he said. "During physical inventory, most distributors can get close to being accurate, but the location of any given part can be a major problem," Hamminga said.

Bar coding technology during inventory fulfillment allows warehouse personnel to scan parts as they go onto the shelf, he said. Conversely, he added, parts can be scanned as they go off the shelf to be shipped. "The system provides a pick ticket that gives the location of a part."

  In addition to internal efficiencies, DST lets suppliers offer parts online to service facilities, Hamminga said.

Turbo Parts, Internet-based parts ordering

"Ninety percent of Web stores don't have live data," said Floyd Beadle, DST vice president of industry solutions. He added that Web sites typically updated nightly. "The aftermarket demands live inventory."

  "The benefits of having a system in which the WDs and service facilities can share stock information is tremendous in terms of being productive and selling more product," Hamminga said.

  "Any given service facility can not only see a WD's inventory, but it marries the two as business partners," he said. Turbo Parts is designed to make it easy for parts distributors and service facilities to do business, Beadle said.

"The goal is to free up the counter guys from the poor use of their time and expertise to do the research on hard-to-find parts," Beadle said. Let the shops order the common parts online, he added.

Bridging the technology gap

  Although more shops are using technology to order parts online, Hamminga said there is hesitation on the service facility's behalf to embrace new ordering technology.

  "Shops see this as being the responsibility of the parts distribution network to get them their parts, rather than being an active participant in the process," Hamminga said. "The biggest selling challenge is to convince the service facility that there's technology there that's mutually beneficial."

  "What we've found is that resistance is perception about how they order," Beadle said. "Once they use it, they tend to use it extensively."

  A link on the distributor's Web site directs the service facility to the online parts ordering system, Beadle said. Users then key in their IDs and passwords to obtain availability and pricing, he added. Cash incentives, Beadle said, have worked in getting shops to start using the technology.

Using IBM technology

   Partnering with IBM has positioned DST to deliver reasonable, sensible, next-generation business solutions to address issues that plague the industry, Chung said.

  "The market leaders have used closed, proprietary systems, and they've been protective of their intellectual property," Beadle said. "Because of the IBM relationship, we have the advantage. We can easily adapt to the standards. Our competition has limited ways to accept and deliver data."

  The IBM partnership gives us the capability of open standards and open architecture, he said.

  "A multibillion-dollar investment has been made in the iSeries platform," said Duffy Fron, independent software vendors and developer relations representative for the IBM Software Group, during the AAPEX press conference. "The up-time performance, reliability, scalability to business size, configurability to business needs, and low cost of ownership are unmatched in the industry."

iEnterprise

  Designed to be custom-tailored to each business' needs, Chung said iEnterprise can perform functions including accounting, financials, business analysis, merchandising, sales auditing, warehouse management, and a host of other business applications.

"The iEnterprise suite of applications provides aftermarket industry management with the ability to visualize the enterprise supply chain, problem solve through 'what if' capabilities, and finally publish and execute a new set of operating instructions in a closed-loop process," Chung said.

"The end result is a tightly integrated and closed-loop business process that enables our enterprise customers to master their operational challenges and proactively monitor changes occurring in their respective supply chains," he added.

Executive Quarterback

   DST 's Executive Quarterback tool allows an executive of a multiwarehouse distributorship to monitor individual activities on a single, centralized server, Beadle said.

  "Increased visibility into business operations enhances management's ability to plan the next competitive play," he said.