Workshop optimization in a formerly brand-affiliated automotive workshop

Initial Situation and Project Context

The customer is a former Renault-branded workshop that, following its exit from the manufacturer contract, successfully repositioned itself as an independent garage. With the shift to the independent aftermarket, however, not only the general framework conditions changed, but also the requirements regarding purchasing, sales, and business management/controlling of the company.

Previously, processes, systems, and mindsets had been largely prescribed by the OEM. Now, the company had to independently handle purchasing decisions, choose suppliers, and determine competitive retail pricing. This newfound entrepreneurial autonomy created significant opportunities while simultaneously introducing structural challenges – especially in aftermarket parts procurement and in selling parts to retail (end) customers as well as to commercial/B2B clients.

Assignment and Objectives

The contract included the Optimization of purchasing and sales, with clearly defined economic objectives. Specifically, the following should be achieved:

  • the purchasing conditions should be improved by at least 10%,
  • Parts sales will be increased by 20%.
  • and the profitability of the overall operation should be sustainably increased.

The focus was not on short-term cost reduction, but rather on building a viable, market-oriented business model for the independent workshop/aftermarket sector.

Project challenge

There was no particular challenge in the classical sense. Rather, the complexity of the project lay in the Transformation from a brand-tied to an entrepreneurially managed operation. Existing routines from the OEM world had to be questioned and adapted to the logic of the free market – both in purchasing and in sales.

Approach and Role of the Consultants

At the start of the project, the existing purchasing and sales structures were analyzed in detail. This included, among other things:

  • Supplier structure and conditions,
  • Parts usage and assortment logic,
  • Calculation models,
  • as well as the integration of parts sales and workshop processes.

Building on this foundation, the consultants collaborated closely with the workshop leadership to create a new procurement and sales concept. On the purchasing side, alternative supplier structures were assessed, purchasing volumes were consolidated, and pricing/conditions were comprehensively renegotiated. Simultaneously, parts sourcing was realigned to better reflect real demand patterns and inventory turnover rates.

On the sales side, emphasis was placed on developing a clear, consistent pricing and value-argumentation approach vis-à-vis customers. Transparent cost breakdowns combined with a strict separation of parts and labor allowed for significantly improved margin steering and control. Furthermore, parts sales were deliberately positioned and strengthened as a distinct, standalone revenue driver within the operation.

The consultants closely and practically supported the implementation to ensure that the new structures function in day-to-day business and are accepted by the employees.

Results and impact achieved

All defined targets were met – and in several areas even surpassed – during the project period. Purchasing terms improved by roughly 10 %, and parts sales grew by approximately 20 %. This led to a substantial increase in the overall profitability of the operation.

In addition to the measurable results, the business benefited above all from clearer business management/controlling and a strengthened entrepreneurial self-image in the independent market.

Conclusion:

The project exemplifies the potential that lies in consistent workshop optimization when market understanding, purchasing and sales expertise are combined.

For companies in comparable periods of upheaval, a structured external perspective can provide crucial impetus.