Companies all over the world have sought to be a part of the “dot-com” revolution that has inundated our society in recent years. And although we have seen many of these companies fail in the past year, the power of the Internet is still strong, opening the gates for more communication and ultimate success within specific industries. The automotive industry is no exception.

The Internet offers an online presence for anything automotive-related. In retrospect, it's hard to believe that in a matter of a few years, consumers can now purchase an automobile online from the comfort of their home. The information is available 24 hours a day, connected by telephone, cable or fiber-optic lines all over the world.

Analysts believe that the cause of so many dot-com failures can be traced to the services the companies offered. Companies that offer specific, detailed services that benefit the user are the ones that will ultimately survive in this changing industry. The automotive industry is evolving, continually merging itself into the dot-com world. According to the Automotive Service Association's (ASA's) latest “How's Your Business?” survey, 79 percent of mechanical facilities have Internet access in their shops while 89 percent of collision facilities have access to the Internet in their shops. This number has increased exponentially over the past few years. This trend can only continue, allowing for more functionality between the automotive aftermarket and the Internet.

Companies offer an abundance of resources through online channels. The primary goal of these companies is to help run your business more efficiently, saving you valuable time and increasing productivity.

Parts Ordering

In terms of number of sites and overall revenue, the parts ordering sector of the industry encompasses the largest Internet presence. James A. Lang, president of Lang Marketing Resources Inc., a Wyckoff, N.J. research and consulting firm specializing in the vehicle products industry, predicts that aftermarket auto parts e-commerce will exceed $67 billion in 2005. Searching in Google (a search engine) for “online automotive parts ordering” yields more than 20,000 results - too many to decipher through. Current industry estimates report that money spent on parts totals about $41 billion, so it's no wonder that so many companies are interested in this sector of the industry. So how do you choose the right parts ordering venue?

First, evaluate the way you currently order parts. Ordering parts online can speed up the ordering process. If your vendor offers an online option, talk to a representative to see if there are any advantages of ordering parts via the Internet through their company. Brent Black, founder of the International Automotive Technicians' Network (iATN), agrees with this strategy. “There is a lot of value in dealing with someone you know and trust,” he said. “If your time is valuable, then it rarely pays to price shop an online vendor anymore than it pays for your customers to price shop for auto repairs.”

Many industry professionals who implement online parts ordering compliment the system by stating that errors occur less often. Many online parts catalogs provide photos, itemized descriptions and vehicle specifications, offering a detailed account of each part that will be ordered. By physically typing in information such as serial or item numbers, the shop owner or manager knows that the correct part has been requested.

Black also suggests asking other shop owners about their experiences with different online companies. “Time is money in this industry and learning from someone else's experience will save you plenty,” Black said.

Online Training and Education

A shortage of qualified, well-trained technicians has spurred much concern among automotive service professionals. Currently, universities around the world offer college degrees that can be obtained through courses offered via the Internet. It's no wonder the automotive industry has adopted a similar strategy for training purposes.

Melior, an affiliate of the Professional College of the Melior Institute in Alabama, now offers the industry's first Web-based technical training (www.meliortraining.com). Although Melior offers technical certification through traditional classroom approaches, the online classes include diagnostic tutorials, interactive graphics and lessons, and voice-overs.

What makes the program unique is that students have access to a personal tutor that can be contacted by e-mail or phone. This aspect combines interactive multimedia instruction with a personal touch.

Dr. Rodney Boyes, Melior's chief operating officer, believes this type of training will benefit the industry. “We envision that some technicians will take courses during slack work periods, others will take courses on their own at night, while others may do both. The self-paced instruction allows a technician to complete a module as time permits,” Boyes said.

iATN (www.iatn.net) helps to reinforce the training that technicians receive by further broadening their knowledge. iATN offers its 33,000 members a channel of communication for technicians to discuss nearly every facet of the automotive service industry through the Web site's 22 different bulletin-board style discussion forums. iATN also offers live conferencing and chat rooms in which members can discuss specific topics related to the repair industry.

“As a technician myself, I knew there was a real need in the field to communicate with other technicians about a variety of topics - especially the difficult repair situations today's technician deals with on a daily basis,” said Black. “The growing popularity of e-mail and the Internet has made iATN a natural way to link technicians and repair shop owners to each other.”

Of course, there are other training options. Many sites offer information on industry specifics. ICOR International (www.icorinternational.com) can help answer refrigerant replacement questions as well as provide information about refrigerant alternatives, technical specifications and installation. Using Point 5 Technologies (www.point5.net), Nichols Publishing, publisher of automotive information under the Chilton brand name, will begin offering its databases online. “For many years, our books have been known as a trusted source of automotive repair and technical information,” said Rick Van Dalen, chief executive officer of Nichols. “We see the electronic equivalent as the fastest growing segment of our business. The Internet is the natural communication channel to finally make this information available to everyone at an affordable price.”

Online Management Solutions

The automotive repair industry has been somewhat reluctant to merge with Internet technology. That trend has subsided as online management services have surfaced in recent years. ASA's 2000 “How's Your Business?” survey reports that 36 percent of mechanical facilities operate a Web site while 47 percent of collision facilities have a Web site. Time strains often deter shop owners from implementing Web sites for their shops. But more and more consumers are turning to the Web as a researching mechanism, making shops without Web sites invisible to the Web-savvy public.

Maintaining a Web site is at the forefront of online customer management. There are companies that can help you create a Web site for your shop. Before choosing one, evaluate how much information you want on the site. For many businesses, information such as location, phone numbers, e-mail addresses, services offered and a map is enough to satisfy their overall online goal. However, if you want an expanded site, look for current trends that will help keep your shop on the cutting edge of technology.

In a recent survey conducted on the ASA Web site (www.asashop.org), 75 percent of respondents said they would schedule an appointment online. According to this survey, you may want to look for a service that offers online appointment scheduling from your Web site. This feature is not only convenient for your customers, but can also save you or your staff valuable time.

JoeAuto, an ASA member shop in The Woodlands, Texas, uses the Internet as a key entity in its management initiative. “One of the values that the Internet brings to the service industry is the ability to give customers information,” said Randy Vanstory, co-founder of JoeAuto. “Whether that information is scheduling information, diagnostic information or service reminders, an informed customer is generally a better customer because they feel more in control of the process.”

Vanstory also believes that an online management solution can truly benefit the shop and its staff. “The main advantage to an online solution is in efficiency in operations. If an online solution can eliminate 30 percent of the phone calls in a day, it will free up personnel to focus on other things,” he said. “If the online solution fulfills a need, then it is the right alternative.”

Some management options include maintaining a database of customer e-mail addresses. This would be helpful in marketing shop specials or distributing an electronic newsletter to customers. Maintaining an e-mail database can be time-consuming if it's not done correctly and efficiently. Research different companies to see which one provides the easiest method of maintaining this database.

Expect the Internet to play an increasing role in shop management as software companies begin to offer online editions of their products. The same options that are available on the CD-versions of software programs may be available in the online format. Look for capabilities such as online estimating, online imaging and labor rate information. If an online version of the software is not available, many software companies allow you to download the product from their Web site for a fee. Shop management software companies are highlighted in AutoInc.'s 11th annual shop management software guide.

Paint and the Internet

The paint industry is also integrating with the Internet. A few major paint companies are using the Internet to provide efficient and cost-effective ways for customers to purchase products online. Automotive Refinish Technologies Inc. (A.R.T.), a subsidiary of BASF, operates bodyshop mall.com (www.bodyshopmall.com). Bodyshopmall.com allows A.R.T.'s collision repair facility customers to order BASF automotive paint and associated products over the Internet using a secure server. “The objective of our e-commerce strategy is to improve the supply process for our customers,” said Rick Valin, A.R.T. regional director. “To meet (our customers') needs, A.R.T. must continue to evolve as a leading-edge innovative company, and bodyshopmall.com has proved to be an outstanding example of this evolution.”

Sherwin-Williams has also introduced a way for customers to order its products online. Sherwin-Williams' E-store (http://www.sherwin-automotive.com/estore), offers more than 4,000 paint and associated products. Each product listing has an extensive product description, including detailed instructions on use and benefits, as well as material safety data sheets (MSDS) and product data sheets, if available. “We worked diligently to create an innovative store that offered the same level of service that our customers have become accustomed to,” said Craig Seelinger, director of e-commerce for Sherwin-Williams. “It's truly revolutionary - one that we're extremely proud of.”

DuPont Performance Coatings (DPC) has launched a Web site that can be customized to the user's needs and offers a single point of access to critical collision repair business information. This portal (http://www.performancecoatings.dupont.com) includes training topics, schedules and registration, MSDS, technical manuals, OEM color and technical specifications. Information covers all DPC brands - DuPont, Standox, Spies Hecker and Nason.

For information on paint companies and their products, take a closer look at their Web sites.

About the Poster

For the second year, AutoInc. has developed an “at-a-glance” guide highlighting several companies with an Internet presence. This poster was developed using survey responses and Internet research. AutoInc. does not endorse the companies featured, but has included them as a benefit to our readers. We have included both established and new Web sites to provide the most diverse content. Space restrictions limit us from including all automotive-related sites.

In detailing specific services offered by these companies, we have focused on five general categories: parts ordering, e-mail services, Web development, marketing and management. The companies surveyed selected the categories that best represented their services. We have also included the specialty of each company - whether they cater to the mechanical or collision sectors. In some instances, the companies selected both sectors as their specialties.

If you are considering an online alternative to running your business, we invite you to use this pullout poster to help you research specific companies. Since AutoInc.'s first dot-com poster a year ago, some companies have combined, some have expanded their capabilities, and some have ceased to exist. These companies are evolving to adjust to changing needs of the industry. This technological evolution will continue, making future endeavors unpredictable to industry experts.

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