There is a quiet pressure building in the automotive aftermarket.
It is not coming from electrification, regulation or even competition. It is coming from something far more immediate and far more tangible: cost. In particular, the rising and increasingly volatile cost of fuel, and the impact that has on motor factor fleets that underpin the entire aftermarket supply chain.
The automotive aftermarket prides itself on service. Motor factors, in particular, have built their reputation on speed, availability and responsiveness. Multiple daily deliveries, rapid turnaround times and an ability to support workshops at short notice have become not just differentiators, but expectations.
In many cases, they have become the standard.
However, that standard was built in a different economic environment. Today, the fundamentals have shifted. Fuel costs are exceptionally high, vehicle operating costs continue to rise, and labour and infrastructure expenses are increasing across the board. What was once a manageable operational cost is now a significant and growing commercial pressure.
The challenge is not that service has become too good. It is that the cost of delivering that service is no longer aligned with how it is priced.
Motor factors are now operating fleets that are essential to the functioning of the aftermarket, yet in many cases the true cost of those fleets is not fully reflected in the commercial model. Delivery is always treated as an included service, rather than a defined and valued component of the offer.
The more frequently a workshop orders, the more deliveries are required. The more deliveries that are required, the higher the cost to the factor. Yet the revenue generated from those additional deliveries does not necessarily increase in line with the cost. In effect, the system can reward inefficiency and penalise the very businesses that are delivering the highest levels of service.
This is not a sustainable position for the long term.
Other sectors have already begun to address this reality. Across logistics and distribution, it is now common to see delivery thresholds, fuel surcharges or tiered service models that differentiate between standard and premium delivery. These approaches are not about reducing service, but about aligning service with cost and encouraging more efficient behaviour across the supply chain.
The aftermarket has, to date, been slower to adopt these models. Partly this is cultural. The industry is built on relationships, trust and responsiveness. There is a reluctance to introduce anything that might be perceived as reducing service or adding friction.
But the question is not whether service should remain high. It is whether the way that service is delivered and priced reflects the reality of the operating environment.
Introducing modest delivery charges, setting minimum order thresholds or incentivising consolidated ordering are not radical steps. They are practical responses to changing cost structures. More importantly, they can help drive better behaviour across the supply chain.
Garages may initially resist the idea of delivery charges or thresholds. That is understandable. Any change to established practice creates friction. But with the right communication, and with clear evidence of the cost pressures involved, there is an opportunity to reset expectations in a way that benefits the entire ecosystem.
The alternative is to continue absorbing rising costs, which leads to reduced investment, reduced resilience and, ultimately, reduced service quality over time.
IAAF talks about the automotive industry “resetting its contract” with the consumer. In order to do so, we must ensure the sector is as aligned as it can be, more than just through transactions, but that we all appreciate the part every business plays in the supply chain.
The question is not whether the industry can continue to offer high levels of service.
It is whether it can afford not to change how that service is structured.
IAAF welcomes comments and opinions and will share with the membership next week.