24 Customer Service Requirements Consumer demand for same-day repair service and the need to maintain efficient use of repair bays, forces automotive service providers to demand prompt and accurate delivery of specific parts and tires from their suppliers. Getting the required product promptly depends on all the parties having access to timely information about product price and availability. To meet these demanding customer service requirements successfully, automotive aftermarket participants need business management systems, product information and online services that enable workers to reliably and accurately transact their business between warehouse distributors, parts stores and automotive service providers. Regional Efficiencies The use and availability of a combination of business management systems, information products and online services has resulted in the development of regional trading networks among auto service provider chains, stores and warehouse distributors of parts and tires. This enables participants to achieve the efficiencies and customer service levels that are critical to being competitive and successful against the larger retail and service chains in
the automotive aftermarket. Areas of Growth
We expect growth in the automotive aftermarket will continue to be driven by:
· gradual growth in the aggregate number of vehicles in use;
· an increase in the average age of vehicles in operation;
· fewer new vehicles being purchased due to a slowdown in the economy;
· growth in the total number of miles driven per vehicle per year; and
· increased vehicle complexity.
Plans for Growth We see opportunities to expand the breadth of our client base within the automotive industry and diversify into new industries with similarly complex needs. We plan to offer tailored business management and distribution software to the wholesale distributor market of the automotive industry. We have also started to expand and diversify our client and product mix in the
U.K.to serve the lumber and hardware industries, which we believe have an unmet need for the efficiency offered by our suite of business software solutions and services. Our growth plans include adapting and updating our software products to serve other vertical markets as well as through potential acquisitions.
Additional Vertical Markets: Plumbing Merchants, Electrical Wholesalers, Builders Merchants and Lumber Merchants.
We believe that construction-related businesses would benefit from the business management and distribution systems developed by
MAM Software Ltdfor its customers in the automotive aftermarket. We already have over 50 clients in the UKand Irelandoperating in the plumbing, building, lumber, and electrical wholesale distribution markets that are using a derivative of MAM Software Ltd.'s Autopartproduct, known as "Trader." We originally moved the Autopartproduct into these additional vertical markets a number of years ago after being approached by companies operating within these vertical markets that could not find a management solution that satisfied their requirements. To date, these additional vertical markets have made only a limited contribution to the revenues of MAM Software Ltd.