Distrigo Parts Distribution
Stellantis' Multi-Brand Parts Distribution Network
Stellantis, a powerhouse in the automotive industry, was born from the union of Fiat Chrysler Automobiles and PSA Group in 2021. This merger paved the way for the launch of Distrigo, a global initiative designed to streamline the distribution of car parts.
Distrigo's mission is to supply both Stellantis' authorized dealers and independent repair shops with a wide array of car parts: everything from original equipment manufacturer (OEM) parts to aftermarket and remanufactured options, catering to all types of vehicles and customers.
The roots of Distrigo trace back to 2016 when the PSA Group, before merging into Stellantis, initiated a multi-brand parts distribution activity in France, Belgium, and Luxembourg. This move was part of a broader strategy, encapsulated in the "Push to Pass" plan1, aiming to revolutionize after-sales services by providing a comprehensive parts distribution network across Europe.
Distrigo represents PSA’s ambition to serve all customers, regardless of their vehicle's brand, age, or the channel through which they choose to purchase parts - declared PSA Aftermarket in a press release.2 The initial goal was to ensure that whether a customer opts for an authorized repairer, an independent shop, or online purchasing, they can access the best products in terms of service and price.
As Distrigo expanded across Europe, South America and China3, it transformed into a one-stop shop for multi-brand replacement parts. This expansion wasn't just limited to offering parts for Stellantis brands but extended to embracing the entire independent auto repair market globally.
Distrigo is offering a "360 degree" product range consisting of:
Genuine OEM parts carrying the Mopar global brand for Stellantis vehicles, about which we will touch later on
Premium aftermarket parts under leading European brands such as Mahle, Schaeffler, Nissens and Bosch
Exclusive Eurorepar private label parts
Remanufactured, repaired and recycled parts under the SUSTAINera circular economy brand
This comprehensive selection aims to fulfill the diverse needs of Stellantis' retail and independent customers, ensuring access to parts for both new and older models. Through centralizing and integrating parts distribution under the Distrigo brand, Stellantis aims to simplify the process of acquiring car parts for repair professionals everywhere.
In July 2023, Stellantis brought aftermarket parts for its Alfa Romeo, Fiat, Fiat Professional, Jeep, and Lancia brands into Distrigo's distribution fold.4 This added six brands to Distrigo's catalogue, joining the existing Citroën, DS Automobiles, Opel, Peugeot and Vauxhall brands for a total of 14 Stellantis marques covered:
• Abarth
• Alfa Romeo
• Chrysler
• Citroën
• Dodge
• DS
• Fiat
• Fiat Professional
• Jeep
• Lancia
• Maserati
• Opel
• Peugeot
• Ram
• VauxhallAs of March 2023, Distrigo's European network consists of 148 parts distribution hubs and 289 smaller Distrigo Relay and Distrigo Market locations, covering Stellantis' full range of brands.5
Titi`s Take:
Distrigo has all the assets to become an important player at an European level. Distrigo solves the three shortcomings of OEM parts distribution projects so far: stock, fast delivery and a high-performance e-commerce platform. We could also add here the possibility of offering an increasingly better price, negotiations with suppliers being facilitated by a rapidly rising sale.
Distrigo’s IT Inovations
In 2018, the Supply Chain Department chose to collaborate with KBRW to develop a new app aimed at enhancing customer service at its Distrigo logistics centers. Named "Power Supply" this app updates delivery timelines for pending orders on a daily basis with high precision and suggests alternate parts. The introduction of “Power Supply” significantly reduced the number of pending orders at Distrigo hubs by almost half, and as a result, the Groupe PSA call center dealing with claims was shut down. The app was developed quickly and was fully rolled out across Europe by the end of 2018, completing the entire process in less than a year—a notably swift achievement.6
At the same time, Distrigo has enhanced its supply chain technology, allowing for more precise inventory management down to the specific part number on a regional basis. By utilizing machine learning, the system can more accurately forecast and allocate stock for parts in high demand, accommodating the increase in orders as purchases move online.7
Titi`s Take:
I have seen many IT systems in the last 25 years, but I have not seen one that was declared valid in the first year of use. I think that there is a lot of manual work behind it - no matter how much machine learning is used, it is difficult to build a high-performing system so quickly. I hope that cyber security is one of the concerns too and will at least be developed and ensured by a company established in the field.
Regarding the stock generated by this super intelligent program, I think that the adjustments are a necessary evil, especially since in 80% of the cases they have to be done to increase the stock and not to decrease it.
I look forward to seeing the results: and the results are seen when customers check stock availability.
Distrigo’s Expansion in Europe and New Markets
Since Distrigo originated in France, Belgium, and Luxembourg, it is not a shocker that it has long-standing operations in those areas. Distrigo has expanded across all of Stellantis' major continental European markets, which includes:
France
Italy
Spain
Portugal
Germany
United Kingdom
Poland
Other Central and Eastern European countries
Recently they claimed to focus on growing presence in Italy, UK, Germany, Belgium, Netherlands, and Scandinavia. Distrigo also stated the goal of establishing nationwide delivery capabilities in each European country.
In short, while an exhaustive list of countries is not available, DISTRIGO likely has an established presence spanning most of Stellantis' key continental European markets. The network continues to expand density and coverage within these countries to achieve comprehensive national distribution.
Titi`s Take:
Opening so quickly in so many European markets shows that Stellantis is determined to play an important role at the European level. On the other hand, my experience is telling me that such a fast replication can only be done through the copy-paste model, without accounting for the local specifics. If this is the case, this move will not help the business prosper everywhere, but only where the business model is similar to the one originally copied.
Unfortunately this is the mistake made by most multinationals that try to enter several markets at the same time.
In my opinion, it would be much wiser to maintain the current supply logistics model and tailor the other aspects of logistics, sales, and marketing to suit local market conditions. The experiences of other companies of similar size have shown negative outcomes, primarily because they overlooked one crucial fact: THE MARKET REGULATES EVERYTHING, not only the largest competitor.
Distrigo in Brazil
In January 2024, Stellantis acquired a 70% stake in leading Brazilian automotive parts distributor Comercial Automotiva/DPaschoal. With over 120 retail stores and 28 distribution centers across Brazil, the acquisition makes Stellantis the largest independent parts distributor across South America. The well-established Comercial Automotiva/DPaschoal business also provides specialised services like financial products and professional training.
With a team of nearly 3,000 employees and generating a turnover of 480 million euros in 2023, Comercial Automotiva/ DPaschoal remains a major player in the market. Luís Norberto Pascoal will retain the remaining 30% of the shares and will continue as vice-chairman, continuing his legacy.8
Titi`s Take:
I really like the idea of opening to emerging markets simultaneously with the opening of important European markets. A lot of know-how is obtained from making this move because the established management of the company remains in position and will always try to correct what is wrong for the local market. I hope that this management will hold on as long as possible and not abandon such a construction too soon, choosing the money instead of a project that can prove not only successful but a major one in this market.
Distrigo in China
China is another strategic market where Distrigo is enhancing access to aftersales parts supply channels.9 In 2023, Sylvie Layec - Senior Vice-president Parts and Services, Sales and Marketing global at Stellantis - declared: “In China, we chose to buy three independent distributors to become the fourth largest parts distributor in the country.”10
Titi`s Take:
I don't have the expertise regarding the Chinese Aftermarket distribution market. What I do know is that it's a difficult market to cover and satisfy, especially with OEM parts. I wish Distrigo for this to be a successful experiment!
Unifying Under The Mopar Brand
In another move to unify its brand presence in the global aftersales market, Stellantis announced in 2023 that it will transition away from Global Parts Distribution (GPD) to using the Mopar brand for packaging on all genuine OEM parts. Mopar has a strong heritage in the Chrysler and Dodge brands as well as motorsports, and has delivered great success for Stellantis in the North American market.11
With Mopar genuine parts generating around 70% of Stellantis' global parts profitability, growing brand recognition worldwide under a single global brand is a strategic play to support aftersales growth. It also simplifies branding and packaging logistics rather than covering multiple individual brands.
The transition to Mopar branding will happen gradually as regions transition parts distribution to Distrigo platforms and replenish inventories. While this changeover is underway across markets, customers will still find the same OEM quality Stellantis parts under the unified Mopar name.
Titi`s Take:
The unification of OEM brands under the MOPAR brand is a good idea in principle. What I fail to understand is how the information will reach the European market of independent repairers and car owners that MOPAR is an OEM brand.
Yes, it’s true that in the USA the MOPAR brand is an already established brand, especially in the world of car enthusiasts, both for diversity and quality. But from here to reuniting the 14 OEM brands under one name is a long way and a colossal marketing/branding uphill battle.
It was difficult enough to introduce the Stellantis brand (although I imagine that the top management has the impression that the problem is solved already...) and they still have a lot of work left to do.
Now it will prove even more difficult in the eyes of various market players to have Stellantis swapped with another brand, even if it’s the America’s classic MOPAR we are talking about.
I know from experience how difficult it was to introduce quality American brands (e.g. Arvin Meritor, Penzzoil) to the European market and how quickly they were forgotten.
Final Conclusions
Distrigo is making significant strides in enhancing Stellantis' approach to digital and physical distribution networks. By reducing complexities and improving efficiency, Distrigo is setting Stellantis up to fully leverage the ever-green opportunities in online parts sales. By integrating scalable distribution capabilities with a robust portfolio of brands, Distrigo is positioning itself as a pivotal player in driving Stellantis’ next phase of growth, even though their success in so many different markets still needs to be proven.
In summary, Distrigo's strengths lie in its extensive distribution network, its wide range of products and brands, its adept supply chain management, its centralized distribution approach, and its potential for international expansion. While there are a couple of things to still figure out, this combination of factors is key to unlocking new growth avenues for Stellantis.
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