Kevin Freeland, COO of Advance Auto Parts, gave a synopsis of the biggest changes the aftermarket has seen and, in essence, a step-by-step guide of what to consider in order to remain profitable.

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Both Advance and other players in the aftermarket have an enhanced ability to import directly from low-cost countries. But it is not all about price. People putting more and more focus on quality as well, Freeland says.

Foreign car growth is also changing our industry. Coverage is becoming very broad and includes many foreign manufacturers. This is also helping to boost business for import specialists.

Pricing has become more sophisticated. Companies are using more advanced analytical techniques to price products. There is also a great deal of monitoring of competitive pricing.

The Internet has given a transparency to pricing for DIYers. On the commercial side, price has risen to the No. 3 consideration when looking to make a purchase, but there is also a great importance put on relationships.

“The sense of urgency in our products is higher than I’ve ever seen. The industry supply chain must get faster,” Freeland says. Advance has expanded parts offerings in stores and invested in technology to make sure each store has the best possible product mix to meet demand.

O’Reilly Auto Parts has built a reputation on daily part replenishments in stores, while Advance and many other stores provided weekly replenishments, Freeland says. But based on consumer response, Advance opened its first daily replenishment center, and that is the direction the company is going to follow going forward.

“This is our response to the customer who is telling us speed is very important,” Freeland says.

The industry is also becoming more electronic, and in no place is this more evident that with catalogs. Customers want information faster and electronically, and studies show that the more information customers can access about a suppliers’ products online, the better the chance of securing a sale.

And  nearly 55 percent of auto parts sales begin with online research. “This has a profound impact on our industry and on you,” Freeland says. Customers are looking for part availability, what part they need and where it is available; but only a small portion of these parts are then purchased online.

Triangle Award
Bob McKenna, president and CEO of MEMA, named William Glasgow, Sr. the recipient of the MEMA Triangle Award. “For more than 20 years, Bill has directed his family-owned and operated trade show management firm. If you had to pick one thing, it would be Bill’s hard work and dedication that has made AAPEX what it is today,” McKenna says.

“I think my two sons said it best when they said, ‘Dad, we think you’ve had a good run.’ And I have. I’ve enjoyed every minute of it. I have met some very wonderful people, and I will miss each and every one of you,” Glasgow says. “AAPEX has been a great show for the industry and will continue to be so because of your support. I can’t stress enough how important it is to give your feedback and help you associations keep AAPEX at the top of the pile.

McKenna also reiterated two management changes — Steve Handschuh, AASA president, will transition to MEMA executive vice president and chief operating officer, and Bill Long has been named AASA chief operating officer, both effective Nov. 1.