Although program groups, warehouse distributors, suppliers and installers all may have different roles and expectations in the supply chain, at the end of the day they all have the same goal — to sell parts.
Four industry representatives — Mike Lambert, President, Automotive Distribution Network; Corey Bartlett, President, Automotive Parts Headquarters, Inc.; John Tillema, owner/operator, Lincolnway Auto Supply; and Pat Weber, owner, Weber Automotive Service, Inc. — came together to discuss the supply chain and challenges during the Global Automotive Aftermarket Symposium May 16 in Chicago, Ill.
Managing and meeting expectations can be a challenge for the four entities, but open communication is the key to overcoming challenges, the panelists said in the session, titled “What’s driving the supply chain?”
Weber carries $150,000 of inventory in his shop. An outdated approach, the other panelists agree. But one that program groups approve of. “Instead of a dinosaur, I’ll call you a gem,” Lambert says, commenting that installers who carry $25,000 to $50,000 of inventory are even rare. Put instead of being a hindrance, Weber views his inventory stockpile as a help. “If I can keep a tech working, it is worth it,” he says.
Tillema and Weber do electronic parts ordering, but they both stress the importance of double checking and really paying attention to ensure you are ordering the correct part the first time. But electronic ordering can be riddled with pitfalls because the system “doesn’t always tell you everything you need to know to order,” Weber says.
Program groups are encouraging online ordering as it is more efficient. From a WD perspective, Bartlett says they like digital ordering, but also want to continue to foster personal relationships with their customers.
Regardless of supply chain preferences, one thing remains certain — the supply chain continues to change and evolve. The most valued counterman of 25 or 30 years ago was one who knew all the product information. The most valued counterman now is one who can manage six catalog screens at once and navigate all systems, Barlett says. Technical know-how is key, and one that takes dedication and commitment.
“If you are going to be in this business, you have to eat, sleep and drink it,” Weber says.
He also stresses the importance of fostering a relationship with dealers in order to get the repair information you need to ensure proper parts are being ordered.
“You’ve got to let them know they matter to us,” Weber says of dealers.
Although dealers are vital sources for information, Weber does not turn to them for parts purchases. “When my primary supplier does not have a part, I have a system set up for who I go to next. And it is NOT the dealer. You have to have a network set up to keep the OE out of the picture. Keeping business in the aftermarket industry, that is my primary goal,” he says.
The supply chain is also being challenged with online progression. Online shopping, which continues to grow, poses a challenge for many aftermarket businesses. They could be losing business without knowing it because they have no opportunity to interact with a customer beyond the price point information.
Social media is gaining momentum in the industry, but some are slow to adapt. Lambert remarked he did not use Twitter, but Weber is on the other end of the spectrum, filming service videos for YouTube, showing AutoNetTV videos in his waiting room, encouraging customers to make appointments online and using Facebook to reach out to other existing or potential customers. And Weber says going forward, aftermarket businesses need to get on board with social media.
He encouraged WDs and manufacturers to partner with him on social media efforts to boost awareness for their brands and his business. By partnering together, WDs, manufacturers, suppliers and installers could begin to educate the consumers about what they have to offer and why they should buy it. The end goal is to get land a sale. “We need to get them back in our stores and off the computer. We need them to come in and look at this [inventory],” Weber says.
Going forward, the panel hopes to further focus on and improve communication throughout the entire supply chain, recruitment to the industry, data accuracy and utilization and succession planning, among others.
