Bruce King, owner of King Collision Centers in Massachusetts, is looking at vendors to help him drive changes at his two shops. He is working to create a lean process for his business based on the book The Machine That Changed the World by James P. Womack, Daniel T. Jones and Daniel Roos, which describes Toyota’s operational model of efficiency.

“The whole idea of a lean process is the ongoing elimination of waste from your operating system,” says King. “The auto body system is wrought with inefficiency and the vast majority of the problem is the lack of any defined operating model, so we are working to change that in our shops.”

In order to become more lean, King is challenging his vendors to create a more streamlined supply chain model. “The old system is antiquated and a waste of time,” says King. “I want my account manager to come to present new products that will save me time and money.”

One of King’s suppliers, paint distributor FinishMaster, has changed its operating model to service customers in new ways. “We recognize that our job has evolved from an order taker to that of a consultant, so we work hard to understand our customers’ business models as much as we do our own,” says Steve Arndt, vice president of sales for FinishMaster.

King said he expects assistance from his suppliers with inventory. He understands that suppliers need to offer a variety of products to accommodate a diverse clientele, but he wants his suppliers to differentiate what they offer to his operation.

“I want to shrink the number of part numbers we carry in order to make our inventory more efficient,” King says. “I want to limit the parts numbers that my employees can actually order from a given supplier to prevent waste.”

To address this problem, FinishMaster offers to manage inventory for its customers. Central Collision Centers in Chicago uses this service. “By being able to track our usage and purchasing habits, our account manager can accurately anticipate what products we need and when,” says Mike Fitzpatrick, general manager for Central Collision Centers. “This has reduced our inventory investment by 30 to 40 percent and, as a result, has freed up valuable capital.” Fitzpatrick says having the correct inventory increases labor productivity since technicians no longer have to wait for a product to be delivered. 

As suppliers evolve into consultants rather than order takers, look for them to provide even more products and systems. Suppliers simply taking orders may soon be a thing of the past, but the change will create more efficient business models for the auto body industry. Operators should look to their suppliers for programs and products to make their operations more profitable and more efficient. By working with their suppliers, operators can create a service model that fits their individual needs.

Marcy Watson is the president of Elpama Communications, a public relations and marketing firm specializing in the automotive aftermarket. She previously was the editor/publisher of ASO - The Auto Services Operator Magazine, a national trade publication for the fast lube and car wash industries.