And nearly every presenter at the 2007 Global Automotive Aftermarket Symposium highlighted this simple need that can further the aftermarket. After all, communication is key to "Survival in a Changing Aftermarket," the theme of this year's event, which took place in Chicago in early May. From communicating in terms of technology standards to better training and working with the growing Latino population in the United States, getting your point across clearly is important.
Northwood University President and CEO Keith Pretty says the world is getting "flat," creating a more competitive landscape than ever before, which emphasizes proper industrywide communication as it relates to data standards.
"All aspects, all parts of the world are able to take part in the economic system today, unlike many points in our history in the past," says Pretty, who moderated a technology panel at the event. "And because of this, global competition has increased the demand for skilled human capital and for natural resources."
With ever-expanding SKUs, distributors rely on communication more than ever to manage products up and down the chain.
According to former Advance Auto Parts Executive Vice President, Merchandising and Marketing, Dave Mueller, trying to re-sort and move inventory around to various stores and through various supply chains is a challenge.
But what complicates matters even more is parts that were needed in the market at one point are now obsolete, and new parts have filled their spot. By sharing data, manufacturers, WDs, retailers and service and repair outfits can address the issue of parts proliferation and manage inventories, says Mueller.
"We really need to begin to forecast together — to look out the windshield, instead of the rearview mirror," says Rusty Bishop, CEO of Federated Auto Parts.
Communicating with customers is an important business tool, and is also a point of similarity between the aftermarket and otherwise competing OEMs.
"We are all in the business of taking care of the customers who drive cars and trucks in the United States," says Nancy Fein, vice president of customer services for Lexus. "That's our business." She told attendees that Lexus' survival as an OEM is important to even the aftermarket. And both need superior customer service not only to survive, but to thrive in today's marketplace.
Speaker Bob Lutz, GM's vice chairman of global product development, echoes this message: there is plenty of room for everyone in the realm of automotive accessories.
"We encourage anything that generates interest in our cars and trucks," he says.
A repair shop panel outlined ways to offer better training to technician customers and the need for proper training in all parts of the supply chain.
For example, George Witt, owner of George Witt Service, Inc., in Lincoln, Neb., decided to close his shop and take all his employees to a two-day NAPA time management class. But the decision paid back in dividends.
"I had my money back within 60 days, and it enabled me to increase my shop sales by about $20,000 a month," says Witt. "So over the next 12 months, that was a quarter of a million dollars from one class, two days."
Reaching out to other cultures within the country is equally important, especially reaching out to Latinos.
The Latino population is the largest ethnic minority in the United States, says Kelly McDonald, president of McDonald Marketing. "There are more Latinos in the U.S. than there are Canadians in Canada."
Another important point to consider is Latinos differ from other consumers, McDonald adds. For example, passion drives a lot of their spending, and they spend 104 percent more on audio equipment than the non-Latino population. But they also spend 22 percent more than non-Latinos on parts and accessories, which is good news for the aftermarket industry.
Dennis DesRosiers, president and founder of DesRosiers Automotive Consultants in Ontario, Canada, points out that the aftermarket has mastered the "soft variables" of doing business, while the OEMs have become experts at "hard variables," like warranties, equipment and technology.
"And the reason that you're still the dominant player — losing share year in and year out, but still the dominant player — is because this industry knows so well how to do all the soft stuff...the relationships, the trust, those kinds of things. If the car dealers ever learn the soft variables, then the independent aftermarket would be in real trouble."
