Vendor Newsmaker Q&A: Brian Altenberger, Delphi

We describe our relationship with our channel partners as cohesive and cooperative with a genuine win-win interest at heart.  A prime example of this is our involvement in category management where we work with channel partners to develop data driven analysis of their market, identify the needs of their customers, determine the optimal product offering and pricing, as well as the recommended strategy and tactics to successfully go to market.  As practitioners of category management Delphi and our channel partners are able to learn from the data and then make changes in their product management strategy, cataloging, pricing, inventory models, purchasing and stocking strategies, and even in research and design practices.

By taking this collaborative approach to marketing, in a sense, we become a channel business partner. This approach brings significant benefits for both parties because at the end of the day this is all about providing what the market needs; therefore, we all become more valuable to the market.   

All of this is possible today because of the amount of information that is available and shared. This was not the case in the past. In addition, at Delphi we contribute OE Service and OEM data and expertise to complement the aftermarket Point of Sale (POS) information resulting in a very robust go-to-market strategy.

How important is full line coverage to your supply partners when compared to factors like price?

Coverage is important, but full line coverage from each supplier is not as important as it used to be. It is important that a warehouse distributor (WD) have full coverage but it is not important that it come all from one supplier.  Channel partners have learned at the distribution and jobber level that you can put together a product line from multiple vendors based on shop needs. A shop doesn’t care if one supplier has full line coverage; their focus is more on quality and availability across product lines. At Delphi our role is to help customers get the highest quality part that meets their needs exactly when they need it. In addition, the technicians are buying from the vehicle application level which is forcing our channel partners to be much more specific. We help support our channel partners by providing a very clear view of the car parc opportunities at the vehicle level in their markets and identify which Delphi product is on those vehicles. We also reference part failure rates as well as OES sales of the same parts to identify the gaps. This is something a traditional aftermarket supplier could not do.

What are some ways in which your channel partners can improve the relationship with your company?

We want our channel partners to continue to embrace category management as an opportunity to work together and strategically deliver what the market needs. It is a win-win formula for success. We acknowledge it is a different way of doing business and requires involvement and commitment from both sides. For instance, they need to be willing to share POS data – to work collaboratively.  But the result is delivering what the market wants…and there is no better way to go to market than that. We will all sell more products and increase inventory turns at the end of the day.

At an industry level, warranty cooperation is needed from our channel partners. High warranty claims can literally steal profit at all levels of the distribution channel. We feel today’s warranty status quo is unacceptable for anyone’s business model. Therefore, an industry-wide look at warranty would benefit everyone. Whether it is consistent standards that are developed or effective educational tools on how to work through warranty claims, making it a united effort would take us a long way towards an acceptable warranty level.

Another way that channel partners can work with us is on the need for paper catalogs. Paper catalogs are not only an issue for the environment, but they are also have been replaced by online part look up which has grown significantly over the last several years. Today manufacturers are still required to spend hundreds of thousands of dollars on paper catalogs. We should question ourselves as an industry on whether or not it is the time to eliminate paper catalogs altogether.

How has the role of the factory field sales rep changed over the past five years?

I can only speak to the sales reps here at Delphi and I have to say their role has definitely changed over the past five years.  As technologies have evolved and become more complex as a result of the Vehicle Electronics Revolution, sales reps are now expected to know more about the technology. In addition, they have become savvier on working and managing inventories as part of Category Management which means they are no longer just writing orders but helping find ways to improve their customer’s business. Today sales reps are more focused on data, car parc, and failure analysis in order to improve customer turns and inventory. They still need to make sure the part is there, but Delphi’s sales reps have evolved to a different business focus and are striving to be more of a business partner.