Rochester, New York—Third generation Hahn Automotive Warehouse employee Joshua Futerman, reflects on the virtues of business relationships taught by the elder Futermans who built this house. Hahn Automotive, which serves scores of family-run jobbing stores and the service mechanics shops, faces a sobering test of living up to customer loyalty expectations while they cope with the financial anxieties inflicted by Covid-19.
Considered one of the Alliance group’s most influential members whose 90 outlets and 40 distribution centers cover much of the Midwest onto the Northeast, Futerman talks earnestly about the supply chain.
Aftermarket Business World asks Futerman how Hahn’s vast network is backing the industry’s essential businesses to win on the front lines. What’s more, as the industry wades into a post-coronavirus marketplace, Futerman reveals other best practices for stable periods.
When the pandemic broke out what kinds of bottlenecks or pain points did Hahn Automotive anticipate?
Coronavirus is unlike any challenge that Hahn and industry have had to endure. Remember that overnight across the country the authorities instructed people to stay at home and off the streets. As for supply bottlenecks, we were not concerned about sourcing products. Personal protective equipment categories like face masks, gloves, and cleansers that we typically stock have certainly been difficult to track down. But that is because the entire world is looking for it and understandingly so. Healthcare and first responders are receiving those supplies before the automotive aftermarket. Once the pandemic begins to subside and our economy starts to reopen, I believe that there could be supply issues with inventory. I also believe that pent-up demand is building. If the economy struggles to rebound or recovers slowly, many people may invest in repairing their vehicles before thinking about buying a new one. I see that as a positive for the aftermarket.
Which categories have been impacted? How are you managing to keep the goods flowing from point ‘A’ to the last mile?
So far, during this pandemic, supplier fill-rates have not been a problem. I’ve seen a few anomalies, but nothing startling. Hahn has not cut delivery to its commercial customers. Timely arrivals are something that we are proud of and something that we think about regularly. Business is certainly slower. But as our industry is deemed essential, our customers are supplying inventory to local municipalities who need those components for emergency vehicles and for other essential workers who must travel to and from their destinations.
What lessons have you learned from these past few months?
At Hahn, we have been carrying out our vision since 1958 when my Grandfather, Michael Futerman, started the business. Up until a few months ago, I would have told you that there was little that this company has not already endured. We have had numerous natural disasters that impacted our business. We have endured financial crises over our 63 years in business. We have had many challenges, but nothing like this global pandemic. I do not take anything for granted, and I feel fortunate to be involved in this great industry, work with my family, and serve our team at Hahn. These are undoubtedly challenging times, but we will get through this. In the end, we will become a more reliable distributer because of the challenges we have faced.
What are the essential best practices to win over the commercial automotive service segment and the do-it-yourself consumer?
I reflect on the practices taught by my grandfather, father, and uncle, which are still extremely sound. The keys to success in the commercial automotive service segment are having strong channel partners to provide reliable and high-quality parts. Employing loyal and hardworking individuals to service the customer base, ensuring service levels are operating at the highest rates. And arguably most important, nurturing healthy relationships with our customer base.
As a third-generation contributor, I take pride in the relationships that we have fostered with our customers. I think that a lot people say that their industries are relationship-focused, and I trust many are, but I believe the commercial automotive segment is unique. There are still a lot of family-run jobbers and service mechanic shops out there. People like to do business with people who they know and can trust. I do not think much changes concerning the do-it-yourselfer (DIYer) consumer other than that service needs to be held at a higher standard because it is tough to rely on the relationship if service levels fluctuate for any reason. The DIYer consumer might not have as much loyalty as a commercial customer might have with us.
How is e-commerce changing the movement of goods?
I do not think e-commerce is changing how the goods are moving. I think the increase in e-commerce is changing the expectation as to how quickly goods are moving through the supply chain. Large online retailers continue to try to speed up the time it takes from order to delivery. Note however, that the mechanic has always expected quick delivery of parts ordered. Amazon, Walmart, and other large eTailers have shifted the expectation with how long it should take to receive an online order by introducing inexpensive second-day, next day, and in some cases same day shipping. This concept is relatively new compared to what shop owners and jobbing stores have expected for a much longer time.
Describe what makes Hahn Automotive unique in its inventory management requirements and making its product categories accessible to your target customer base.
We enjoy well-established relationships with our vendors. Between our internal team and the Automotive Aftermarket Alliance Group, we regularly review categories to ensure we have the correct offering on the shelf for our customers. It is unrealistic to stock one of everything. Still, we use various models such as the Alliance’s Data Warehouse & Inventory Optimization Tool to review current inventory and new inventory suggested by our vendor channel partners.
