Program Distribution Groups report 2017 progress, achievements

Jan. 2, 2018
Perhaps no program distribution group has gone through more recent changes than Advance Auto Parts, which last year replied to the Aftermarket Business World Program Distribution Group report with the Carquest name.

Perhaps no program distribution group has gone through more recent changes than Advance Auto Parts, which last year replied to the Aftermarket Business World Program Distribution Group report with the Carquest name.

To better serve its customers, the entire professional network at Advance – including Advance Professional, Carquest, Worldpac and Autopart International – was brought under the common leadership of Bob Cushing, executive VP, Professional at Advance. Under his leadership, the professional enterprise has implemented programs to offer shops more access to the parts, services and solutions they need to grow their business.

Advance also took a focused look at its supply chain and in many cases, took new approaches to assortment and product distribution. Additionally, the group has leveraged technology to improve the customer’s parts ordering experience, including the rollout of a unified catalog and new B2B platform. The company also continued to measure and optimize order-to-delivery times, implementing telematics in its fleet management.  

The company said it will deploy cross-banner visibility to give customers access to a broader range of product inventory in one place than they’ve ever had access to before from Advance, Carquest and Worldpac. Advance also plans to grow the number of TECHNET member shops and expand its technical and business training programs offered through Carquest Technical Institute and Worldpac Technical Institute.

The AAM Group said its biggest achievement of 2017 was delivering PACE, a business-to-business (B2B) complete cataloging and order-entry web service. PACE was created at the direction of its membership to address changing customer-experience expectations. The wholesale customers of many of AAM Group’s members were having to catalog product on a brand’s website, then go to the WD’s site to order.

PACE not only eliminates the friction of those multiple steps, but also provides enhanced cataloging with the inclusion of rich media and optimized data. PACE offers WDs reporting services that provide visibility to transaction history, lost sales and sales opportunities via user-interaction tracking.

AAM also grew significantly in 2017 by welcoming three new group members. All located in the Southeast, these additions address an underrepresented geographical region for its programs. AAM also grew in terms of brand engagement, with a nearly 10 percent gain in participating vendors.  

AAM said that one of its main challenges for the next 12 months is technology, which also is an opportunity. “Changes in customer expectations created by marketplaces and sellers like Amazon must be addressed,” said CEO Tim Odom. “Technology is affecting product merchandising, gross profit margins, and logistics.

“Perhaps our greatest challenge is to educate and engage 14,000 independent resellers, encouraging them to make the changes they must to remain viable,” Odom said. “Consumers still seek local brick-and-mortar options, but they have customer service expectations that aren’t often met by our many diverse resellers of aftermarket accessories and performance parts.”

Aftermarket Auto Parts Alliance launched the new Auto Value and Bumper to Bumper Technician of the Year program.

The company’s 2017 national technician promotions included Give ‘Em Hellcat, The Great Hawaiian Getaway, Perfect Stop Powersports Giveaway, Road Warrior Weekend, and The Kentucky Horsepower Corvette Giveaway.

The Automotive Aftermarket Management Education Award in 2017 went to Bob Joynt, training manager at Auto-Wares Group of Companies; the Pursuit of Excellence Award to Corey Bartlett, President of APH, and Fletcher Lord Jr. of PWI was induced into the Arkansas Business Hall of Fame

Automotive Parts Associates said its 2017 achievements included Nexus North America/Nexus International membership, its national accounts program, and enhancement of the Professionals’ Choice Service Center nationwide warranty program offering.

Engine Pro said it added many new products to its Engine Pro line, including: Diesel pickup truck camshafts and valves, Nitro Black roller lifters, Nitro Black “SS” series piston rings, New Engine Pro/Fel-Pro performance gasket sets, New LS Chevrolet parts including silicone rubber gaskets.

Federated Auto Parts said 2017 was another successful year for Federated membership. Strong supplier relationships, enhanced technology, beneficial customer support programs and a flourishing partnership with National Pronto Association (known as the Automotive Parts Services Group, will hold its first fully combined membership meeting in Spring 2018) have positioned Federated for continued growth in the coming year.

Federated recently added several new members and, along with acquisitions by current members, the group is thriving. Evolving technology continues to be a major focus. By taking into account the data needs of its members and customers, as well as seeking seamless integration with manufacturers and other industry partners, Federated continually invests in technology to increase efficiency and ensure accuracy throughout the supply chain.

The Federated Car Care Center program features business-building tools to help service provider customers effectively compete in their local markets. In addition, Federated provides repair shops and professional technicians with extensive training through The Group Training Academy and is working closely with supplier partners to provide even more training opportunities.

A highlight of the comprehensive Federated marketing program is the Federated Auto Parts 400. Federated recently entertained more than 1,800 members, suppliers and customers at the pivotal NASCAR race in Richmond, Va., and has announced the renewal of this title sponsorship for the 2018 race.

National Pronto Association said that 2017 was a very good year as it strengthened its collaboration with Federated Auto Parts through the Automotive Parts Services Group.

It also continued to focus its global growth initiatives with its European partner AD International with the 1Parts organization. Its supplier partners have recognized these efforts and the company continues to build true sustainable supplier partnerships with its successful performance.

Specific to National Pronto, the company continues to add to its membership in new markets with best-in-class distributors. The company widened its scope within The Group Training Academy with additional content specifically designed for the professional service technician and it continues to refine its Pronto Smart Choice Service Center program with outstanding value-added service and marketing support.

TruStar added new suppliers to its TruStar Distribution Center and improved order fill in 2017. It also Increased TruStar member WD’s.

The company launched a new versatile business management system with full integration capabilities, and improved communication through TruStar E-News.

Editor's note: Information for this article was gathered from the 2018 Program Distribution Group report, an annual research project conducted by Aftermarket Business World. The 2018 report was published in the January 2018 issue of Aftermarket Business World magazine.

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