Thanks to our Partner, NAPA TRACS and AutoFix Auto Shop Coaching

Industry leaders John Hanighen, CEO of Cloyes, Matt Buchholz, CEO of Motorrad, and Andy Fiffick, CEO of a 10 store franchise chain in Cleveland, dive into the current state of the supply chain within the automotive aftermarket, addressing issues of product availability, quality concerns, and the impact of unpredictable demand. Insights into data-driven forecasting, manufacturer-distributor collaboration, and the importance of communication between suppliers and auto repair shops are also explored to give a holistic view of managing challenges in the aftermarket industry.

Andy Fiffick, CEO Rad Air, 10-locations, franchise. Listen to Andy’s other episodes HERE

John Hanighen, CEO at Cloyes Gear and Products. Listen to John’s other episodes HERE

Matt Buchholz, CEO MotoRad

Thanks to our Partner, NAPA TRACS

NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at http://napatracs.com/

Thanks to our Partner, Auto-Fix Auto Shop Coaching

Proven Auto Shop Coaching with Results. Over 61 Million in ROI with an Average ROI of 9x. Find Coach Chris Cotton at AutoFix Auto Shop Coaching on the Web at https://autoshopcoaching.com/

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Thanks to our Partner, Dorman Products.

Dorman gives people greater freedom to fix vehicles by constantly developing new repair solutions that put owners and technicians first. Take the Dorman Virtual Tour at www.DormanProducts.com/Tour

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Tim Allbritten, Director, Business Development and Market Research at BG Products

John Hanighen, CEO at Cloyes Gear and Products

Paul McCarthy, AASA President. Paul has over 23 years of experience in the automotive industry. Prior to joining MEMA, Paul led the Automotive and Industrial Products Strategy Practice at PricewaterhouseCoopers (PwC). He consulted at dozens of automotive suppliers, eight of the top ten global automakers, and at private equity firms and financial institutions. His past leadership roles include heading PwC Germany’s Automotive Strategy advisory practice and leading global forecasting and analysis for a prominent vehicle forecast service, Autofacts. Paul has an MBA from Duke’s University’s Fuqua School of Business.

Find Paul’s other episodes HERE.

Key Talking Points

• It started month 1 of the pandemic 
• Brand names won’t risk quality 
• Every day is a new challenge for manufacturers 
• When is it back to normal? Recast the question “when does it get better?”
• Improving fill rates and collaboration up and down the supply chain
• Data planning is essential for forecasting and making better decisions 
• Allocation- always have the “recipe” 
• Pricing- packaging costs, inflation, supply/demand, raw material pricing by SKU. More questions are being asked which requires more pricing knowledge and transparency. 
• Container pricing- $1,500 to 18,000. Airfreight has also increased. 
• Economic trends- travel is increasing
• It’s a demand problem not a supply chain problem- it is a good problem, heavy dependence on the automotive industry. 

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Important Books

Check out today’s partners:

This episode is brought to you by AAPEX, the Automotive Aftermarket Products Expo. AAPEX represents the $740 billion global automotive aftermarket industry and has everything you need to stay ahead of the curve.  AAPEX 2021 is in the record books and lived up to presenting leading-technical and business management training from some of the industry’s best and brightest. Now set your sights on Las Vegas in 2022. Mark your calendar now … November 1-3, 2022, AAPEX – Now more than ever.

This episode is brought to you by Shop-Ware Shop Management. It’s time to run your business at its fullest potential with the industry’s leading technology. Shop-Ware Shop Management will increase your efficiency with lightning-fast workflows, help your staff capture more sales every day, and create very happy customers who promote your business. Shops running Shop-Ware have More Time and generate More Profit—join them! Schedule a free live demonstration and find out how 30 minutes can transform your shop at getshopware.com/carm

Key Talking Points

• The biggest disruption in the supply chain since World War II- demand coming out of the pandemic, the reason for inflation. Not a singular problem, it’s the entire system being overwhelmed. COVID restrictions with overseas ports. 
• Shipping issues and delays- ports backed up, just being able to get space on a truck or shipping containers. Shipping container fee for the boat is 20K. Starting to use more airfreight. 
• Truck issues- access and drivers
• Raw material shortage- chemicals, oil, microchips, steel etc.  
• Labor issues- working in plants and warehouses. Stimulus is keeping a lot of people at home. Labor inflation
• 7,000 workshops in the USA- busy as they want to be as they manage their capacity. 
• 1 million jobs available in industry plus retirement is a double edge sword. 
• Nearshoring is growing- less supply risk but labor issue is still prevalent 
• Quality issues- competitors with the same part available are made in low-cost countries. You need customer satisfaction, the brands that you long trust for quality are still brands to trust. Top shops want the best quality parts. 
• Manufacturer website- Knowyourparts.com 
• How long will it last? How long will we see this level of demand for repair shops? This year that will have over 11% growth over last year. Next year over 5% growth. 2023 and 2024 growth slow of course, but is still above the pre-pandemic trend.
• Electrification- more opportunity than threat for the aftermarket, be ahead of the curve.

• A special thanks to Bruce Ronning, Brian Norko, Malcolm Sissmore and Paul McCarthy for their contribution to the aftermarket.

• Books Page HERE
• Listen to all Remarkable Results Radio, For The Record and Town Hall Academy episodes.

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This episode is brought to you by Shop-Ware Shop Management. It’s time to run your business at its fullest potential with the industry’s leading technology. Shop-Ware Shop Management will increase your efficiency with lightning-fast workflows, help your staff capture more sales every day, and create very happy customers who promote your business. Shops running Shop-Ware have More Time and generate More Profit—join them! Schedule a free live demonstration and find out how 30 minutes can transform your shop at getshopware.com

IMPORTANT: If you value the distribution channel don’t miss this round table discussion. Learn from a jobber and two service professionals what constitutes a strong business partnership. How important is it and what are the critical components of a strong partnership? (Picture above, left to right: Jim Myers, Dwayne Myers and Bill Nalu)

Why Listen?

If you serve the automotive aftermarket at any level, you’ll need to listen to affirm your strategy no matter where in the channel you serve.

Never take for granted the value of your supplier relationship. These shop owners say it is the most critical.

Learn about the salesperson’s role with the service professional.

Listen to what these shop owners value from their supplier once relationships are established.

The roundtable:

Jobber Jim Myers, President of Eau Claire Auto Parts serving the Chippewa Valley, WI. for 23 years. Jim an aftermarket professional for over 35 years has a team of 45.  He fields sales reps and the service professional is the main focus of his business. He is Affiliated with Automotive Auto Parts Alliance (Auto Value Parts Stores). Seventy-five percent of his volume is to the service professional.

Jim started in the Automotive Aftermarket in high school stocking shelves in the automotive department of a retailer. He decided to move to a larger city to try something different and found a job as a service writer at Nissan Dealership. After 4 long months he got back in the aftermarket and went to work Gates Rubber as a district rep calling on repair shops and jobber stores.  After a few years I moved into a sales position with APS (Big A Auto Parts) calling on jobbers learning from good and not so good store operators.

Eau Claire Auto Parts, started in 1992 with everything on the line. Including loans from friends and family, Jim and his team took over a store that was on track to be closed and never looked back.

Dwayne Myers
Dwayne is a partner at Dynamic Automotive, a top 10 automotive shop in 2014 from Motor Age. They just recently opened their 4^th shop. The Dynamic leadership team are a 2015 ‘Head Of Class’ award winner from the Auto Care Association.

Dwayne and his partners invest their industry time with the Auto Care Association and serve on the education committee with CCPN (Car Care Professional Network). Dwayne has contributed to Remarkable Results Radio Podcast in the past in episodes on his business and in technician training. Listen to Dwayne’s shop owner interview in episodes 2, 3 & 4 along with Technician Training Best Practices; Episode 59.

Bill Nalu form Interstate Auto Care in Madison Heights, MI has 30 years in the business to include some time as a Shell dealer. He and his brother are partners in the business. I call Bill the ‘philosopher’ and you are in for a treat from this wise man as he brings some very fresh perspectives to this discussion.

Bill has been heard in Episode 39 and contributed to the E-Myth discussion in Episode 69 and joined me for the 100^th episode retrospective.

What else surfaced during the interview:

• How can manufacturers make consumer rebates easier and also create an easy button for any technician spiffs. Stop the paperwork.
• Get our manufacturers to communicate directly to our technicians via email.
• When there is a salesperson transition on an account, you can risk your business if not handled properly.
• Shops are looking for more integration among their business management system with their supplier.

Dynamic Automotive web site here.

Interstate auto Care web site here.

Eau Claire Auto Parts web site here.

This episode is brought to you by Federal-Mogul Motorparts and Garage Gurus. With brands like Moog, Felpro, Wagner Brake, Champion, Sealed Power, FP Diesel and more, they’re the parts techs trust.  For serious technical training and support – online, onsite and on-demand – Garage Gurus is everything you need to know. Find out more at fmmotorparts.com  and fmgaragegurus.com