P
ROGRAM GROUPS
By Mike Lambert, President, Automotive Distribution Network
As the fleet... transitions out past the extended warranty period, emissions and drivability items will have a greater replacement rate.
52
What product categories are benefitting most from Americans holding onto their vehicles longer? The aging vehicle fleet has to be maintained. Normal wear items such brakes, chassis, and shocks will always benefit from older vehicles. But as the fleet, that is now exceeding 11 years of age, transitions out past the extended warranty period, emissions and drivability items will have a greater replacement rate.
distributors first, and we will sell what our customers want and what we have the ability to deliver.
How important is data/data warehousing to your operations? This has become one of the most important areas and services that our association provides. As parts proliferation continues to grow, the proper data in modeling inventories is the difference between success and failure.
What effect is legislation having on your group’s need to warehouse parts? For example, additional SKUs to fulfill emissions requirements set forth by California, Maine, New York? If it is the law of the land and our customers require the parts then we will add them to meet their needs. Parts proliferation, while costly, is what differentiates many distributors from the retailers. So we are here to serve our customers and we will.
What type of alternative products are you seeing coming into the mix different from maintaining cars and light trucks? For example, batteries or battery chargers for powersports, ATVs, boats, etc.? Many distributors are looking to differentiate themselves from their competitors and the retailers. Based on their customers’ needs and their own ability they may be venturing into heavy-duty, PB&E, ATV, boating or powersport products. We are
June 2013 | Counterman
What issues keep you up at night? Succession planning for all independent warehouse distributors. If every entrepreneur needs an exit strategy, then where do they turn as they approach that time in their career when they want to transition out of the business?
What’s your gut feeling about the outlook for the remainder of 2013 and 2014? I am always the optimist, so I look for growth in the coming years. I believe that pent-up demand resulting from the recent recession will bode well for us in the next 18 months. CM