The Southern Dealer Perspective

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The Northeastern Dealer Perspective

How long have you been in the industry, and what is the biggest change during that time?

Ian Grohs – Parts Manager Stateline Chrysler Dodge Jeep RAM

I have been in the industry for just under 13 years. The two biggest changes I have seen are the increasing complexity of new vehicles and the consolidation of the collision industry. Though my time in the industry is shorter than many others, the change in vehicle complexity that I have seen has been enormous. For example, CAN bus electrical systems, the proliferation of vehicle sensors, changes in material and construction, and the ubiquity of turbocharging on modern vehicles are just a few of the changes the industry has had to adapt to. As far as consolidation goes, MSOs are increasingly dominating the market. I have seen many of the mom-and-pop shops we have worked with for years sell out and retire. The mom-and-pop shops of the Carolinas have been our primary customer base for decades, so this shift is most definitely forcing somewhat of a strategic change for us.

Paul Corbet - Parts Director Infiniti of Memphis

I have been in the industry for over 40 years. For 33 of those years, I have been the Parts Manager at Infiniti of Memphis. The biggest change that I see is the change in technology. When I started, there were no cell phones and no internet. Now, everything is available online.

Ken Bartlett - Parts Manager Harper Volkswagen

I've been in the industry for over 40 years. The biggest change by far is going from microfiche parts look up to computer-based catalogue, and going from a manual stock ordering to all online systems.

Why do you believe collision repair customers consider you a leading wholesale parts dealer?

Grohs: It all comes down to service. The parts bought from us are the same as those purchased elsewhere. We differentiate ourselves by providing excellent service to the shops that partner with us. This means answering the phone and responding to orders quickly, getting the right part the first time, being incredibly consistent with our deliveries, issuing credits within 24 hours, going the extra mile to source back-ordered parts, and putting in place processes to ensure that we have the right mix of inventory. This means that we are easy to work with and that shops can fix cars faster.

Corbet: I believe customers use us because of our staffs’ combined experience in the parts department. We have an inventory of $800K plus. We will go the extra mile to find the hard-to-get parts and we will follow up with an ETA.

Bartlett: We have an awesome parts team. We try to answer the phone as quickly as possible and treat our customers how we would want to be treated.

To achieve your level of success in the wholesale parts business, what aspects of your day-today operations need to stay consistent and what needs to be re-evaluated on a regular basis?

Grohs: Consistency is key in all aspects of our business. We have the staff and processes in place to provide a very consistent experience from start to finish. The only re-evaluation that must be done concerns the resources needed to consistently keep the experience we offer. This could mean adjusting staffing levels, tweaking processes, adding tools or vehicles, etc., all to give our customers a reliable, consistent experience with us.

Corbet: The aspects that need to stay consistent daily are scanning parts correctly and putting up stock. Check for any discrepancies with the inventory, parts inventory control is vital to a good parts operation. The factory programs are always changing. We evaluate them regularly to see how they will aid us in helping the wholesale customer better.

Bartlett: We are continually tracking inventory, little by little. That needs to stay consistent to stay on track. We are always adapting to our customers' needs and wants.

What changes do you see in the next five years for the industry?

Grohs: I have a few predictions for the next five years:

• Manufacturer programs will make it harder for dealers not already in the wholesale business to enter. If I am correct, this will mean that the dealers who are currently big wholesale players will primarily be concerned with competing with each other rather than with new entrants into our markets.

• The push towards electrification will continue, but many of the current startups we're seeing will disappear from the marketplace. I think that it is likely that smaller EV startups will either be absorbed by larger manufacturers or go out of business. I think that the majority of new EV business will go to established brands as they strengthen their EV offerings.

• The proliferation of driver assistance and safety technology on new vehicles will result in fewer vehicle accidents, shrinking the collision industry.

• The absorption of both independent repair facilities and independent dealerships into larger groups will continue.

Corbet: The parts industry is going to change with EVs coming into the market. I believe it will shift from selling mechanical parts to selling more electrical controls and collision parts.

Bartlett: In the next five years, I think we will see a lot more electric vehicles on the road, which will be an all-new challenge in the future. I believe online ordering will continue to track upward as well.