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AFRICA AUTOZONE

Epitomising excellence through strategic supremacy

A U T O Z O N E

The Automotive

AtoZ The largest wholly-owned auto parts retailer in Southern Africa, AutoZone has not settled, set to fundamentally reinvent its operational and productive portfolio to the benefit of all during 2019 Writer: Jonathan Dyble | Project Manager: Josh Hyland

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strategic and catalytic segment of the South African economy, the automotive sector has become a mainstay of national industry, accounting for just shy of seven percent of GDP. Standing aside from a continent that is home to just 44 vehicles per 1,000 inhabitants, four times less than the global average of 180 according to Deloitte, this market has continued to prevail in South Africa, remaining the country’s sole manufacturing sector to have expanded while others have shrunk. “Many have prospered under these circumstances and we are now seeing a lot of market consolidation, with rapid growth taking place in both the retail and supplier spaces,” explains Lesego Moagi, Marketing Executive at AutoZone. “A number of mergers in the industry are underway, and change is something that we see happening at a pace never seen before.” Setting the scene, Moagi goes on to reveal that the situation is no different for AutoZone itself, a company that remains the largest wholly-owned distributor of auto parts, spares and car accessories across Southern Africa. “Let me paint a picture of what our company is looking at right now,” he continues. “We’re arguably the most typical example of an automotive business having been the subject of rapid growth, and now we’re reinforcing our position. “What this has resulted in is the implementation of extensive structural and strategic changes within AutoZone. However, this combined with other events out of our control such as economic shifts, supplier changes, product and range proliferation and the need to adjust our internal focus, it’s a transitional period to say the least.” The hectic nature of these adjustments aside, the benefits that this strategic overhaul is set to bring to the business are not to

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right part right price

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be underestimated, providing the company with a platform from which it can accelerate its own consolidation throughout the coming months. “In essence, what we’re trying to do is leverage our core, existing infrastructure and scale that in order to become South Africa’s leading vehicle care solutions partner,” adds Moagi.

The full service

This immediate infrastructure is already substantial, AutoZone priding itself on an esteemed record of providing high-quality products and services that allowed it to establish a broad, loyal client base of engineers, auto-spares retailers, mechanics, workshops, fitment centres and retail car owners located across Sub-Saharan Africa. Positioned as a one-stop shop with extensive coverage of South Africa, the firm supplies vehicle parts, spares and accessories for almost any vehicle

make or model, from brake pads and gaskets to engine parts, oil pumps and other heavy-duty articles. “We primarily cover the passenger and light commercial vehicle markets,” explains Moagi. “Working with close to 700 world-class suppliers, we’re able to source and sell approximately 75,000 parts across our 250 branches and additional franchisee member-owned outlets. “Our competitors are predominantly independently owned spare shops or specialist stores, whereas AutoZone uses scale and a centralised operating

LEADERSHIP FOCUS LESEGO MOAGI, MARKETING EXECUTIVE AT AUTOZONE Moagi started out at Eskom in 2009 where he focused on internal communications for the utility’s 2010 FIFA World Cup mandate. From there he then became a project consultant at Reputation Institute SA, lecturing at the University of Witwatersrand in 2011. Having also worked as a marketing and communications professional for Center For Supplier Development, Massmart Holdings, Makro SA and Builders, he now stands as the Marketing Executive for AutoZone South Africa.

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ith an ageing Southern African car parc, the automotive battery replacement market is a vast one which continues to grow. There to service this market are two of South Africa’s pre-eminent brands: AutoZone, and SABAT®, a battery brand with strong South African roots and a legacy of quality and performance. SABAT® batteries are manufactured by AutoX to meet the expanding needs of its customers and the changing demands of the battery industry. It has a strong market presence across the whole of Southern Africa as well as selected Sub-Saharan African countries. It’s brands, of which SABAT® is one, are recognised as leading brands in the marketplace. AutoX supplies a comprehensive range of world-class lead-acid automotive batteries to the OEM and automotive replacement markets. It is also responsible for the manufacture and supply of AutoZone’s own in-house brands. Ensuring the continued supply of premium quality products and service excellence, AutoX combines technology advancement and a quest for perfection. Quality is always at the forefront of AutoX’s offering. In 1987, AutoX’s Port Elizabeth production facility became the first in South Africa to be awarded the SABS Quality Management System

for battery manufacturing, with SABAT® awarded the SABS Mark of Approval. SABAT® has found its niche as the lifestyle automotive accessory of choice and is in demand by the younger, do-it-yourself generation, particularly those interested in outdoor activities. One of SABAT®’s draw cards is the development of its “deliver and fit” model. Consumers can phone a Call Centre at 0860 SABAT and obtain immediate response to any questions. This opportunity to interact with the brand perfectly matches the needs of today’s “instant gratification” society. AutoZone’s alignment with SABAT® is a natural fit. AutoZone has got auto parts, spares and car accessories for almost any and every make or model and SABAT® offers a battery with strong local roots and a place in people’s hearts.

www.sabat.co.za

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model to reap efficiencies and leverage on economies of scale whereby, ultimately, our customers can expect consistent levels of quality branded product availability and associated services.” However, having somewhat maximised potential by leveraging these existing approaches, the company is looking to raise the stakes and enter a new, more prosperous era by differentiating and diversifying both its service and product offerings.

An operational overhaul

This has culminated in the identification and development of a three-pronged master plan that will allow AutoZone to enhance its market capitalisation and become more customer-centric. Moagi reveals: “Firstly, we want to grow the core business, an ambition that our team hopes to achieve through focusing on category optimisation, supplying consumers with both the right products and the

AUTOZONE BY THE NUMBERS A company comprising more than 250 stores across South Africa, alongside a franchisee presence in Botswana, Swaziland and Namibia, AutoZone has established itself as one of the largest automotive parts retailers in Sub-Saharan Africa. The firm delivers stock to each of its SA stores seven times each week, with 46 of these receiving two deliveries per day. These deliveries combined, the AutoZone fleet travels roughly 228,289 kilometres every week, moving approximately 141,680 kilograms of products during these journeys. Moreover, 51,000 lines are picked during this time, with 9,200 lines being receipted from suppliers such as Bosch, Castrol, Shell, Monroe, GUD and many more each day.

BOSCH

he Bosch Automotive Aftermarket division, has approximately 17,000 associates around the world with 21 production facilities and 21 development centres worldwide, which manages provision through to sale of automotive spare parts, workshop equipment, workshop concepts and Bosch products for retrofitting. Services include technical training, technical information service for automotive products and systems. Our 81 distribution centres worldwide are supplied by 150 plants and 700 suppliers with 650,000 part numbers delivering to 130,000 locations around the world. In South Africa, automotive parts and diagnostics solutions are distributed through an appointed wholesale network. The Automotive Aftermarket business unit is responsible for the Bosch Service workshop network, with over 13,000 centres in 150 countries, Bosch Service has the world’s largest network in the independent workshop market. South Africa boasts 146 Bosch Service Centres nationwide offering a range of services including automotive electrics, electronics, general mechanical vehicle repairs, inspections, oil service and airconditioning service. Our Bosch diagnostics solutions provides around-the-engine and aroundthe-wheel workshop testing equipment supported by the Bosch ESI-tronic diagnostic software. In support of workshop and technicians, Bosch offers various specialised technical training courses the latest information on Xxxxxxxxon xxxxxxxx xxxxxxxxxxx xxxxxxxxx vehicle technology in our facilities located in Midrand, Durban and Cape Town.

Robert Bosch South Africa Pty Ltd Private Bag X118, Halfway House 1685

www.bosch.africa

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Bosch ECO HID range of automotive bulbs BOSCH ECO HID: RELIABLE AND WITH ATTRACTIVE PRICE/PERFORMANCE RATIO For price-oriented customers expecting both a value-based repair and reliable Bosch quality, the Bosch ECO range of automotive bulbs is the ideal solution. Bosch newly introduces the ECO HID line, which additionally covers the three most common gas discharge bulbs. • • • • • •

Good price/performance ratio: outstanding lighting performance with fair pricing Better visibility: 2.5x more light than conventional halogen bulbs – illuminates those parts of the road that cannot be lit by halogen bulbs Light as bright as daylight: high luminous power and a color temperature from 4,300K – 4,600K Longer service life: often the entire service life of a vehicle as gas-discharge lamps do not require a filament which makes them more durable and reliable Reduced energy consumption: 35W instead of 55W - benefits both the environment and your pocket For both passenger and commercial vehicles

Robert Bosch South Africa, 96 15th Avenue Randjespark, Midrand, South Africa

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right mixture of products.” Embodying the group’s ‘goodbetter-best’ principle, AutoZone is effectively providing its customers with more options when looking at what they would like to buy. “We’re offering not only greater choice, but also a better range of high-quality products,” the Marketing Executive adds. The second point of note is the firm’s recent sales channel strategy, splitting its business into three core, defined divisions comprised of wholesale and retail arms and a professional services business that

will service key accounts such as workshops, fitment centres and provide fleet management to private businesses. Now targeting a clear and distinct audience across each of these channels with limited overlap, AutoZone has already been reaping the rewards, no longer using the same operating model to cater to each of these segments. “We’ve been able to replace challenges and discrepancies with more efficient and effective operations, evident across our wholesale business, for example,”

PARTQUIP

or the past 36 years, Partquip’s mission has been to supply a select range of quality guaranteed auto parts, through our network of distributors, to the automotive aftermarket. Our value proposition to our customers, typically motor spares stores, is a strong brand based on quality, sold at a reasonable price and supplied at superior levels of service. At our core we believe that we are an extended family and we value loyalty, honesty, integrity and respect within our working environment. Partquip was acquired by Hudaco Industries in 2014 and is accredited with ISO 9001 and B-BBEE Level 3 certification. Our staff complement of 330 employees ensures that our branches located in Johannesburg, Durban and Cape Town operate efficiently in order to deliver exceptional service to our valued customers throughout Southern Africa. With more than 14,000 part numbers supporting our product offering with extensive and growing ranges, we believe that we are well positioned to meet the needs of an evolving automotive aftermarket replacement parts industry.

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www.partquip.co.za

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explains Moagi. “In the past there would be precautions when it came to serving independent spare shops with these companies being a major competitor on the retail side. “We would have to weigh up the potential impact of our wholesale operations against our retail operations, something that regularly stood as a source of conflict. “Now, however, these two divisions are standalone businesses and individually act in the best interests of their individual target markets, an approach that we believe will allow us to maximise opportunity across all segments.”

Similarly, Autozone’s dedicated professional services team has expanded productivities for both the customers and business itself. Moagi continues: “Before we were servicing all customers using our retail stores as a base, but now we’re dedicating a key account manager to each of our key clients that act as a national port of call for anything on a national scale, rather than our clientele attempting to navigate different stores around the country. “It reduces complexity on both ends, for us and our customers, ultimately making business easier.”

A SOCIAL STALWART AutoZone is heavily involved in CSR, the company most recently holding a charity golf day with proceeds going to its two main beneficiaries:

St Vincent’s School for the Deaf St Vincent’s has helped educate deaf children in South Africa for the past 75 years, currently serving 270 pupils of all ages. Learners come from all different backgrounds and demographics, with the vast majority of students coming from all across South Africa, alongside other African countries such as the DRC, Gabon, Kenya and Nigeria.

Norah’s Educare Centre Norah’s Educare Centre in Benoni is a home to vulnerable children aged between three months and 18 years and provides academic, social and emotional support. It caters for 250 children and has been AutoZone’s nominated beneficiary for Mandela Day, Christmas functions and ad hoc support.

ALLIJAM

llijam is South African company based in Johannesburg, manufacturing and distributing motor vehicle, domestic and industrial cleaners. Our flagship product is PREPSOL®, especially formulated to clean away mud, grease, oil and grime. PREPSOL is a water based cleaner that is used by the off-road motor racing and bicycling fraternity as well as for domestic and industrial cleaning and degreasing. It cleans easily and in an environmentally friendly way and can be simply washed off with water. PREPSOL® leaves no oily residue, so does not attract dust and dirt.

www.allijam.co.za

ALFA INTERNATIONAL

ounded in 1964, Alfa International is the leading independent local supplier of brake drums and discs for a wide variety types of vehicles. The company supplies South Africa’s road transport industry with a full range of high quality brake drums and discs for trucks, buses and trailers, light commercial and passenger vehicles, plus a selection of hubs for the most popular automotive sector vehicles. Manufactured from high-quality castings on state-of-the-art computer-controlled equipment, its brake drums and discs are designed for high performance, maximum safety and ease of fitment.

T +27 11 365 2900

www.alfabrakes.co.za

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CLEANING SINCE 1964 Allijam is a South African company that owns the Prepsol and Jet brands. Allijam is involved in several typres of motor sport and cycling in South Africa, including, The 94,7 Cycle Challenge, The 1000 Bike Show and the South African Festival of Motoring. Vintage Motorcycle Rally’s, South African National Motocross Series, Automechnika and many others.

Prepsol and Jet Cleaners, @prepsolcleaner

www.allijam.co.za

HEAVY DUTY FRICTION PRODUCTS

OUR PRODUCTS INCLUDE: • Brake Lining and Disc Pads • Clutch Assemblies: Tractor • Clutch Facings : Buttons and Rivets • Brake Drums and Discs • Flywheels For Trucks • Clutch Assemblies: Truck and Bus OFS: Gauteng: Eastern Cape: Western Cape: Kwa-Zulu Natal:

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DISC PADS

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Alfred Teves Brake Systems (Pty) Ltd Ate and Teves are registered trademarks of Continental Teves AG & CO, oHG in Germany and other countries.

Manufacturers and suppliers of automotive brake system components including brake pads, rotors, shoes, drums and hydraulic cylinders

A proud supplier to

Autozone

Tel +27 11 898 1800 | www.ate.co.za

Prepared for progress

Alongside the successful expansion of its product range and restructuring processes, the company’s third and final strategic focus is centred on expanding its in-house portfolio. Having had own-brand products for many years, Moagi and his team are keen to grow this segment of the business, hoping to ramp up the production of reputable and reliable products for its clientele. “Very simply, we’re improving the way that we work, finding better efficiencies across the board of our business, from how we get products in and move these around through our distribution networks channels to how these are marketed and how we individually serve our customers as the end-users,” the Marketing Executive reveals. Leveraging this three-pronged plan centred around growing the core, consolidating the firm’s trio

of channels and bolstering its ownbrand portfolio, AutoZone is expected to redefine itself as an innovative, proactive player within the market during the next two to three financial years. “If we get these things right,” Moagi reveals, “then no doubt we will successfully be readied for extensive organic growth.” Beyond this, however, the business is also making plans for the longer term. According to McKinsey Global Institute, for example, the ecommerce market in Africa’s leading economies is set to be worth $75 billion by 2025, a rising trend that AutoZone is eyeing. “We’re already investigating this sphere,” Moagi reveals. “It’s something that’s going to accelerate later in the year, and we’re hoping to have a fully-fledged ecommerce platform in play before 2020 hits.” The coming months set to be defined by innovation and adaptation,

Moagi and the AutoZone team remain motivated with the monumental yet invigorating task at hand, preparing to embrace the major self-induced changes coming the company’s way. Moagi concludes: “All these things, combined with a refined corporate identity, store design and more that will come with the company’s upcoming rebranding sequence, we’re expecting the coming 12 months to be one of the most transformative yet positive experiences in the business’s entire history. “It’s certainly exciting times ahead.”

AutoZone Head Office: +27 11 620 2700 cic@autozone.co.za www.autozone.co.za

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111 Mimetes Road, Denver, Johannesburg, 2094 Head Office: 011â€Ż620 2700 Customer Care line: 086 11 22 111 cic@autozone.co.za www.autozone.co.za