Leader Auto Resources LAR inc

DRIVING THE AUTOMOTIVE ENGINE

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Leader Auto Resources (LAR) takes pride in being the largest procurement enterprise for automotive dealerships in North America, whether ranked by sales, profits, number of dealers, geographical footprint or range of products and services.

The company provides an excellent service to over 3,200 dealership members, catering to distribution centers in Montréal, St John’s, Calgary, and Malta (with the US affiliate shareholder, DealerShop), regardless of their size, brand, or location.

“Our vision is to be the leading player in all our markets, following clear, focused strategies that provide high-quality products, value-added services and additional discount dollar growth,” introduces Robert Issenman, President and CEO of LAR.

As the automotive industry has grown and evolved, LAR has kept pace with a steady expansion of goods, services and facilities. The company has a vast portfolio of products and services on hand across

every profit center in its dealerships, spanning its service department, collision and aesthetics center, sales department and administration.

LAR procures thousands of products, including paint and allied products for body shops, tooling and equipment, cleaning products and chemicals for garage maintenance, and new nanotechnology products for windshield and body treatment.

CHANGING LANES

For Issenman, a career in the automotive industry was not always in the pipeline.

His unconventional path to LAR began in 1994, when he was a senior partner in a venerable national Canadian law firm and a member of its Executive Management Committee and Board of Directors. As a client of the firm, Issenman had previous connections to LAR, following involvement in various legal matters for the company.

“The Chairman of the Board of LAR at the time, the late Henry Mews, an

icon in the automotive industry, had a vision for the growth of LAR and thought that I could be instrumental in making it a reality by taking on the leadership of the company.

“It represented a major change of career direction, and as such, a difficult decision. After considerable thought and discussion, I took over the reins at LAR but remained as counsel to another leading Canadian law firm with offices around the globe. I have never looked back and, almost 30 years later, I can say it has been a very broadening and enriching experience,” Issenman details.

As a veteran of the automotive

We speak to President and CEO of Leader Auto Resources, Robert Issenman, about the firm’s vital role in fulfilling supply and demand in the North American automotive industry

Lucy Pilgrim | Project Manager: Callam Waller

industry, LAR’s Chairman of the Board, Allen F. MacPhee, emphasizes how over time, retailers have needed to gain more control of their purchases, which makes the role of LAR even more significant.

“There are many things that dealers cannot control, such as their relations with manufacturers, government regulations and economic conditions. It is very valuable to be part of a supply chain such as LAR, whose sole purpose is to acquire whatever a dealership needs at the most favorable prices, using expert purchasing skills developed over the last 40 years.”

GOING THE EXTRA MILE

The strength of the relationship with its dealers is at the heart of LAR’s success, alongside the cohesive connections it maintains with all the different internal departments. Consistent with LAR’s values, a dealer principal centric approach has been a key focus of the company since its inception. It’s singular focus on its dealership members guarantees that the company responds with what is best for those clients.

“We have regularly communicated how our value delivers not only top line savings from preferential pricing supported by additional discounts,

Allen F. MacPhee, Chairman of the Board

Driving Success through Innovation and Quality

Hunter Engineering Company is the world leader in alignment, wheel and tire service, inspection and ADAS calibration equipment. We find out more with Regional Manager, Andrew Valle.

We have the largest full-time engineering team in the wheel service industry, and we now own more than 300 patents. Feedback from our customers and the field helps drive future innovations.

Briefly introduce us to Hunter Engineering. e.g., a brief overview of your main products and services, locations, client base, and number of employees.

Hunter Engineering (Hunter) is a familyowned and operated business that has designed and built automotive wheel service equipment since 1946. Hunter’s awardwinning research and development team of mechanical, electrical and software engineers is responsible for hundreds of patented and exclusive features that make Hunter products the most productive undercar service equipment available. Hunter now fields the largest dedicated support force in the undercar service industry. Business consultants and service representatives have an extensive network available to provide account assistance, product information and technical support. Customer satisfaction is key to Hunter’s success.

Our products are proudly designed and made in the US at our facilities in St Louis, Durant and Raymond. Our corporate offices are located in St Louis, Aurora, Canada and Puchheim, Germany.

Our core client base is car dealers, independent repair facilities, body shops, heavy-duty and commercial operations as well as government facilities.

We partner with customers to provide high-performance products that deliver the best possible results. Accordingly, Hunter is recognized for its high-quality products that set new standards in the industry. Our customers benefit from the largest field team in the industry, with more than 400 business consultants and more than 450 service technicians providing continued after-sales support and training. This field support is unmatched in the market today. We have also made considerable investments in training for our customers, with centers throughout North America, online and in person for technicians and advisors.

Our customers tell us that their decision to invest with Hunter is primarily based on exceptional service, top-quality products and the genuine interest that Hunter has in seeing their business succeed.

Could you tell us about some of the major challenges faced within the industry and the business itself and then detail how these have been overcome?

One major challenge we face is technician shortages and skills in servicing more complicated vehicles.

has always been a priority. The evolution of electric vehicles (EVs) in the market has placed further demands on the importance of fixed operations. EV sales in the US tripled in 2022 compared to 2020 (COX Automotive). There is a belief that EVs require less service than internal combustion engines, so capturing service opportunities will be more important than ever for dealers, as EVs put pressure on hours per repair order and the number of customer visits per year. The fact is, EVs are not maintenance-free. EVs that have only been on the road since 2020 are likely to need new tires today, unlike their gas counterparts. Tires are one of the fastest wearable items on these cars, so checking them not only allows for selling tires and rotations but once we remove wheels, we see everything else happening surrounding the wheel. Also, tires are the only safety system of a car that touches the road. EVs are very heavy, so suspension parts must be closely followed and serviced, including new wheel alignments, one of the most profitable services in the shop.

What are your major future ambitions going forward and how will these goals be achieved?

What are some of the ongoing or recent projects that you are most interested in showcasing?

• Quick Check® Drive – the autonomous service drive vehicle inspection systems.

• Third-party integrations with dealer management systems (DMS) allows Hunter technology to seamlessly send data to DMS, significantly improving processes for service advisors and thus increasing revenues and productivity.

What, for you, differentiates your business from the competition?

For more than 75 years, Hunter has been a family-owned business driven by innovation.

Elsewhere, one of the biggest challenges today for dealers is attracting and retaining automotive technicians as there is a large-scale industry shortage of this skilled workforce. Hunter products help dealers attract and retain technicians by allowing the dealer to demonstrate that they are not only committed to the consumer but also to the technician by giving them tools that help them complete services faster, safer, more profitably and with higher-quality results. Increasingly equipped with complex onboard Advanced Driver Assistance Systems (ADAS), such as adaptive cruise control, lane departure warning, collision avoidance and self-driving capabilities. These systems often need service after wheel alignments, collisions or windshield repairs, for example. It can be difficult to keep up with repair processes for these complex systems as they evolve. Hunter ADAS equipment helps guide technicians through the repair process specific to the unique VIN of each car, ensuring a successful outcome for the tech, customer and dealer. Service absorption within the dealership

At Hunter, we want to be customers’ first thought and first call when they’re considering investments in their stores. However, we respect that this must come from the trust we need to build with customers by working in partnership with them.

Our growth at Hunter is directly linked to our ability to innovate, offer the best service in the undercar industry, and exceed our customers’ expectations. Therefore, we will remain focused on growing our field team both in service and regarding business consultants, provide more training opportunities for customers and for the technicians of today and tomorrow, and continue to raise the bar on product innovation that customers have come to expect from Hunter.

What are you most proud of in relation to the company overall?

In one word, passion. The people at Hunter are genuinely passionate about what they do, and you see it and feel it when you visit the offices and manufacturing plants and when working with the field team visiting customers. People are smiling and having fun, they’re inquisitive and take a greater personal interest in others. I believe our customers also feel this passion that we have at Hunter, and this is why they trust the brand we have built.

NORTH AMERICA OUTLOOK: COULD YOU ELABORATE ON THE DEALERS’ COLLISION TECHNOLOGY INSTITUTE?

Robert Issenman, President and CEO: “The Dealers’ Collision Technology Institute serves as a tangible reminder of the kind of investment in innovation that LAR has proactively developed, as our mission at the institute is to educate and inform in collaboration with our manufacturing supply partners. Each year, we launch informative workshops on the latest developments in Advanced Driver Assistance Systems (ADAS).

“Consistent with our vision to lead the way, LAR offers both in-person and online training to address the various facets of this rapidly evolving technology, including scanning, calibration, and specialized equipment utilization. The focus is on apprenticeships at all levels in mechanics, body work, and the rapidly burgeoning requirement to be abreast of knowledge related to EVs.”

but also how LAR drives operational efficiencies delivered from centralized purchasing and invoicing. It is this longstanding core advantage that gives LAR the leg up and serves to deliver the greatest benefits to our original equipment manufacturer (OEM) dealers,” states Issenman.

Projects aside, LAR has a respectable and knowledgeable workforce that underpins the dealership’s trust and acts as the conduit to drive new product penetration. Furthermore, LAR believes that sales growth derives from effective program deployment at the field level.

“While LAR is of course a preeminent procurement enterprise, it is also a sales engine, and it is the combination of these two spectrums which makes LAR the perfect partner to support all our dealerships,” he highlights.

A ONE-STOP SHOP

LAR’s supply chain operations are at the core of the organization. The

structure of the company means that dealership members understand the benefit of a “one-stop shop” that provides access to LAR’s unmatched portfolio of strategic supply partners. Thus, members benefit from a vast range of products and services including, tools and equipment, consumable products, paint and body and direct dealership services, which are all available with additional discounts behind the invoice.

“LAR offers much more than the widest catalog of products and services. It is uniquely qualified to support dealers who wish to build new facilities, expand upon existing service areas or execute renovations. With the most sophisticated strategic supply partners and in-house expertise to offer initial consultative services, LAR delivers unparalleled value-added offerings.”

On a wider plain, LAR’s global supply chain is integral to the company. “Our strategic shareholding in TECAR (tecar-international.com),

“LAR HAS MADE SOME OF THE MOST DRAMATIC ADVANCES IN OUR HISTORY TO EXPLOIT GROWTH OPPORTUNITIES ACROSS NORTH AMERICA, AND THE ORGANIZATION IS NOW PRIMED FOR EVER GREATER SUCCESSES IN 2023 AND BEYOND”

– ROBERT ISSENMAN, PRESIDENT AND CEO, LEADER AUTO RESOURCES

TECAR shareholders

a European-based partnership, reflecting the purchasing power of over 15,000 car dealerships in 13 countries, enables us to identify costeffective and efficient procurement opportunities,” Issenman elaborates.

LAR’s highly comprehensive procurement department is proactive in navigating recent worldwide supply chain issues by understanding all aspects of supply chain management and having the ability to predict obstacles and find solutions.

Significantly, a strong bond with each individual supplier makes this possible, allowing the company to keep its finger on the pulse for every product category.

A deep understanding of every single supplier is essential, as each one is an expert in their particular

product. “Our philosophy is to typically have secondary and ‘back up’ supply chain options, so that we are in a position to virtually always get any needed merchandise to our members on time,” affirms Allan Ezri, National Director of Purchasing and Inventory.

Due to the complexity of the automotive ecosystem, the industry not only involves retail car dealers but OEMs, which have national programs to supply its dealers with specialized tooling. Many of these programs are facilitated and invoiced through LAR. As such, the company’s relationship with OEMs is critical to the overall success of the automotive sector.

INNOVATIVE IMPLEMENTATION

LAR’s most recent projects showcase

the company’s prior progression. For example, it facilitates the equipment program for approximately nine OEMs in Canada, as well as the development and maintenance of several OEMspecific websites, all of which are noteworthy projects.

Moreover, with the introduction of EVs, franchises have new requirements including charging stations, specialty tools, new batteries (and their disposal), protective equipment from electric shocks and much more. Again, the supplier relationships are integral in this process, as they enable the company to request and receive reports on its technical progress, as well as a planned market introduction of upcoming products so they can immediately, effectively and

“OUR PRIMARY RESPONSIBILITY IS TO OUR DEALERSHIP MEMBERS. THEREFORE, OUR ACTIONS ARE GUIDED BY THE BELIEF THAT INTEGRITY, COMMITMENT AND QUALITY ARE ESSENTIAL VALUES TO ANSWER OUR CLIENTS’ NEEDS”

– ALLAN EZRI, NATIONAL DIRECTOR OF PURCHASING AND INVENTORY, LEADER AUTO RESOURCES

Allan Ezri, National Director of Purchasing and Inventory

efficiently support the OEM franchises with the new supplies of inventory they require.

The relationship between LAR and various OEMs represents a critical interest in the ongoing transition to the electrification of vehicles and a deeper understanding of the market drivers and how it affects the automotive ecosystem.

“LAR is always ready and prepared for future innovation in lockstep with our supply chain. Together we serve

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the automotive industry, and our mission is to always be at the forefront of change to ensure the relevant supply of products and services,” comments Andrew Wells, General Manager of Sales for Ontario, Atlantic and Western Canada.

In line with its innovative history, the next major initiative needed to buttress LAR’s technological infrastructure involves the implementation of an Enterprise Resource Management (ERP) system. This system is vital in supporting the massive increase in the customer base, arising from the OEM programs and the resulting need for segmentation and individual reporting.

Newly accessible shared information facilitated by the ERP system will allow for collaborative and actionable decision making and management reporting. The new platform will also facilitate detailed business analysis that will

provide important opportunities for improvement in every department.

“For over 40 years, we have been nurturing and building trusted partnerships with our dealers. These special relationships, which have in many instances spanned decades, have generated millions of dollars of savings for our dealer community.

“Our reason for being is to deliver added value to our dealerships, who are true partners in every sense of the word. As the clear leader in a highly evolving market, our committed dealerships are driving our clear success. As such, LAR is confident in its ability to grow its business and increase its market share,” concludes Issenman.

Andrew Wells, General Manager of Sales for Ontario, Atlantic and Western Canada