Chicago-The 13th Global Automotive Aftermarket Symposium (GAAS) on May 20-21 offered its attendees an extensive overview of the automotive parts and service industry. A total of 435 automotive professionals (up from 387 in 2007) attended the symposium, which provided sessions ranging from global economics to telematics.
One key session was presented by Ron Pyle, president of the Automotive Service Association (ASA), and Steve Handschuh, president and COO of the Automotive Aftermarket Suppliers Association (AASA). Titled "Let's Talk: Promoting Dialogue Among Suppliers and Technicians," the presentation reviewed products being supplied to ASA members and what perceptions technicians have about parts and suppliers.
Pyle said the ASA Mechanical Division operations committee participated in a study last year to better understand "what was in the box" relating to parts being installed on vehicles. He said the concerns of technicians and shop owners involved having trust in the products they were purchasing from suppliers.
"(Our members) wanted to understand how distributors make decisions about the products they sell," Pyle said. "Not many of our members buy direct; most buy from traditional distributors. They wanted to understand how they could identify quality parts they can trust," he said.
Handschuh said that AASA had formed a technicians advisory council about the same time as the study by ASA members. "Primarily, the parts manufacturers wanted to get input directly from the people who throw the box away," he said.
"There was a time when there were literally thousands of factory reps that were on the street, working with outside salespeople, helping them to sell products," he said. "They were calling on end users and they had a direct dialogue with the service dealer."
That is not the case today, Handschuh said, adding that the manufacturers and suppliers are not getting the direct feedback from the repair community that they once did.
The Mechanical Operations Committee of ASA defined the concerns they had, Pyle said. "There was a lot of discussion about real problems they were seeing in the shops every day. And they created a list of questions that they felt like they should present to suppliers," he said, adding that the installers identified a number of suppliers.
Pyle said ASA interviewed two selected suppliers near the group's Bedford, Texas, headquarters, an AutoZone distribution center and ABC Auto Parts, but also surveyed several others.
A subcommittee of seven visited the two operations and presented concerns, Pyle said. "We did learn that there were some gaps in our understanding of one another's perceptions. We knew that going in, but one of the good things that occurred, of course, is that perceptions were changed on both sides."
One question asked was, "What criteria do you as a parts supplier use when selecting a parts source?" Pyle said that answer varied depending on the size of the supplier.
"Most parts manufacturers don't make their entire line," Handschuh said, adding that many parts manufacturers have shopped globally for some parts for a long time; most end users relied on suppliers and their branded product and assumed that wherever it was obtained, it was a good product.
Shops are now seeing the inconsistency of the product in the box, Handschuh said, adding that 10 years ago, shop owners and technicians may not have been thinking about products produced outside of North America.
Outsourcing products, Pyle said, is a concern for ASA members and other installers. When it comes to global sourcing, he said there are a lot of questions for suppliers and manufacturers, most involving quality issues and how products are made and to what standards, as well as warranty issues.
Handschuh said it's a real concern for manufacturers and suppliers. "We know the demand for fit, form, and function is more pronounced today than it's ever been. And they want to know if, in fact, the product that's being sourced meets that criteria," he said.
Regarding OE specs, Handschuh said that frequently there are no OE specifications because manufacturers are reverse-engineering many products, "and most of us know that the OEs are sourcing very often a different quality of part for use in OE service than they do on the assembly line."
Both agreed that the issue of OE specs can be somewhat unclear but that installers' perceptions often are that OE parts are of higher quality and more reliable despite the fact that many of those parts are not obtained differently than any aftermarket part.
The question of third-party sources that inspect parts was one of key concerns asked by the installer group. Pyle said few are certifying parts, though Handschuh said that having a supplier and a supply chain that can be trusted is the answer, regardless of where the part is manufactured.
"I think all of us would agree that any country in the world is capable of producing premium-quality products," Handschuh said. "It depends on who stands behind them and who is making those decisions."
Handschuh said more and more aftermarket companies are direct sourcing. "But the installer is saying you need to provide more reassurance (about the parts). They want to know more about what goes in the box," he said.
One interesting question asked by installers to suppliers was, "What can shop owners do to help you reduce your costs?" Pyle said the primary suggestion was that the entities need more dialogue. "We need more understanding of each other's business processes," Pyle said. "That way we can avoid some of the problems."
Pyle said one important point is that service providers want more information about the parts they purchase. "They are concerned about the quality of parts outsourced from other countries. The good news is that in our surveys, what we learned was that the preference for aftermarket is still very, very strong," he said. "The value proposition is generally better for most independent shops. So the call to action is to establish some communication between all stakeholders."
"One of the most important things that we all need to leave here understanding is that if we're relying on service providers to communicate to the consumer the value of buying parts and service in the aftermarket, they've got to be able to articulate the value proposition that we produce," Pyle said. "So our job is to make all of the customers equally adept at sharing that value proposition with the consumer."






Send This Link To Friend