edition 2 - September 2016
1Parts moves forward with 4 new vendor agreements p. 8-15
1Parts Associates
1Parts Vendors
CONTENT 3 5 6 7
8 10 12 14
ADI: Driving Automotive Distribution Pronto: Business tools to ensure your success The Group: the Power of Collaboration Federated Auto Parts: Quality automotive parts and accessories
DENSO: Contibuting to a better world EXIDE: Powering the world forward REMY: The company that invented its own OE quality product VALEO: We care for you !
Dear business friends, Welcome at 1Parts, where AD International, National Pronto Association and Federated Autoparts meet and face together the challenges of a global aftermarket. Right from the start, our aim was to focus on each others strengths and share these on a “best practices” basis, as well as being supportive to global parts manufacturers that support us. Starting with the latter, we are very pleased to present you in this new edition of InSight four new parts manufacturers that support our approach of globalisation. When we are looking for constant improvement, these “best practices” resulted in a European delegation visit of 17 staff members of various ADI-Partners last year in the USA, followed this year by a round trip by 10 senior American decision makers who will visit Finland, Spain, France and Germany. We will show them some of the best we have in Europe and will exchange processes, operations and concepts. They will end their journey in FRANKFURT at the Automechanika, where they will for sure be surprised by the innovative power of the 1Parts suppliers. Enjoy this exciting journey with us …
Thomas Vollmar 1Parts President / ADI President
Board of Directors Thomas Vollmar
Yvan Domingue
Bill Maggs
Olivier Roux
Omer Wesemael
Steve Yanofsky
President ADI President 1Parts
Director at Large Pronto VP Monaco Group
Co-CEO President & CEO of Pronto
Director AD France Chairman of the ADF Supervisory Board
Co-CEO Managing Director ADI
VP & COO Parts Authority
Operational management Bill Maggs
Omer Wesemael
Mike Mohler
Nico Muyldermans
Co-CEO President & CEO of Pronto
Co-CEO Managing Director ADI
VP Partner & Vendor relations Executive Vice President The Group
VP Partner & Vendor relations ADI Secretary General
ADI, founded in 1970, is a leading automotive aftermarket player with headquarters in Kortenberg, Belgium (EU). Its 500 AD distributors deliver parts, products, tools and equipment to professional installers in 39 countries in Europe, northern Africa and Central Asia.
Footprint 24 partners 39 nations 500 AD Distributors 2600 AD outlets Turnover: 6,1 billion â‚Ź
ADI csll Leuvensesteenweg 272 B - 3070 Kortenberg BELGIUM T. +32 2 759 29 95 info@adi.be www.ad-europe.com
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Japan’s leading manufacturer of hydraulic parts
Pronto is a North American organization headquartered in Grapevine, Texas, consisting of 92 shareholder owners. Pronto was formed in 1979 and is a leading program distribution group with over 2.7 billion USD in sales (2,4 billion Euro). With a focus on marketing, technology, and buying, Pronto members distribute name brand, OE, and Pronto exclusive brand products. The Pronto network is present in the US, Mexico, Canada and Puerto Rico.
Footprint 92 members 340 WD locations 2000 Pronto Service Center Members Service 8900 jobbers Turnover: $ 2.7 billion (â‚Ź 2.4 billion) - Consumer Cost/Retail
NATIONAL PRONTO ASSOCIATION 2601 Heritage Avenue Grapevine, Texas 76051 UNITED STATES T. +1 800-477-6686 billm@pronto-net.com www.pronto-net.com 5
The Power of
Collaboration With thousands of locations across North America, The Group is stronger together, sharing resources in areas that benefit all in the supply chain. The Group dedicated to continually finding opportunities to improve support and services for the benefit of our members, suppliers and professional service technician customers. We are focused on creating value and continuous improvement that will help benefit all in the supply chain now and into the future.
The Power to Compete National Pronto Association and Federated Auto Parts combined efforts and resources to form the Automotive Parts Services Group, also known as The Group. With a focus on being best in class in overall value and support in the auto care industry. The Group has more than 5.000 outlets in North America, allowing it to best serve its valued service provider customers and suppliers through the power of collaboration. The Group shares resources in areas that offer efficiencies and improvement opportunities for all in the supply chain.
The Power to Serve While Federated and Pronto members continue to focus on building their local businesses, The Group has enhanced its national footprint to serve national accounts and expanded its global presence through an affiliation with 1Parts. This structure provides a platform for The Group to excel in providing all customers with highquality service and brand name, quality parts from leading manufacturers. • Multiple account approvals and the list is growing • Over $1.9 billion in sales from approved accounts • Account match-up-over 23.000 locations
Keys to the Future
Integrated Technology The Group is working on innovative technology solutions to enhance efficiency and accuracy as well as telematics systems that allow for seamless communication from consumers to repair outlets to parts providers. Integrated technology is the key to the future and The Group is leading the way, delivering so much more than parts to its customers.
• Superior technology * Exclusive E-Cat system * Web-based installer business system * Virtual inventory control * Supply chain data management • Telematics * MYAutoAware * MYFleetAware Training The Group Training Academy is an interactive learning environment that offers leader-led live screen training sessions and serves as a 24-7 online school. The program supports training for members with complete courses for counter sales and management skills and features a tracking and management system. The section for professional service technicians houses over 180 hours of streaming automotive, diagnostic, diesel, transmission, shop management and scan tool training videos and provides an opportunity for suppliers to integrate their training.
For more information, visit: www.thegroupapsg.com
Federated Auto Parts, headquartered in Staunton, Virginia, is one of the largest Auto Parts Distribution and Marketing organizations in North America. Federated is dedicated to supporting its customers with quality name brand parts, programs designed to grow their businesses, and experienced counter people who are knowledgeable in today’s evolving automotive technology.
Footprint 60 members 155 Distribution centers 3000+ Federated jobbers 3000+ Car care centers
FEDERATED AUTO PARTS 508 Greenville Avenue Staunton, VA 24401 UNITED STATES T. +1 540-885-8460 info@federatedautoparts.com www.federatedautoparts.com
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During 2016, 1Parts has signed global agreements with 4 parts manufacturers. In the next pages you will discover a corporate review on each of them as well as their observations based on a number of direct questions concerning their global activities and their views on 1Parts.
Contributing to a better world by creating value together with a vision for the future DENSO is one of the largest global automotive suppliers of advanced technology, systems and components, heading toward an automotive society where cars have less impact on the environment and drivers have fewer worries about traffic accidents. Everything we do is based on our philosophy: “Contributing to a better world by creating value together with a vision for the future.� Research & Development DENSO produces world-first technologies and products that increase security and safety while lowering environmental impact through our commitment to groundbreaking research and development. The pursuit of world firsts DENSO is committed to creating technologies that contribute to a better quality of life for all people. Our world-first advances range from common rail systems that dramatically improve diesel engine performance to night view technology that detects pedestrians at night.
Denso product offer
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Manufacturing Innovative products and components can only be realized if they can be manufactured. At DENSO, our technicians and engineers painstakingly refine every detail of our manufacturing systems to enable the creation of the best technologies and products. Meticulous quality control DENSO focuses on safety because cars
carry people. We were one of the first parts manufacturers to build our own test courses to evaluate our products, ensuring that people could confidently drive cars using our components. Our advanced test facilities compare with those of major carmakers and include such advances as high-low temperature wind tunnel laboratories and anechoic chambers that simulate the diverse conditions drivers encounter every day.
What is your OE expertise in the US / in Europe ? DENSO is a leading global automotive supplier of advanced technology, systems and components in the areas of thermal, powertrain control, electronics, information and safety. DENSO has developed a broad sphere of expertise and had a profound impact on the automotive and technology industries. Our array of “world-firsts” ranges from the first in-vehicle wireless cell phone charger to the QR code. Does your company take specific actions to support the traditional distribution channel and the independent repairer? Are they any different on both sides of the ocean? The traditional/independent market has always been the focus of our aftermarket activities around the globe. In Europe, understanding our customers’ local markets, speaking to them in their own language, and ensuring the widest range of products is available for delivery as quickly as possible are our priorities. This has meant investment in localization. DENSO Europe Aftermarket sells to 40 European countries, with an expanding sales team at offices in 10 countries across 6 regions and local sales representatives working in most European countries. Our investment in a more extensive warehouse network is also helping to meet distributors’ logistical requirements more efficiently and with greater flexibility. In Europe, we recently added warehouses in Leipzig and Moscow. Customers worldwide also benefit from extensive and frequent product training seminars and events. This additional support ensures each customer has the fullest knowledge of our products and sales opportunities. How do you support your customers with technical know-how? The technical information provided in U.S. and European catalogue systems and DENSO AM website is part of DENSO’s comprehensive, industry-leading customer support programs. DENSO also offers a complete set of customer trainings for distributors and professional mechanics with more than 20 courses. Additionally, our product bulletins and news releases keep our customers and the industry up-to-date. These include our technical product news advisories announcing new part numbers and application linkages. What is your general appreciation of the 1Parts initiative? 1Parts is building a strong network of independent automotive aftermarket players and distributors in different continents to harness and share their strengths and forge strategic partnerships with a select group of global supply partners. The DENSO/1Parts relationship will put more quality parts in the hands of industry professionals. This is a winning combination for DENSO, 1Parts members, their customers and the motorists who rely on us all.
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Exide Technologies is a global leader in stored energy solutions in the transportation and industrial markets. With 127 years of industry experience and operating in more than 80 countries, Exide produces a broad range of products that keep customers and their businesses POWERING THE WORLD FORWARD. History and scale, combined with a start-up mentality, make Exide the best alternative for partners who want more than simply a battery supplier. The Company’s global corporate headquarters are located in Milton, GA and the European headquarters are in Gennevilliers, France. Exide’s OE customers include some of the world’s largest car and truck manufacturers. In addition, the company is a well-respected and trusted supplier to governments, the military and the ever-expanding telecommunications and logistics industries, among many others. Success through innovation Innovation is an integral part of Exide’s history and culture. The R&D vision of the Company is to develop solutions for increasingly complex energy storage challenges to meet the needs of customers around the world. The focus is on forming strategic partnerships and relationships with OE customers who rely on Exide’s expertise in new battery technology to assist with the development of today’s more fuel-efficient vehicles. Exide also collaborates with international scientific research organizations and industry consortiums to create stored energy solutions for the future.
its C2 and C3 models with Exide as its OE battery supplier. This partnership resulted in the development of a specific AGM battery that Exide was first to launch in 2004 in the European aftermarket, followed shortly thereafter by a launch in North America. Additional success stories have occurred in commercial vehicle, motorcycle, marine and leisure markets, where Exide has created new battery products to meet anticipated growth in market demand for better performance and reliability. Essential sales support and training
In addition to offering the most advanced aftermarket batteries based on OE specifications, Exide puts great emphasis on customer service, individually tailored sales support and training. This is essential due to the rapid introduction of new vehicles with higher equipment The independent aftermarket benefits levels, complex electronic systems and greatly from Exide’s position at the forefront Start-Stop functions. The automotive of battery technology. By offering the latest battery has become a far more sophistigeneration of battery products and origi- cated component in the car – the selecnal parts matching, installers/workshops tion and replacement of which requires can compete with franchise dealers to win professional care and know-how. Spebusiness from owners of advanced vehicles. cialist installer tools may also be needed A good example are Start-Stop cars, which to reset a Battery Management System only became popular when Citroën refined (BMS). Exide helps installers understand 10
both the challenges and opportunities this new technology presents. Exide recently developed a full circle sales strategy with the 1Parts team in North America to improve the management of programs, marketing support and communication. The goal is to help Exide’s customers adapt quickly to changing markets and profit from higher battery volumes and up-selling for improved margins. The same goal applies in Europe, where Exide has developed more localized dialogue and market knowledge to address the diverse range of languages and cultures. Exide is the only lead-acid battery manufacturer with widespread local representation throughout Europe, including the growing Eastern European markets, whereas other battery manufacturers tend to rely on distributor channels or concentrate on certain regions. Find out more from your local Exide representative about how you can protect and grow your battery business in the future.
How does Exide’s OE expertise affect your AM offer – both in the US / Europe? Exide’s aftermarket batteries in North America and Europe are engineered and manufactured as OE products. The product range is equal to – or even exceeds – the original part’s performance, when following the Exide battery replacement guide. This is due to the Company’s constant focus on product development and innovation. Expertise in both Automotive and Industrial markets results in Exide offering the widest diversity of battery technologies and the right product for every need, from reliable starting of a small scooter to starting and supply power for large commercial or marine vessels. Compare and explain your brand strategies in the US and Europe. Exide is our global premium automotive brand. In addition, we also have market share in Europe with well-known local brands such as Tudor®, Fulmen®, Centra® and Deta®. Both our Europe and North America operations also offer many private label brands to meet market needs and reduce channel conflicts.
Does your company take specific actions to support the traditional distribution channel and the independent repairer? Are they any difference on both sides of the ocean? We have the same objectives on both sides of the Atlantic: 24/7 access to technical information, efficient delivery, quality products including specialty batteries for all types of customers ranging from wholesalers to installers and shop programs, comprehensive and easy-to-understand training and a flexible sales force with localized market knowledge. Exide supports the installer through technical solutions to grow and target the premium mix evolution and increase revenue for all channel partners. How do you support your customers with technical know-how? As vehicles and their electrical systems become more complex, Exide continues to place a strong emphasis on training. In Europe, where regulation standards are driving a greater adoption of Start-Stop technology, our team published a technical guide explaining the market evolution dictated by the development of Start-Stop cars. It is important for our installer/shop customers to understand, select and install Start-Stop batteries correctly. Non-OE quality AGM batteries, for example, may not deliver the expected annual fuel savings and may considerably reduce battery life. Also, Low Emission Zones (LEZ) now exist in 220 European cities and towns. It can cost up to £200 per day for a diesel vehicle to enter London’s strictly monitored LEZ if the vehicle’s emissions exceed a set limit [source: Transport for London]. Our global teams are focused on educating our traditional aftermarket customers about the importance of testing batteries, and have adopted the mantra of “Test Every Battery, Every Day, In Every Bay.” We offer guidance on diagnostics and proper battery replacement especially when dealing with new Start-Stop technology. In North America we offer Exide AGM certification for installers that are fully trained for the professional replacement of this new type of battery. 11
The company that invented its own OE quality product
In 1896, the Remy brothers developed the Remy Magneto to power the first vehicles. By 1912, the Remy Magneto and Dynamos evolved to a self-starting cranking system and the Remy brothers began developing plans for other products. More than 100 years later, the legendary product originally created by Remy lives on in the aftermarket world of rotating electrical products. And now as BorgWarner, our tradition of innovation continues as we apply our expertise to all new and remanufactured products for the automotive aftermarket.
We are North America’s largest manufacturer of aftermarket rotating electrics with an original equipment presence. We bring the experience of working with OEMs worldwide to everything we do to support professional technicians.
100% New Alternators •
Starters
and
Manufactured to meet or exceed OE specifications for improved reliability and increased durability in all conditions
First electric automotive starter
•
100% new premium components that offer the quality and performance you can count on
Remanufactured Starters and Alternators • • • •
•
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Innovative design improvements for increased performance and reduced warranty returns Superior components that are engineered for the extreme demands of today’s vehicles Environmentally efficient to save time, money and natural resources Industry-leading testing that ensures every unit is verified with intensive computerized load and power testing Remanufactured, not rebuilt, providing a more reliable product ensuring full customer satisfaction
How does your OE expertise affect your AM offer—both in the US/Europe? Our OE engineering expertise, manufacturing capabilities and operational excellence standards are transferred to the aftermarket by providing product engineering enhancements and the highest standard of remanufacturing processes backed with a customer satisfaction warranty. Does your company take specific actions to support the traditional distribution channel and the independent repairer ? We offer the most comprehensive light duty coverage available on domestic and import vehicles; Our website - RemyAutoParts.com - is loaded with tools and information such as: • Catalogue: Search for a part by number, make, year, model or engine • New Coverage: Monthly product releases that include applications for current model year • Technical Service Bulletin: Valuable technical service information to help the professional installer do the job right the first time • Product Literature: Download or order product literature Technical Support: All of our trainers are ASE Certified Technicians with hands-on experience. Our trainers also work hand-inhand with engineering to understand the latest technologies and how to translate that knowledge into real-world applications that enables the professional installer to fix vehicles accurately and efficiently. What are your company’s expectations regarding the 1Parts initiative? We are excited about the many opportunities the 1Parts initiative will provide. Working together with the global aftermarket group opens up the opportunity to exchange ideas and best practices around the world. Endless opportunities also exist around technology and marketing improvements along with networking and strong relationship building. We are looking forward to a successful partnership. “We are excited to see what the possibilities are with this new partnership. The auto parts world is shrinking and the need for strong relationships between customers and suppliers both in the US and Europe are more important today than they have ever been. BorgWarner looks forward to growing our share at the 1Parts Group as we help the 1Parts Group gain share in their respective areas of the world!” Gary Bostic, Director of LD Aftermarket Sales
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We care for you! Valeo is the automotive supplier partner to all automakers worldwide. As a technology company, Valeo proposes innovative products and systems that contribute to the reduction of CO2 emissions and to the development of intuitive driving. In 2015, Valeo achieved 14.5 billion euros sales and invested over 10% of its original equipment sales in research and development. Valeo is made up of 4 Business Groups and an aftermarket activity, Valeo Service. The Comfort and Driving Assistance Systems Business Group develops innovative and intuitive interfaces essential to the automated, connected car of tomorrow. The Powertrain Systems Business Group develops innovative powertrain solutions aimed at reducing fuel consumption and CO2 emissions without compromising driving performance and pleasure. The Thermal Systems Business Group develops and manufactures systems, modules and components to manage the thermal energy of the powertrain and provide comfort inside the cabin for each passenger.
Valeo Service cares for you in many dimensions: • Product Care, with over 90 years of OE expertise and a wide car park coverage in the US and in Europe , you can trust the aftermarket Specialist. • Technical Care, with the Tech Care program assistance for workshops (Tools, Technical training, Technical Support and Technical promotion). • Marketing Care, by providing our customers all promotion and communication tools to accelerate sell out • Customer Care, by assisting our customers beyond their expectations with dedicated CRM services • Logistic care, with a strong delivery and availability commitment • Digital Care with the Valeo digital program including clever web applications and a fast growing presence on social networks.
Eric Schuler, President of Valeo Service speeds up the company’s growth and expands our foot print to reach more than 150 countries. The dedicated organization in Europe is led by Menno Schonlank Director of Valeo Service IAM Europe, while Americas are led by The Visibility Systems Business Group Marcin Waclzak Director of Valeo Service designs and produces innovative IAM North and South America. systems which offer the driver perfect Trust the Aftermarket specialist with visibility, thereby improving the safety over 3,500 new products added of both driver and passengers. each year, covering 14 Valeo Service supplies replacement parts to the Independent aftermarket and original equipment spares (OES) to the automakers. As an Aftermarket specialist
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Eric Schuler, President of Valeo Service
product lines for passenger car and 11 for industrial vehicles. The portfolio is built around 5 main markets: repair, maintenance, crash, post-equipment and trucks. Regarding the product lines, the growing product catalogue already covers transmission systems, wiper systems, lighting systems, engine cooling, Air Conditioning and electrical systems on the American Market. In Europe 8 product lines comes on top of this offer (Braking systems, Engine filtration, Engine management systems, Security systems, Switches systems, Air management systems, electrical accessories and Driving and parking assistance). All products launches and existing ranges are developed by Valeo Service together with associated services for distributor, workshops and end-users.
Compare and explain your brand strategies in the US and Europe. Valeo is the mother brand of the group which benefit from all OE innovation credentials and is used in both Europe and USA as the leading aftermarket brand. In addition, the aftermarket benefit from many Brands acquired over our history and is leveraging them by territory depending on channel management opportunities and domestic Brand notoriety . SWF ( German wiping specialist Brand ) , Cibié ( Lighting in extreme conditions Brand ) , Marchal ( Used solely in France ) or PJ ( wiping specialist network ) are part of the Valeo brand portfolio and play a key role on the markets they address. The Valeo portfolio is also rich of many sub brands ( like Silencio in Europe or Ultimate in USA ) or private labels for product lines like wipers, particularly responsive to category management segmentation approach and to DIY communication. Catalogue data is important: What efforts does your company take to provide correct and extensive professional data to the aftermarket in Europe and the US ? Valeo is strongly involved in delivering the most accurate data possible. In Europe we are one of the original members partnering to create TecDoc® and thus benefit from a mature know how. In The US Valeo closely works with MyCarPartTM ensuring a qualitative database for a specific car park. Valeo Data management helps us propose much more than catalogs with cross list , enriching them with videos, QR-codes, fitting instructions, technical tips : we dedicate a team of data specialists to provide services over the top. How do you support your customers with technical know-how? The Valeo TechCare program is the major complement to the product offer. The Program features workshops tools, technical hotlines assistance, a technical promoters service - an expert team who visits garages and motor factors offering support - and training where it’s needed. Our Technical Team offers their services to help you understand our products and help you sell them. Our after sales service also ensures your customers have everything they need to diagnose , fit and use Valeo products correctly throughout the life of the vehicule. What do you expect of this collaboration on the mid- and long term ? The best experiences in terms of product range , services , technical and customer care will be shared in both areas increasing the added value across the full distribution chain up to the driver . Valeo’s collaboration with 1Parts members will speed up our common growth and our capacity to develop together the best of services around the world to care for the workshops and the drivers and be a preferred supplier for each of our product lines as you can trust Valeo Service, the aftermarket Specialist.