Responsible editor: Autodistribution International, Kortenberg, Belgium
Edition: 12/2018
news www.ad- europe.com
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Dear Business Partners and Friends, It is undoubtedly no longer a question of whether, but only when, digitisation in connection with the service control intentions of vehicle manufacturers will lead to a radical change in our joint parts and repair business. Likewise, it is no longer a question of whether, but only when, the so-called GAFAs (Google, Apple, Facebook, Amazon) will turn the automotive world upside down with the digital networking of stationary parts and service units. In this respect, only one question also remains for us all: How can we somewhat counteract this disruptive and inevitable process of change together and benefit from it ourselves? It will certainly be a few years yet before the impact is felt in our business. We could therefore sit back and let others gain their undoubtedly very expensive experience in digital process acceleration. It may take until 2021 for Brussels to pass legislation governing the handling of driver and vehicle-generated data. But even if it is then regulated by law that the data of vehicles on Europe’s roads, approximately 60 percent of which will be networked by then, must also be made accessible to IAM for use in the parts and repair business, this data will neither be standardised nor interoperable. The processing thus necessary is then to be performed via recently initiated industry solutions such as Caruso or Carmunication, which would like to prepare and provide this data for different business models for a fee. So far, so bad! If we were to wait until 2021 and only then begin to find an answer to the aforementioned developments, another two years at least would elapse, giving vehicle manufacturers with established mobility solutions such as BMW Connected Drive or Mercedes me a lead of 6 - 8 years. The dynamic developments in the IT world would make it impossible to catch up. The result would be an initially gradual and then ever faster shift of service business to authorised repair shops or contracted independent workshops which would have to meet strict conditions. The extent to which the influences of the aforementioned GAFAs simultaneously become evident can only be guessed at today and is certainly to be seen as relevant.
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The IAM and the individual ITGs (International Trade Groups) are therefore strongly encouraged to waste no time in developing their own platforms. However, whether it makes sense and is economically feasible for each of them to invest tens of millions of euro is clearly questionable. An industry solution borne equally by all parties would probably be a better choice for the IAM, provided that the systems are set up neutrally and with a commonly defined standard. However, since the notion of competition is becoming increasingly pronounced at retail level and large individual companies are convinced of their respective superiority and indispensability in the market, the attempt to arrive at an industry solution may already be regarded as illusionary today. In this respect, there will also be a race to produce the fastest and best solution at the level of mobility platforms. Within ADI too, there are already different models which we are analysing and testing with regards to their combinability at this stage. In addition to digitisation, globalisation is naturally also rated as a key factor influencing our parts business. Spectacular takeovers of traditional European companies by predominantly American companies are fuelling speculation about further structural changes in the IAM and make the development of a sustainable distribution strategy for the parts industry appear virtually impossible. And any parts manufacturer which has not yet managed to harmonise prices, at least in Europe, now faces disconcerting reductions in sales, for which no provision has been made, because of the Best Price demands of international sales intermediaries. At the same time, however, it is important to keep mediumsized parts dealers competitive and dependence on individual international clients within limits. Finding the right solution here is likely to be one of the greatest challenges faced by our manufacturing partners in years to come, especially without any experience from the past to go on for the newly established dimension of change.
Conversely, parts manufacturers are also trying to safeguard their future and their raison d’être through acquisitions or mergers and trying to be able to counterbalance the concentration of trade in the IAM on the one hand, and to offer the right technology for the right products of the future on the other. This spiral on both sides makes our business so difficult and exciting at the same time. We are undoubtedly in the midst of a transformation involving a lot of movement and change already and therefore, in addition to the risks, offering a wealth of opportunities to which we should give our full attention. With this in mind, dear business partners, colleagues and friends, I should like to wish you a very Merry Christmas and happiness and health in the New Year. Yours Thomas Vollmar President of ADI
IN THIS NEWSLETTER 4
Gordon becomes AD Polska
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Autodistribution France: the AD Network’s new goals
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1Parts, ADI’s joint venture with The Group
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Parts Holding Europe (Autodistribution France) unveils its Logistéo platform
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AD Finland starting tyre business
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Josep Bosch (AD Parts), the most important professional in Distribution
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AD RUSSIA celebrates its 15th Anniversary
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Driving Automotive Distribution
latest news from the AD Group
Responsible editor: ADI cvba (Autodistribution International), Kortenberg, Belgium This magazine is distributed to all business relations and distributor members of the ADI group. To subscribe or unsubscribe contact us at ADI cvba, Leuvensesteenweg 272, 3070 Kortenberg, Belgium, (T) +32 2 759 29 95 or (E) news@adi.be.
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becomes Autodistribution International (ADI) is pleased to announce that the Polish company Gordon will join ADI as 25th partner. This was decided on 28.11.2018 by the ADI Board of Directors and will have effect on January 1st 2019. Since its founding in 1991 Gordon has built a solid network on Polish territory: the company operates a central warehouse (Zamosc) and 5 regional warehouses (Radom, Olsztyn, Ruda Slaska, Gdansk and Chojnice) delivering to 156 outlets throughout the country. Gordon employs 1500 people. Its national turnover of approximately 200 M€ in automotive parts for passenger cars and trucks, tools and equipment leaves the company among the major players in the Polish automotive aftermarket. Jacek Gordon, founder and owner of Gordon/AD Polska is excited about the new turning this affiliation represents to his company: “Our business has been successful over the last years in establishing an efficient logistics network and a solid customer base. Today’s automotive world however offers numerous challenges, and we feel that ADI has precisely the tools that will allow us to fully seize them as opportunities rather than seeing them as hurdles. We look forward to leverage our business on ADI's (and its Partners') know-how in key domains such as concept marketing (AD Garage), technical data and education for mechanics (Eure!Car) and supplier/brands portfolio. This develop-
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AD Polska ment will be beneficial for our customers and accelerate our existing growth strategy!“. ADI is confident to have found the right partner in Poland. Thomas Vollmar - ADI President – comments the new partnership: “We have come to know Gordon as a highly professional and dynamic company with solid foundations and ambitions that match our own. As of January 1st AD Polska and their team will be our gateway to bring the AD concepts into the Polish aftermarket, for the benefit of customers and suppliers”.
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Autodistribution France: the AD Network ’s new goals
The AD Network, which gathered at a conference in Malta between 27 and 30 September, has revealed the retail brand’s new promise, “AD is a sure bet”, and the business opportunities that the retail brand wishes to develop. During an “extraordinary show of force” (to use the words spoken by Stéphane Antiglio, the Chairman of Parts Holding Europe, formerly Autodis Group) the Group gathered all of the members of the AD Networks, including mechanics (Garage AD and Garage AD Expert), bodywork (AD Carrosserie) and heavy goods vehicles (AD Poids Lourds). A total of 3,500 people, who represent 70% of the AD companies, had travelled to this island of 40,000 inhabitants in the Mediterranean, in order to find out about the “Preference 2022” development plan, which will be rolled out as from January 2019. This plan, which succeeds the “Reference 2018” plan presented in 2014, will include increased communications, inter alia, thanks to a television advertising budget of €5 million for 2019, in order to increase awareness of the network, and convey the evidence of its new promise to the general public: • a “lifetime guarantee” for bodywork, and a refunded “counter inspection”; • a “definite upgrade to current standards” for services as part of environmentally-friendly maintenance (Eco-Entretien). EcoEntretien is an initiative launched by AEE – Association de l’Ecoentretien (Environmentally-Friendly Maintenance Association) of
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which the AD Network in France forms part, and which is intended to help the oldest vehicles pass the new WLTP (Worldwide harmonized Light vehicle Test Procedure) checks (www.ecoentretien.eu). The AD Network is aiming to have 500 AD garages with EnvironmentallyFriendly Maintenance certification (i.e. one quarter of the network), and over 1,000 by the end of 2019. According to Eddy Albert, the Head of the Light Vehicle Mechanics Networks, the challenge amounts to revenues of €23 million. • A 5-year guarantee for any services performed in the AD Network following a meeting booked on the AD.fr online platform.
The central Autodistribution facility is continuing to enhance its product and service offering. Accordingly, Autodistribution has revealed a new exclusive agreement signed with the Leao Tyre tyre brand (owned by the Chinese Ling Long Group), the setting up of a renovation service for electrical equipment (with a specialist based in Nantes), and a range of spare parts for re-use (with Opisto.fr).
Opportunities for diversification are being offered to the Network, including glass (Glass Auto service), the sale of new and second-hand cars (CarGroup, Elite Auto), as well as a national long-term car hire offering dedicated to VSCs and SMCs. The AD Network also wants to enter the maintenance market for longterm hire vehicles, by offering major multi-brand car hire companies national fixed-rates and centralised invoicing, as is already the case in the bodywork business, and especially at AD.
New IT and digital tools
currently being rolled out. The aim is to equip 25% of the network with this service in 2019, and 100% by 2022. The service will be linked to an interactive receipt tablet, in order to save time and encourage additional sales. The Group’s online ordering website, Autossimo, has also been renewed, including a simplified search engine, and the inclusion of The Group is also investing heavily in digital technology and IT, in Cora bodywork parts as from the first quarter of 2019. order to develop its network. A new management tool, ADMS 360 (with Fiducial), which interfaces with the Autossimo online booking website and online estimate websites (AD.fr and IDgarages.com), is
Stéphane Antiglio, Chairman of Parts Holding Europe, summed up the Preference 2022 Plan in one sentence: “Autodistribution’s job is not only to sell you spare parts as well as possible, but also to help you to develop and ensure the long-term future of your business”. 7
ADI’s joint venture with
The
G roup 1Parts, ADI’s joint venture with The Group (Pronto + Federated), a leader in the IAM distribution in North and Central America (USA, Canada, Mexico, Panama, Puerto Rico), operational since early 2015, covers at present 56 % of the world’s passenger car potential.
Within the framework of global agreements 1Parts is harmonising and concentrating its purchase potential on parts manufacturers with adequate worldwide coverage, at present 14. End of October at the occasion of the AAPEX show in Las Vegas co-CEO’s Bill Maggs and Omer Wesemael and VP’s Mike Mohler and Nico Muyldermans had productive meetings with the global management teams of the 1Parts contract suppliers.
302 M 27%
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+
From l. to. r.: Steven Zimmer (Lumileds) - Dave Illes (Lumileds) - Pascal Popis (Lumileds) - Bill Maggs (1Parts)
332 M 29%
Finland: The delegation was hosted by Eero Broman
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634 M 56%
AD Hessumobiili in Klaukkala
Early January Bill and Omer will focus on their mandates as Directors on the 1Parts board and will entrust the further development of 1Parts to a fulltime CEO: Alex Gelbcke. VP’s Mike and Nico will support Alex in the daily management of the company.
From l. to. r.: Nico Muyldermans - Mike Mohler
Alex is Belgian, 52 years old, married and proud father of 2 children. Equiped with a Maste r’s degree in Busines s and Management Engineerin g at Solvay Brussels Scho ol of Management and Econom ics (Brussels University), Al ex is meanwhile a seasoned Executive with over 25 years of experience in Gene ral Management, Mar ke ting, Sales and Operations, acquired in well establi shed companies in various cu ltural environments. Working for leading companies like TOTAL, BIA (equipment & service provider to mining and construction sectors), TENNECO and recently BI HR Europe (leading distribu tor in motorcycle Parts & Accessories), Alex will now lead 1Parts in its fu rth er development.
For From l. to. r.: Omer Wesemael - Alex Gelbcke
Global Vendor Agreements 2018
m o r e i n f o r m at i o n o n
1P a r t s ,
s e e w w w .1 pa r t s . n e t
Parts Holding Europe (Autodistribution France) unveils its L ogistéo platform On 12 October, Autodistribution France officially unveiled Logistéo, its new national logistics platform now based in Reau, to the south of Paris. The Logistéo platform can store up to 120 000 automotive spare part items over 38 000 m2. Up to 60 000 order lines are prepared daily thanks to an innovative automated facility, with an instant capacity of 3 000 express order lines per hour. The site has a fully automated new storage and order preparation system, “Le cuby”, composed of 120 shuttles on 24 levels for a capacity of 100 000 boxes. Le cuby transports two boxes per second inbound and outbound. The boxes and packages circulate on 3 000 metres of conveyors throughout the mechanised plant. Stéphane Antiglio, President of PHE says: “This investment has provided Parts Holding Europe (former Autodis Group) with the best performing logistics tool in the European automotive aftermarket. Being able to obtain the right spare part as quickly as possible is a decisive selection criterion for our clients. With this platform, we respond to this demand: the product range is larger and the delivery times are shorter. Logistéo is a major asset in the development of PHE, both in France and internationally.”
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Laurent Gontharet, Supply Chain Director at Autodistribution: “The technologies employed at this site are perfectly tailored to the stored products and to the preparation methods. We combine manual, mechanised and automated processes. This structure enables us to enhance our responsiveness. We take orders as late as possible, beyond 7 pm. We deliver in the night. The repairmen have their parts available when their garages open. Logistéo helps to reduce vehicle downtime at the garage.”
AD Finland starting tyre business The new agreement signed between AD Finland and ADI supplier Continental is the start of the tyre business for AD Finland and its wholesalers. Continental will be the main supplier for premium tyres, both for winter and summer. Also for the mid-price segment Continental will supply a second brand. AD Varaosamaailma, a strong B2B market operator offers a complete solution for the workshops. The orders placed by the workshops are delivered at the latest next day all over Finland. Motonet, the B2C-sales network (Motonet is owned by the Bromangroup, the main shareholder of AD Finland) supplies tyres
for both private car owners and Motonetworkshops. The Motonet stores feature nice tyre walls with seasonally selected tyre samples. Delivery is done in a service desk or in a Motonet workshop. According to finnish law every car owner must have 2 complete sets of tyres, one for the summer, the other one for the winter period, storing these sets is a problem for many households. The AD Finland / Motonet tyre concept provides a solution for the storage of these tyres and therefore set up a tyre hotel with a capacity for 20 000 tyres (more tyre hotels will be opened soon).
David Martin, product manager for tyres comments: “ With our new tyre concept workshops will be able to invoice more labour time and it is an additional service for the motorist in his favorite workshop. The first reactions from the customers are very positive, we are eager to roll-out the tyre concept throughout Finland. � 11
Josep Bosch (AD P arts), the most important professional in
Distribution On 19 September, AUTOPOS, one of the most prestigious Spanish magazines in the sector, awarded the Prize of « Most important Professional in Distribution » to the president of AD Parts (and Honorary President of AD International), Josep Bosch. This event took place in the Goya Theatre in Madrid, in front of an audience of more than 400 people, including the 150 major OEMs who had voted in the preceding days. Josep Bosch received the award from David Moneo, director of IFEMA MOTORTEC Automechanika Madrid and Miguel Ángel Prieto, editor in chief at Autopos. The criteria for the distinction were honesty, professional quality, merits and success achieved. In his speech of thanks, Josep Bosch took the opportunity to draw attention to the OEMs’ duty to safeguard the balance of the market: « … Other actors are currently appearing on the market who are also vehicle manufacturers. If those of you who are in some way involved with the independent aftermarket fail to ensure the balance of this market, the balance of prices, if you fail to protect it, then we may all be in for a hard time. So defend our jobs and at the same time you will be helping us to preserve our companies. » Among the 20 first prize winners were 6 representatives from the AD Parts Group.
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AD RUSSIA celebrates its 15th Anniversary On August 29, 2018, the AD Russia Group, a pioneer company in the Russian aftermarket business and one of the largest distributors in the Russian market, celebrated its 15th anniversary. The event was held in one of the most beautiful and significant historical and architectural monuments of Moscow - the Metropol Hotel. More than 200 guests, professionals of the aftermarket, suppliers with which the AD Russia team has close and trusting relationships, gathered to congratulate AD Russia on this remarkable event.
Russia has 44 outlets from Murmansk to Krasnodar and from Voronezh to Vladivostok. 14 sales offices and 44 modern sales centers of AD Russia cover 44 cities of Russia. AD Russia has 6 partners all united by a common philosophy and striving for continuous improvement in the distribution of car parts. A huge range of spare parts - over 250,000 SKU's, are available in the warehouses of the AD Russia wholesalers. The success of AD Russia lies in the unity of its team and partners and the close cooperation with the suppliers. The work of this well-coordinated system allows achieving maximum results and provides leadership positions in the aftermarket for many years.
The welcoming ceremony for the guests was filled with symbolism each guest was treated to a glass of vodka and a spoon of black caviar, just as it happened 15 years ago when the PAG group joined AD International. 15 years, during which the overall economic situation was not easy, showing periods with an average growth of 7% (2003-2008), zero growth and peaks from -7% (2009) to 3% (2015). Until today AD Russia’s turnover increased by more than 11 times, and the number of orders delivered daily increased to 5,000. In the same period, the total warehouse space increased from 12,000 m2 to 69,000 m2, the delivery fleet increased from 30 to 478 units. Meanwhile AD
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about ADI ADI, founded in 1970, is a leading automotive aftermarket player with headquarters in Kortenberg, Belgium (EU). Its nearly 600 AD distributors deliver parts, products, tools and equipment to professional installers in 40 countries in Europe, Northern Africa and Central Asia.
ADI CSLL Leuvensesteenweg 272 B - 3070 Kortenberg / Belgium T. +32 2 759 29 95 - F. +32 2 759 90 26 info@adi.be - www.ad-europe.com 14
footprint
25 partners 40 nations 600 AD distributors 3000 AD distribution outlets Turnover: 6.5 billion Euro
technical support & education Eure!Car is ADI’s exclusive program for enhancement and promotion of technical training and support. More information on www.eurecar.org
contract suppliers
®
The experienced team in the AD International headquarters in Kortenberg/Belgium co-ordinates the group’s activities and liaises with the international management teams of ADI’s contract suppliers. All ADI contract suppliers comply with ADI’s criteria in terms of product quality, reliability, range and availability.
AD Garage As an extended service from the AD Distributor to his customers, professional repairers can benefit from the AD image by joining the AD Garage network. The network counts 4400 members in 16 countries. More information on www.ad-garage.com
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