ALLPRO Independent Magazine May/June 2022 by ALLPRO Corporation

In dependent May/June 2022

I N VEN TO RY MANAGE M E NT 101

TH E SU PPLY C H A IN STO R M

N E TWO R K IN G WI T H N E XTG E N

Understanding your stockroom's hidden costs & optimizing your product flow

ALLPRO mitigates challenges placed on members due to issues sourcing supplies

Get to know globe-trotting, forward-thinking, NextGen Committee member, Rachel O'Connor

An A L L PRO® Pu bl ic atio n

The best just got better

AT TH E M I K E | F U T U R E

@ A L L PROCOR P

SPRING SHOW IN THE BAHAMAS MI CHAEL BEAUDOI N Executive Vice President ALLPRO Corporation | 813.690.7985

S P O T L I G H T:

ike everything these days, accomplishing something that used to be routine is incredibly hard. For this group, ‘hard’ is not something that would deter us from doing something meaningful. Executing a large show in a foreign country, navigating the CDC, obtaining Travel Health Visas, and risking an outbreak would be enough to have others cancel the show, as was evidenced by all the industries that canceled domestic shows. We did not cancel, and we were rewarded with the most memorable show in group history. Once you cleared the COVID-19 test and filled out the Bahamas Travel Health Visa, the show was smooth sailing. My first takeaway from the show is that we all transformed over the past two years. There were over 1,200 attendees at the show, far surpassing other ALLPRO shows in sheer attendance. Guests were appreciative just to be together again as

7 BRACKIN PAINT & SUPPLY A father-son duo embarks on expansion with an ecommerce site & larger store footprint 11 A&E PAINT CENTERS Building a successful paint empire from the bottom up

a group, and in many cases, with their families. The energy level was high and once the show started, issues that members planned to address were quickly forgotten. The property was visually stimulating, with views of the ocean, pools, and palm trees at almost every turn. The opening reception was like none other I have experienced in my 22 years being associated with the group (including as a supplier). People poured down the steps in a constant stream, filling the pool and patio area, which was overflowing with food, drinks, and entertainment. The night was warm and perfect. The next morning, new ALLPRO Board President Josh Johnson opened the session, commending the group on their performance and the impact the independent paint channel is having on the industry. I was also able to address the group - my first time on stage in two years - and it felt great to be back. During the session, I reviewed the following items: • ALLPRO 2021 Finish & Comparison to Other Channels • ALLPRO Initiatives for 2022 • Member Recognition: 2021 Distinguished Members & 20 Line Club • A Look Ahead A full video copy of the presentation is available for anyone interested. The two most important points of my address were

14 NEW PLACES & NEW FACES Meeting some of our newest ALLPRO members at the Spring Show 18 SPRING SHOW Reuniting in the beautiful Bahamas for ALLPRO's Spring Show

how the success of the group through the pandemic has elevated the independent channel, and the importance of our unique culture to the viability of the group. We have outpaced all other channels in growth due to the entrepreneurial spirit of both the members and suppliers and our sheer determination to succeed. As difficult as these times have been, they favored the independent, who is far better equipped to meet the needs and demands of the market. In my address, I told the group that despite all the efforts to provide attendees with show deals, you’re not going to remember your best deal 10 years from now. You’re going to remember the opening reception, bringing your family, and the people that you met - that’s what lasts, that’s what builds our culture, and that’s what makes us a special group. I also had the pleasure of announcing that we hired Styx as our closing band for next spring’s show and also revealed that a fall show is booked in Dublin, Ireland. Both events are designed to build and enhance the ALLPRO culture. My hope is that the show reinvigorates the group and encourages members to utilize the many resources ALLPRO has to offer. I also look forward to seeing how the Spring Show in the Bahamas revitalizes the strong interconnectivity of the group and brings continued success to all stakeholders.

28 INVENTORY MANAGEMENT 101 Understanding your stockroom's hidden costs & optimizing your product flow 36 THE SUPPLY CHAIN STORM ALLPRO mitigates challenges placed on members due to issues sourcing supplies

May/Ju n e 2022

44 NETWORKING WITH NEXTGEN Get to know globe-trotting, forward-thinking, NextGen committee member, Rachel O'Conner 50 FINAL COAT Spectrum Paint mixes piano paint for the stars

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Congratulations to the new additions to our ALLPRO family! Welcome to our ALLPRO family! Please join us in welcoming SUNSET PAINTS of Brookhaven, GA; SURFACE PREP SUPPLY of Haines City, FL; and YES PAINT of Anchorage, AK to the ALLPRO family of independent retailers!

SHARE YOUR NEWS! If you are involved in a community event, special project, charity, or are celebrating a milestone, please share your news with Susie Fontana at susanne.fontana@allprocorp.com.

Congratulations to the following members on their recent expansions:

VOLUME 5 ISSUE 3

BOISE PAINT & SUPPLY has opened a new store in Meridian, ID; CANPRO DECORATING PRODUCTS has added new member ROTBLOTTS DISCOUNT WAREHOUSE INC. in Toronto, Ontario; CATALINA PAINTS has opened a new location in Studio City, CA; FLANAGAN PAINT & SUPPLY will be opening 2 new stores, one in Wentzville, MO and the other in Edwardsville, IL; HIRSHFIELD’S has opened a new store in Detroit Lakes, MN; HOME DÉCOR GROUP will be opening three new stores, located in Worcester, MA, Needham, MA, and Hudson, MA; JC LICHT has added two new locations, one in Chicago, IL and the other in Forest Park, IL; JOHNSON PAINT COMPANY has opened a new store in Newton, MA; MILLER PAINT CO. has opened a new store in Battle Ground, WA; MONARCH PAINT STORES of DC will be opening a new store in Alexandria, VA this summer; REGAL DECORATING & PAINT CENTERS has opened two new stores, one in Fort Lauderdale, FL and the other in Plantation, FL; RICCIARDI BROTHERS will be opening a new store in Freehold, NJ; SCHUELE PAINT has opened a new store in Buffalo, NY; SPECTRUM PAINT EAST opened a new store in Blacksburg, VA; and THE PAINT CENTERS opened a new store in Waterford, MI.

ALLPRO Leadership board president Josh Johnson Executive Vice President Mike Beaudoin Vice President of Merchandising Scott Morath Chief Financial Officer Jonathan Garrett Marketing manager Susie Fontana

About ALLPRO Independent We are a bimonthly publication dedicated to strengthening the ALLPRO community with relevant stories and news. Your suggestions, opinions, and feedback are encouraged. on the cover: ALLPRO Opening Reception, Nassau Bahamas 2022 by Aubrey James Projects

How to Reach Us Write to us at ALLPRO Corporation 4946 Joanne Kearney Blvd., Tampa, FL 33619 Or contact us at 813.628.4800 or by email at allpro@allprocorp.com All publishing services provided by Gallon Creative www.galloncreative.com

In Memoriam: Donald Strube Don Strube Sr., one of Color Wheel Paint's original Co-Founders, passed away Friday, April 15. Mr. Strube was a pioneer in the coating's industry in Florida and was instrumental in paving the way for many of those with careers in the industry today.

Mr. Strube was an incredible leader to all that had the opportunity to work for and with him, and an even more inspiring, humble and giving man. The legacy he leaves in so many factions of the industry will have a truly lasting impact on countless people.

Pictured: Jerome Jackson, Warehouse Manager, Les Howell, Tool Repair and Tyler Brackin, Manager/Part Owner, with Piper, Brackin's chief customer service officer. 6 | May/J u n e 2 022 | ALLPRO INDEPENDENT

SPOTLIGHT | BRAC K I N PAINT & S U PPLY

brackin paint & supply ood business sense and a love of paint seem to run in the family at Brackin Paint & Supply. The company’s owner, Brad Brackin, was raised watching his father work his way up the ladder at Sherwin Williams, eventually setting out on his own to work in the industrial market. “Because of what I saw him do with his business and how successful he was, we tried to bring that same energy to our business when we opened our own,” explains Brad, who opened Brackin Paint & Supply, then Brackin Wholesale, in 1981 on what he calls “a shoestring budget.” Now, 41 years later, they’re serving a 200-mile radius and Brad’s son Tyler is following closely in the Brackin men’s footsteps—and bringing good ideas to the table. “It was actually Tyler’s idea to join ALLPRO two years ago,” recalls Brad, who made their membership official in January of 2020, right before the global pandemic took hold. “They’ve opened the door for us to offer more options to our customer,” shares Brad. Brackin found it particularly helpful to have partners like ALLPRO and Benjamin Moore in their corner when many retailers were struggling with inventory issues. “With supply chain issues over the last few years, it’s been difficult for everybody, but they’ve worked with our staff to make sure we have products on our shelves.” Additionally, Brad over-stocked to reduce disruptions in product flow. “We just don’t take anything for granted anymore,” says Brad, “We’re constantly on top of things.”

Images: Nicole Everson

Brackin prides itself on having a diverse customer base. Offering both an in-town and out-of-town delivery service as well as a full-service equipment repair center, they cater to DIYers, painting pros, local cabinet shops, and original equipment manufacturers. With a varied customer also comes varied products, meaning Brad’s team of 20 works diligently to stay up to date on product knowledge, especially since they are firm believers in try before you buy. “You can read a sheet, but getting your hands on it and actually using it is a big thing. If you have confidence in the product, then the customer will see that and they’ll have more confidence in what they’re buying.”

May/Ju n e 2022

| ALLPRO INDEPENDENT | 7

Brad, who abides by a simple leadership philosophy (“be honest and fair always and lead by example”), doesn’t seem to have trouble rallying the troops, likening his company culture to a family atmosphere which extends to his store’s patrons and neighborhood of Dothan, Alabama. Recently, Brad donated paint to a local high school to help give it a facelift. “We’re a small enough community that we can know everyone, but also the fact that our customers have been with us as long as they have, they aren’t just customers, they are friends,” Brad explains. As far as the future goes, both Brad and Tyler are excited for what’s to come. The father-son duo are currently working on launching a new ecommerce website, which will replace their current domain with a more user-friendly interface, allowing customers the convenience of shopping from the comfort of their homes. “We believe the digital age is here,” conveys Brad, “so we’ve hired a local firm who is going to manage our online store and our marketing and social media… we feel like it’s going to be really helpful.” Brackin also has a small addition in the works to expand their store’s footprint. “We’re always looking for new opportunities to make us successful,” Tyler assures, with Brad adding “We’re excited about the next 10-15 years because I believe our company has just scratched the surface of what we can do.”

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ANYTHING FROM KENNY ROGERS TO WIDESPREAD PANIC, BUT MAINLY CLASSIC ROCK. Q: C ok e or p e p s i ? A: Dr. Pepper Q: F avori te p ain t c o lo r a n d wh y ? A: Simply White OC-117 by Benjamin Moore. It'll go with anything. It's extremely popular with us the last few years. 8 | M ay/J u n e 2 022 | ALLPRO INDEPENDENT

Pictured above: Lance Wasson, Front Counter Sales Manager, Jason Ball “jball” Warehouse/Delivery, Jeff Ward, Front Counter Sales, Robert Fagan, Shipping Logistics/IT, JJ, Warehouse Manager, Lucas Wasson, Office Manager, Cynthia Letorneau Custom Aerosol Cans, Heath Lee, Outside Sales, April Davidson, Purchasing Agent, Ricky Jones, Front Counter Sales, Matt Ham, Asst. Warehouse Manager. Not Pictured, Brad Brackin, Owner/ Outside Sales, Lori McGriff, Purchasing, Clay Lewis, Office Manager, Doug Falk, Outside Sales, Kelly Shaver, Accountant, Danny McLain, Out of Town Delivery.

PROTECTING WOOD FROM COAST TO COAST Sansin expands operations in the U.S. to support increased customer demand and a growing dealer network. “Sansin sets the bar for excellence in envirofriendly wood finishes which matters to our customers.” Jeff Gray, Gray’s Paint & Flooring Burlingame, California

“Sansin gives us a competitive edge and market ownership to grow.”

Demand for wood building continues to grow across the US. To meet demand for high performance wood protection, Sansin is expanding in the United States with a new distribution, manufacturing and sales facility based in Rhode Island. The new location will help service the company’s growing customer base and honor our unwavering commitment to supporting independent dealers in the AllPro network.

Sansin America will offer a complete portfolio of interior/exterior stains and finishes, along with weathering treatments, fire retardant finishes, and specialty wood products. Now is the time to position for growth. Exclusively available to qualifying markets and independent dealers. Contact us today about joining our premier dealer network. Visit sansin.com or call 1-877-SANSIN-1.

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Austin Young, Owner/Director of Sales 10 | M ay/J u n e 2 022 | ALLPRO INDEPENDENT

SPOTLIGHT | A& E PAINT CE NT E R S

a &e p a i n t c e n t e r s ome were surprised by A&E Paint Centers’ success. Its first location opened in June of 2008, a time that the owners’ son, Austin Young, says was “the absolutely wrong time to buy any property.” His mother, Mary, had been a PPG employee when the store she worked for in North Port Charlotte, Florida, announced it would join the flock of businesses closing up shop in response to the recession. Austin recalls his parents weighing the pros and cons of having to relocate with the potential stress of taking on the risk of striking off on their own, and decided to buy up PPG’s remaining inventory and equipment and give it their best shot. Despite the odds being stacked against them, their big move has paid off in spades. They now have four locations under their belt. Austin is quick to clarify that their success didn’t always come easy. Once his parents made the bold decision to open their own paint store, Austin and his brother, Eric, moved down from Kentucky to help, with their sister following a few years later. “I remember very distinctly in those early days, we would have one or two people come in,” shares Austin. During that transitional period, Mary had stayed on with PPG as an outside sales rep to provide additional income while they worked to find their footing. But the fail-safe proved to be a redundancy after a while. Business picked up and word got out, and soon they found themselves scouting for a second location.

Images: Rob Hurth Photography

“We had no real intentions of actually growing,” admits Austin. “But as things started to pick up and do better, we were doing a lot of business to the south, so the natural thought process was ‘do we want to open another store?’” Open another store they did. And then two more followed. Whether they sought out a busy intersection or took over a building that had previously been established as a paint store, each spot was strategically selected, ensuring enough distance between the locations to avoid cannibalizing any business. A&E serves a predominantly commercial demographic, so their approach has always differed slightly from the average retailer. Although they’ve experienced rapid growth since

May/Ju n e 2022

| ALLPRO INDEPENDENT | 11

their start, they are already keenly aware of just how relationshipdriven the business is. “You don’t want to lose those core principles that separate us from big box stores,” explains Austin, who acknowledges that maintaining high standards becomes more and more challenging as more employees are required to serve your customer base. “Our philosophy has always been: Don’t say no. We try to separate ourselves with service. And it’s not that we never make mistakes, but when we do, the first thing is to find out ‘how do we fix this’ instead of pointing fingers. We talk to [our staff] all the time about that.” Clear communication and good training can go a long way, especially when you have a knack for finding the talent you need. Austin and his family have worked hard to develop incentives to hire and retain good employees. Employees at A&E (which total 30) are entitled two weeks paid vacation after six months, a 25k life insurance policy, a 401k, and an insurance reimbursement program. But more than anything, Austin feels that the old cliché rings true: Treat employees how you would want to be treated. “We do feel like our staff is family and we try to treat them that way. We try to be flexible. Our pay is competitive, but there are other businesses that can offer more money than we can, so we try to be flexible. If you need to take a week off to care for your family, there are things we can do. You don’t get that other places.” Adaptable policies like A&E’s family leave, however informal, took on a premium during the pandemic. With regular systems of operation suddenly up in the air and subject to delays and disruptions, it’s the relationships they’ve built that helped them weather the storm. “The biggest challenge for us [was] maintaining inventory,” shares Austin. “But in hindsight, we’ve actually done a really great job and that’s where Benjamin Moore and PPG [A&E carries a 50/50 split between the two paint suppliers], and having those good, close, almost friendship-like relationships with our reps was extremely beneficial.”

12 | M ay/J u n e 2 022 | ALLPRO INDEPENDENT

Seemingly overnight, Austin went from director of sales to inventory control purchasing, trying to stay ahead of things by ordering in bulk or advance. “We open at 7 a.m. and usually my Benjamin Moore and PPG reps are texting me by 6 a.m. We’re so appreciative of both of them.” Elaborating, Austin shares: “They both support us, maybe in different ways—their structures are set up a little bit differently—but they have really great support networks with their dealers.” A few years ago, PPG invited A&E to become part of the premier authorized dealer network, which has been hugely beneficial to the team. Being from the PPG world, A&E has been with the Pittsburghbased company since their origin, but Benjamin Moore was a later addition (in 2015 to be exact). “That definitely added a whole other segment of business for us. Because we’re mostly commercial, we have to approach marketing a little bit differently, but they’ve been willing to adapt with us and work with us.” But of all the things going right for A&E, their number one asset is their optimism and tough-as-nails work ethic. While many might boil their success story down to luck, Austin is pretty sure there’s a bit more to it. “We were partially lucky because this is a good market, but also, my parents have been in the paint industry for 30-40 years now, my dad worked at a hardware store out of high school, so having their knowledge and their experience, and all that they’ve passed down to us, it’s so beneficial and it separates us from the other businesses.” While Austin and his siblings have mostly taken over the day-to-day operations, their parents remain “the driving force.” “The philosophy that they have both always talked to us and our employees about is always taking care of the customer, doing the little things, and always looking for ways that you can evolve. As the climate changes and the economy changes, how can you be out in front of that. That’s what we try to do.”

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DAILY MIX | AL LPRO TA LKS

New places & Ne w fa ce s SAY HELLO TO OUR NEWEST MEMBERS! In addition to the warm sunshine, breathtaking views, and stimulating program, highlights from our Spring Show in the Bahamas included meeting some of our newest members. We ordered a Bahama Mama, pulled up a pool lounger, and

got to know some of ALLPRO’s newest members. Read on to find out a little bit more about them, what they’re looking forward to as members of ALLPRO, and their highlights from the Spring Show.

What's the biggest benefit of being an Allpro member? Quick access to the best of the best suppliers.

GALVESTON BAY PAINT & DECORATING, LLC

What's the best piece of business advice you've received? Do it now!

Owners: Art and Kathy Arnold

What was a highlight of the spring show? Several new relationships were made with ALLPRO members.

Location: Webster, Texas (Houston/Galveston Bay Area) Number of locations: One Number of employees: Six In operation since: August 2017

What does your store do better than most? Delivers a value proposition focused on quality.

Describe your team in three words: Intelligent, engaging, and neighborly. What is a 2022 business goal? Improve supply chain continuity.

What's the biggest benefit of being an Allpro member? Networking and learning to be better!

FLANAGAN PAINT Owners: Jay and Jim Donnelly Location: St. Louis, Missouri Number of locations: Four (with two new stores opening in the second quarter) Number of employees: Twenty In operation since: 1950

What's the best piece of business advice you've received? Do what you say and always be learning! What does your store do better than most? "Flanagan Can" is our slogan, and we pride ourselves on not saying NO. What was a highlight of the spring show? Hmm, the beach! No, it was our first Spring Show and I met so many people with similar businesses! The biggest impact was how big ALLPRO really is! Describe your team in three words: Determined, caring, and family. What is a 2022 business goal? Expand our store training and processes!

14 | M ay/J u n e 2 022 | ALLPRO INDEPENDENT

THE PAINT CENTERS

WESTERLY PAINTS

Owners: Aaron and Stacey Keller

Owner: Brandon Donahue

Location: Grand Blanc, Michigan

Location: Westerly, Rhode Island

Number of locations: Five

Number of locations: Two (Westerly, RI & Mystic, CT)

Number of employees: Eighteen

Number of employees: Six

In operation since: 2015

In operation since: 1988

What's the biggest benefit of being an Allpro member? We originally signed up as an ALLPRO member to take advantage of obtaining products for resale at a discount along with the cashback program; however, we quickly realized that we are not just a member, but rather, we are part of a culture of business owners and vendors who work together as a team to help each other out. What's the best piece of business advice you've received? There’s never a right time to do anything so sometimes you have to take a chance. What does your store do better than most? We have five locations now, along with a recognizable brand to run across several communities, and our goal is to help customers and contractors the moment they walk in the door with their paint, supply, referral, or color needs. What was a highlight of the spring show? We certainly could say the highlight was the weather in the Bahamas, but overall, we found the highlight to be connecting with the vendors, learning about new products to offer our customers, and getting to know other business owners. Describe your team in three words: Knowledgeable, efficient, and kind. What is a 2022 business goal? Our goal is to leverage the communities in which we’ve planted a seed by giving back in the form of charity, volunteering, and participation in local events.

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What's the biggest benefit of being an Allpro member? The buying power I get with ALLPRO has been the biggest benefit of being an ALLPRO member. What's the best piece of business advice you've received? The best advice I've received for my business was to join your local chamber of commerce and support your community. What does your store do better than most? The things we do best are color matching and knowing our products. What was a highlight of the spring show? For me, the NextGen lunch was the highlight of the Spring Show. I was able to talk business with people my age and make some friendships that will hopefully last a long time. Describe your team in three words: Hardworking, communicative, and knowledgeable. What is a 2022 business goal? A business goal we have this year is to double the number of our employees.

TO ALL OUR NEW MEMBERS: WE’RE SO HAPPY TO WELCOME YOU ON BOARD AND LOOK FORWARD TO ALL THE MEMORIES AND SUCCESSES WE HAVE YET TO SHARE!

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18 | M ay/J u n e 2 022 | ALLPRO INDEPENDENT

Images: Aubrey James Projects, Alex Karas

INDEPENDENT | B A HA MA S

or the first time in a long time, the ALLPRO family of members, vendors, and dedicated staff gathered on Paradise Island of the Bahamas for the most well attended show the group has ever hosted. The beautiful waters, sunny skies, and white sandy beaches of the tropical locale were rivalled only by the feeling of community, togetherness, and friendship that a week with your partners in paint can bring… plus a plethora of fruity, umbrella-topped libations and delicious fare! May/Ju n e 2022

| ALLPRO INDEPENDENT | 19

One Million Dollar Club

Five Million Dollar Club

breakfast bustling with some new and many familiar faces was the first order of the show. Travel weary attendees caffeinated and fueled up for the frenzy of the show floor packed with promotions and paint paraphernalia while absorbing and celebrating the success of the group as a whole and the individual milestones of their fellow members. Awards and mentions were handed out, photos were captured, and handshakes and high fives were aplenty. The opening address was rife with anticipation to learn where the next shows would be (Dublin!), what’s new (ALLPRO U and the payment portal), and who might be rocking our closing parties in the future (Styx!).

and th e award g oes to. . . ALLPRO recognizes 2021's distinguished members.

Twenty Million Dollar Club

Thirty/Fifty/Sixty/Eighty Million Dollar Club

FIVE MILLION DOLLAR CLUB: Colorworks Clement’s Paint & Decorating

Dick’s Color Center Drive-In Paint Mart HPM Building Supply Hoover Paint Loconsolo Paints Powell Paint Center Inc. Salt Lake Paint & Decorating Sarasota Paint Shilpark Paint TEN MILLION DOLLAR CLUB: Catalina Paint Home Décor Group Reno Paint Mart Standard Paint & Flooring TWENTY MILLION DOLLAR CLUB: Guiry’s Mallory Paint C.R. Wallauer THIRTY MILLION DOLLAR CLUB: Ring’s End FIFTY MILLION DOLLAR CLUB: Ricciardi Bros. SIXTY MILLION DOLLAR CLUB: JC Licht EIGHTY MILLION DOLLAR CLUB: Spectrum Paint

Images: Aubrey James Projects, Alex Karas

Ten Million Dollar Club

ONE MILLION DOLLAR CLUB: 21st Century Paints AAA Paint & Supply American Paint Supplies Big Bear Paint Center Boise Paint & Supply Cole’s Hardware Colorama Paint & Supply Columbia Paint Co Don Smith Paint Company Douglas & Son Inc. Elmont Paint & Design Flanagan Paint & Supply Gainesville Paint Germantown Hardware & Paint Heritage Paint & Decorating Centers Huffman Paint & Wallpaper Ideal Distributors In.SIDE.out Paint Centers Modesto Color Center Paint Outlets Royal Lane Custom Paint Rozar’s Paint Supply Seabrook Paint Company Shenandoah Paint & Decorating Strand’s Inc. The Paint Store Inc. White’s Lumber & Building Supplies

hen people come together for the greater good and pull up their socks to get the job done, great things often happen. ALLPRO purchases finished up a most impressive 25.5% at $1.297 billion, while ALLPRO distribution tracked upwards 18% at $23 million and the ALLPRO private label ascended 27% at $33 million. Recent times certainly haven’t been easy with all the business and personal challenges the pandemic brought and the aftermath of difficulties left in its wake, but as the old saying (and Billy Ocean) says when the going gets tough, the tough get going! And in the ALLPRO family, the tough all mix paint!

At the risk of leaving the big boxes and company stores feeling inadequate with career comparison syndrome (sorry, not sorry) we took a measured look at ALLPRO vs. the Industry and can truly come to appreciate what years of comradery and working together for the group have garnered. ALLPRO 25.5%

Lowe’s 7.6% Home Depot 10.6% Sherwin Williams 7% Ace Hardware 8.7%

May/Ju n e 2022

| ALLPRO INDEPENDENT | 21

Images: Aubrey James Projects

Being of the next generation of any family-owned business is a great source of pride for most families. Passing the paint torch down or across the family tree comes with a vast range of emotion for all parties. Parents and grandparents beam as their years of hard work and perseverance come to fruition in retirement and children flourish and take the reins. For those accepting the torch, it is a huge responsibility that can come with a lot of pressure. The ALLPRO NextGen group functions to bring the young up and comers together to meet, have fun, bounce new ideas around, parlay about all things paint and yes, maybe complain about their parents, too!

ahamian Junkanoo dancers and musicians rolled out the welcome mat with live performances and traditional Bahamian cocktails as ALLPRO guests arrived at a private beach party and feast to close out the show. What could be better than fresh grilled fish and conch salad, mac and cheese, and rice and peas, a dessert buffet not for the faint of heart, live entertainment and 1,200 friends? With bulk buys, show specials, networking, and business brainstorming complete, the night was all about the palm trees and 80 degrees!

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INDEPENDENT | I NV E NTO RY M A NAG E ME N T

INVE N TOR Y M A NA G EM ENT 1 0 1: YOUR STOCKROOM’S HIDDEN COSTS

The pandemic shone a spotlight on the importance of the way we manage our stock. Supply chain shortages made it more difficult to keep product on the shelf, which led to lost sales in some cases. But good inventory management goes so much farther than just maintaining adequate stock and ensuring we’re not running out. While holding onto little inventory can cost you time and customers, holding on to too much can tie up cash and valuable square footage. By optimizing your product flow, you can strike the perfect balance, maximizing your profits and minimizing your losses. Additionally, once your inventory management system is functioning at its peak, it becomes easier to adapt to unforeseen circumstances, understanding right away what steps can be taken to avoid a shortage or overstock.

GOAL

Maintain superior customer service and satisfaction while keeping inventory costs within budget. A reliable balance of service, supply, and demand.

3 COMMON ISSUES IN INVENTORY MANAGEMENT: 1 Not enough control: If you’re waiting until you notice you’re low on stock to place an order, you’re placing that order too late! This can result in lost sales. By evaluating monthly sales of a particular product, you can better anticipate the date of needed replenishment and order accordingly. 2 Not enough teamwork: All team members should be aligned when it comes to inventory goals. That way, if a larger than normal order comes in, the required communication or action can follow to ensure inventory flow will not be disrupted. Sales, purchasing, and finance teams should be working with the same demand forecasts. 3 Not enough space: Even a generously proportioned warehouse can suffer from a lack of space due to disorganization. Whether you’re working with a back room or large-scale storage headquarters, keeping items sorted and accounted for is crucial. Each of the above problems can lead to the following types of (wasted) inventory: • Obsolete inventory • Excess inventory While inventory counts as an asset, it’s an asset that depreciates over time. • Over-handling inventory Improper management leads to losses, even when items are eventually sold. • Too little inventory • Misplaced inventory

REMINDER

On the other end of the spectrum, when inventory is managed effectively, the following benefits occur: Supply & demand are aligned: A lean inventory flow can start to take shape. Productivity increases: Less time is being spent on managing storage, finding misplaced items, or ordering items outside of scheduled shipments. Cash flow is boosted: When excess inventory isn’t sitting on the shelves, you have more cash on hand. Customer service is improved: Correcting inventory errors and stock shortages lead to more reliable service for your customers.

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DON’T BE A HOARDER If your warehouse is holding on to excess stock, your business is bleeding cash and you’re losing out on money that could be adding to your bottom line. Create a system that triggers evaluation after a product has sat in your warehouse for a set maximum amount of time. You can talk to suppliers about a return, create in-store incentives to sell off stock, donate products to a community initiative... just don’t let it collect dust and take up valuable storage space.

STEP ONE: ASSESSMENT Evaluate your current approach to inventory management and how its working for you and your business. Once you have a better idea of your status, you can identify key performance indicators and targets for improvement. Questions to ask yourself: 1. What stock is currently sitting on your shelves? How many days/weeks/months will it last you? How long has it been in stock and what is the total value? 2. Who oversees inventory? Is there a specific individual trained in this area and prepared to lead the rest of the team? 3. What system is currently in place? What tools are you relying on to categorize items and forecast according to demand? 4. Are there any recurrent service issues? Are you finding that you are unable to meet customer demand due to inventory shortages? 5. How are you keeping track of inventory management performance? Do you have pre-determined key performance indicators?

STEP TWO: ACTION

ategorize products and introduce systems that allow for an optimized system of inventory management to take place and C improvements to be made on the fly.

THE ABC METHOD This method offers a simple way of classifying inventory based on the Pareto Principle (80% of your inventory should account for 80% of your company’s usage). Category A: Your bread-and-butter items (70 - 80% of annual usage). You can’t afford to run out of these items. Category B: Approximately 30% of your items which represent 15 – 20% of your annual usage. These are items that should be kept on hand but might sit on the shelf a little longer. Pricing margins should reflect this to ensure profit can carry the cost. Category C: These items are valuable to have from a customer service standpoint, but don’t make a big contribution to your revenue. Sometimes they can represent up to 50% of your total inventory. This percentage should be kept at a minimum.

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| ALLPRO INDEPENDENT | 29

dentify key performance indicators to help measure your current and 2. Ifuture success. Here are a few metrics you can use: Fill Rate will measure the percentage of orders filled within a given period with inventory already in stock. Fill Rate = Orders shipped in full / customer orders placed Service Level Ratio measures the percentage of orders you are filling on time. Service Level = Demand fulfilled on time / total demand Days of Inventory held identifies your efficacy and will help align purchasing, sales, and production teams. Days of inventory = average value of inventory / cost of goods sold x 365 Inventory turnover ratio tells you the number of times inventory has been sold and replaced within a year. Inventory turnover = cost of goods sold / average inventory Inventory accuracy will compare stock on the shelf to what is recorded in your database, measuring the precision of your inventory data. Inventory accuracy = actual inventory count / recorded inventory count Warehouse space utilization ratio tells you how efficiently you are using your stock space and whether it has capacity to take on more storage. Warehouse space utilization = amount of space used / total available space

By using these key performance indicators to guide you, you can work to create targets and track progress. In the process of assessing your current system, you’ll be able to identify gaps between your current methods and other best practices, which can help in the formulation of an action plan.

PLAN  EXECU T E  EVALUAT E  R E V I SE

PRO TIP! Revamping an inventory system can be a daunting task. It might be good to start small with a pilot project before overhauling all at once. This will also give you the chance to test out training tactics, iron out any details, and learn best practices without assuming too much risk.

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THE RUNDOWN: APPOINT A GO-TO INVENTORY MANAGEMENT PROFESSIONAL IN YOUR STORE This individual should be known to the entire organization and should also oversee training company-wide, collecting feedback for improvement, evaluating the efficacy of new efforts, and implementing new changes. IMPLEMENT AN INVENTORY SYSTEM Once the new system is rolled out, new protocols should be followed for a set minimum amount of time before changes are made. Sometimes it takes time for benefits to be seen. PLAN AHEAD BY USING HISTORICAL DATA TO CREATE FORECASTS Lean on the resources and data you already have at your fingertips to extend the reach of your new initiatives. Although last year’s data may be skewed due to pandemic disruptions, historical data is always the best tool when it comes to forecasting. MAINTAIN NEW SYSTEMS BY TRACKING AND MONITORING Don’t expect new software to do all the work for you. To reap the rewards, you’ll need to monitor, evaluate, and maintain new efforts and adjust where needed.

HOW TECH CAN HELP: INVEST IN GOOD INVENTORY MANAGEMENT SOFTWARE From your POS to your warehouse management systems, your data will only be as good as your technology. Adequate programs should provide you all the numbers needed for the algorithms shared above, tracking all relevant inventory transactions in real time. These programs should also be able to give you a picture of what’s been sold (or otherwise committed), and how much is still sitting in your stock. Your warehouse management system should be able to integrate with POS to give a holistic view of the bigger inventory picture. PLAN OUT YOUR PURCHASES Sophisticated digital inventory systems are so advanced, they can make buying suggestions for you based on current stock levels. You’ll be able to plug in minimums and maximums, projected inventory demand, and make estimates accordingly. Remember that while algorithms and technology can help take the guess work out of business, nothing replaces the human touch. Be sure to audit any decisions being made by new software to ensure all relevant factors are being captured or considered. TRACK COMMUNICATIONS WITH SUPPLIERS You can purchase software that keeps track of the proposals, pricing, contracts, and performance of all your suppliers. By closely monitoring these relationships, you can see which suppliers are providing you the most value, accumulate feedback, and determine discounts you may be eligible to receive. Depending on the software, it could potentially be linked to your other data management systems for further automation.

ALLPRO RECOMMENDED: ALLPRO members are turning to technology – software and inventory management systems to streamline and improve their POS and warehouse management. Interested in integrating an ALLPRO-approved POS system to optimize your dayto-day operations and boost your bottom line? Sign on with one of our supplier partners and start enjoying the advantages automating your inventory can provide. AUTOLOGUE COMPUTER SYSTEMS, INC. offers cloud or on-premises computer systems, including SBC Solutions, a Windows-based POS management system with touch screens, graphical user interface, and a SQL relational database. EPICOR (CBC COMPUTER SYSTEMS) is the industry’s only POS software made exclusively for paint and decorating retailers. This specially designed software connects the store’s POS system to manufacturers’ and suppliers’ systems, making it easier for retailers to run their businesses and compete against national chains.

May/Ju n e 2022

| ALLPRO INDEPENDENT | 31

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ALLPRO Weathers the Supply Chain Storm Mitigating challenges placed on members due to the supply chain While the COVID-19 pandemic may be winding down, aftermath in the wake of such a tumultuous time remains. For ALLPRO members, one of the biggest challenges faced during the pandemic was issues with the supply chain. Business for the independent channel was up and supply was low. Supply chain shortages, extreme weather, and production shutdowns resulted in price increases, long lead times, product outages, and rationalization of products. And while members may have weathered the storm, issues sourcing supplies remain. To combat the crisis, ALLPRO has focused on three measures to mitigate the supply chain challenges.

N º1 | A D D IN G SE LECTI VE SUPPLI E R S Prior to the pandemic, ALLPRO had a conservative approach to the number of suppliers for each category, selectively seeking manufacturers that would provide members with a distinct competitive advantage. “Part of the value of ALLPRO is that we’re not a catch-all bucket for every supplier,” Michael Beaudoin, Executive Vice President of ALLPRO, explains. “If you have too many suppliers, it waters that value proposition down. We were always very conservative, but it's a new world, obviously, and more can be better, but it's not without limit.” A couple of years ago, ALLPRO brought in an additional applicator supplier. While Beaudoin says the move was very controversial at the time, it set the stage for what the group would need to do to mitigate future supply shortages. “Earlier in ALLPRO, this may not have happened, but we felt there was enough penetration within the group that perhaps we needed another supplier in that category,” Beaudoin says. While he admits that including an additional supplier made things a little crowded in that category, when the pandemic hit, Beaudoin was glad they were on board.

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Since then, the ALLPRO team, working with the purchasing committee, have carefully selected additional suppliers in many categories to supply members with additional options. “We look to make sure that [the supplier] would be successful in the group,” he explains. “And if we've got the feeling that [the supplier would be a good fit], we champion them - they have a special place here.” Beaudoin encourages members to adapt quickly to new suppliers and products, being willing and open minded to trying something new when optimal products aren’t available.

A N A L L P RO E X A MP L E “A great example of that would be the safety category. We brought in GVS to help augment the supply when other suppliers were not shipping. It gives [members] another option to get respirators and masks.”

N º2 | A DVO CATIN G FO R PRO D U CT S HA R E A critical benefit ALLPRO provides its members is lobbying at the very highest level to ensure the group receives its fair share of available product relative to other channels. While some suppliers sell a vast volume of their products to the independent channel, other larger suppliers sell to multiple channels, including big box stores, and may decide to send a majority of their product to the independent’s competitor. ALLPRO’s job is to actively support the independent retailer, ensuring member retailers receive as much product as possible.

A N A L L P RO E X A MP L E According to Beaudoin, major manufacturers sell to multiple channels, including big box stores like Home Depot and Lowe’s. “What [ALLPRO] is trying to do is advocate at the highest levels to make sure that we get our proportion of what they have. And it’s working,” he confirms, adding that every supplier relationship requires a different amount of lobbying. “I look at each relationship and situation with the suppliers individually, and engage in a way that will give us our share of those limited products.”

May/Ju n e 2022

| ALLPRO INDEPENDENT | 37

N º3 | U TIL IZ ING WAR E H OUSE S & FIN A N CI AL R E SOURCE S ALLPRO’s distribution centers, including the newest location in Shawnee, Kansas, positions the group to compete at a very high level and place extremely large orders, so that product is always available for members. “When there is a scarce amount of product, we try to compete with other channels to buy as much as we can to make it available to our members,” Beaudoin says. “And we have a place to put it.” The distribution centers house merchandise ALLPRO purchases directly from manufacturers, as well as ALLPRO branded products, including the suppliers that make up the ALLPRO brand. “Part of what our distribution network does is allow the group to engage suppliers as an entity, as a 2,000-store chain, to make large purchases,” Beaudoin says. “Having these distribution centers allows us to buy from every region and redistribute to the entire group.” In response to the supply chain challenges, Beaudoin says ALLPRO will continue to utilize their warehouses and financial resources for opportunity buys and purchasing merchandise and product in bulk, giving members a distinct competitive advantage. “We can buy much larger quantities of products, save significantly and redistribute that savings to our members.”

AN AL LP RO EX AM P LE “Traffic paint is very hard to buy right now,” Beaudoin explains. “We just purchased two full trucks. There’s not a lot of members who can buy $200,000-$300,000 worth of traffic paint at one time. We did, and we sold it all in a day. So now we're buying more trucks of it. So, we're able to go out there and utilize our financial resources, our warehouses, and go buy trucks of products and make sure our members get them.”

38 | M ay/J u n e 2 022 | ALLPRO INDEPENDENT

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INDEPENDENT | NE XTG E N 1. HER PAINT JOURNEY HAS HAD TWISTS & TURNS Rachel may have started working at General Paints Group’s (GPG) Celbridge shop during summer breaks - stocking shelves, tinting paint, and eventually serving customers, but her journey to becoming the Managing Director of the family business was anything but straight forward. Following high school graduation, Rachel studied civil engineering in university before moving to the United States to earn a master’s in business. She lived and worked in Glacier National Park, caught catfish during an internship in North Carolina, and then took a turn in the technology sector in San Francisco, California. In 2016, Rachel moved home to Ireland to work alongside her dad. Two years ago, her dad retired, and Rachel took over the management reins. “A big part of my decision to move home and join GPG was the chance to work closely with my father, Kevin. Talking about ideas over a coffee in the office and having big debates is a lot of fun.” 2. SHE’S PLANNING A PAINT STORE OF THE FUTURE One of Rachel’s current goals is developing a paint store of the future, an idea set in motion a few years ago and a project she plans to see come to fruition in 2024.

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“Our head office and original paint store is in a historic famine workhouse building dating back to 1841. We want to have a paint store at the center, with an interior design studio, restaurant, and event space surrounding it. I am excited about what we could do with the event space - we plan to use it to make paint retailing more experiential with homeowners, contractors, & interior designer events, art exhibits, etc.” 3. SHE’S A JET SETTER, SEA SWIMMER, & ADVENTURE SEEKER When she’s not managing GPG’s store strategy and nurturing the company culture, you can find Rachel swimming in the sea, climbing a mountain, or backpacking through another country. The outdoor enthusiast lives beside the sea in Dublin and counts cold water swimming without a wetsuit as one of her personal pursuits. “If you’re not used to it, it’s really cold, but you feel a sense of euphoria afterwards.”

Get To Know Globe-Trotting, Forward-Thinking, NextGen Committee Member, Rachel O’Connor Rachel O’Connor’s Irish accent and optimistic outlook isn’t the only thing that makes her an ideal contributor to ALLPRO’s NextGen committee. As a third-generation paint retailer hailing from County Kildare, Ireland, Rachel is eager to make other young retailers and newcomers more comfortable at events and shows and join with like-minded members to push the independent paint retail envelope with innovative ideas and store strategies. Here are five other things you might not know about our NextGen committee member from across the pond.

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4. PEOPLE ARE HER FAVORITE PART OF THE PAINT BUSINESS Rachel credits her love of the industry to the people - customers, suppliers, colleagues, and friends she’s met through groups and associations, especially ALLPRO. “The paint industry seems to attract a lovely bunch of people. I also like that people are very open to sharing best practices with each other. When COVID19 first came along, we had Zoom [meetings] with Greek, Australian, Canadian, and US paint companies - several of them ALLPRO members – to share learnings about how they were coping with the pandemic.” 5. SHE IDENTIFIES WITH NEXTGEN NEWCOMERS Six years ago, Rachel attended her first ALLPRO show on her own. And in many ways, she still feels new to the industry, which is why she’s passionate about bringing newcomers into the group and ensuring they have a good experience. “I think when you’re young and you’re in business, going to shows and coming back with an idea almost helps your credibility and confidence.”

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Piano Paint for the Stars Dua Lipa is levitating for more than just moonlight and starlight. The superstar singer also has glitter in her eyes for Spectrum Paint.

The team at Spectrum Paint was pleased to make a pre-cat gloss lacquer (Axalta 4009) for their friends at BOK Center in Tulsa, Oklahoma, ahead of a big weekend of concerts that included Grammy award-winning artists Dua Lipa and Justin Bieber. The color, coined Moorland Heather (PPG1251-5), transformed the piano into a saturated shade of dusty rose purple with a peony undertone. The dramatic color on the instrument was elevated with a balloon installation in various hues. We’re hallucinating for all things sparkly and Spectrum! Congratulations to Spectrum Paint for a stunning project fit for the stars.

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