Leaders in the sale of quality FCA Mopar Parts.
July - August 2020
Also In This Issue From the Desk of MMG President Susan McDaniel “Adjustment”.................. 2 NADA Ought to Think Virtual for 2021 Show Now ........................................... 3 Q&A: A Look at How Dealers Can Step Up Sales of OE Parts to Independents ......4-5 Consistent Pricing, Better Processes Build Trust ................................................... 5 The View from My Office with Kat Monteiro .............................................6-7 Remote Work is Changing How Productivity is Measured........................8-9 Supporting Vendors ............................ 10-11 Elite Extra ............................................ 12-15 Katzkin Leather ................................... 16-17 OEConnection ...................................... 18-19 Katzkin Leather ......................................... 20 CDK Global ................................................ 21 OEConnection ............................................ 22 CDK Global ................................................ 23 Reynolds & Reynolds ................................ 24 PSX - Parts Sales Xcellerator ................. 25 Wholesale Parts Pro/
Pandemic Continues... NADA 2021 - Will the Show Go On?
NiTS Solutions .................................... 26-27 Autobody News .......................................... 28 Reynolds & Reynolds ................................ 29 10 Missions Media .............................. 30-31 AER Manufacturing ............................ 32-33 UPS .............................................................. 34 Snap-On Business Solutions .................... 35 The 7 Hallmarks of Good Leadership in the Pandemic ................................... 36-39 On the Lighter Side: Canadian Police Discover 40 Stolen Cars in Shipping Container .................................................... 39 MMG Officers/Committees ................... 40
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From the Desk of MMG President Susan McDaniel Adjustment Hello Everyone! I hope you are managing to stay safe and well during these trying mes. The one word that really s cks out in my mind in all aspects of life right now is “ADJUSTMENT”. We have all had to make adjustments in our personal lives, socially, in business with staffing and lay-offs, economically, and the way we think in general. The people we do business with have had to do so as well. We can no longer conduct our lives or our businesses the way we once did. Albert Einstein once said that the measure of intelligence is the ability to change. We have no choice. We must change. It is unproduc ve to sit around and complain about the way things once were; our world has forever changed. Instead, it is paramount that…. • We focus on progression • We don’t have to solve all of our problems TODAY • When you feel like qui ng – remember why you started • We keep calm – we are all in the same boat • Some mes our “stop doing” list needs to be bigger than our “to do list” Instead of our usual planning of vendor trips this me of year, we will be planning to do virtual mee ngs and Zooms! It won’t be the same as our exci ng adventures that we usually have when we all get together but we will make the most of it! We have all become a li le more “tech savvy” and that is one good thing that has come out of all of this! We have cau ously started planning our January NADA trip to New Orleans and I am so excited to reconnect with everyone and hear about your challenges and how you have overcome all of them. This mee ng will be no different than the rest, in that, our group always finds some way to make the best out of every situa on. The ideas, topics and discussions will be more colorful than ever, I’m sure. We do not know what is on the other side of this storm – PROCEED * BELIEVE * DON’T STOP Un l We Meet Again,
Susan McDaniel
Susan McDaniel - susan@billluke.com - 602.336.1557
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MMG Tentatively Plans for NADA 2021 As we approach January 2021, we are cau ously making plans for our 29th Annual Mopar Masters Guild Mee ng in New Orleans, Louisiana. The ar cle below rings a pessimis c tone for the event but we s ll need to be ready. We remain op mis c but we have no control over these decisions. A survey that was sent out to MMG members last month confirmed that 42 Parts & Service Managers would be interested in a ending our annual event if it was held in 2021. We will keep everyone as informed as possible over the next few days and weeks. We are hoping for a posive result.
NADA Ought to Think Virtual for 2021 Show Now The 2021 NADA Show must go on — but it may be Ɵme to declare it virtual only. As the coronavirus con nues to spread, Na onal Automobile Dealers Associa on leaders are weighing whether they can safely gather Jan. 21-24 in New Orleans. It isn’t looking good. In recent weeks, more in-person industry events have been canceled — including the CES tech conference set for a scant 15 days before the NADA Show. Even the event NADA leaders had been watching for how to safely stage a conference is now off. It seems best to embrace reality now and use the next five-plus months to put together a robust online event. NADA says it is working on a con ngency plan should the in-person conven on be canceled. But it’s hard to build out an online program that breaks new ground while s ll planning a conven onal gathering. When the associa on in June commi ed to an in-person event, NADA Chairman Rhe Ricart said the pandemic has added to the importance of the show as “there has never been a more complicated me to run your business.” It’s a good point. But the extraordinary circumstances the industry is facing also make large gatherings dangerous. Will dealers, automakers and vendors really want to send employees to an event that normally has a endees grouping shoulder to shoulder, crowding the show floor and frequen ng packed restaurants and bars? Many companies have travel restric ons in place that are likely to roll into next year. NADA has recognized the concern, already outlining on its conven on website measures intended to reduce risk such as decreased a endance, mandatory wearing of face masks in the conven on center and wider aisles as part of a spaced-out show floor. The American Truck Dealers, a division of NADA, already has announced its annual show will not be held in 2021. The conven on is NADA’s biggest annual moneymaker. A virtual event no doubt will mean lower revenue. But the associa on has a he y bank balance — $253.5 million in net assets at the end of 2018, according to public filings. NADA’s expo/conven on revenue for 2018 was $18.5 million. For the safety of everyone who would attend, NADA can afford to take a year online. Source: www.autonews.com
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Q&A: A Look at How Dealers Can Step Up Sales of OE Parts to Independent Shops There are great opportuni es for automakers and their dealers in the a ermarket for automo ve mechanical parts. The total size of the market in the U.S. is $26 billion, and it is expected to increase 1.8 percent annually to $28 billion in 2025. But original equipment parts have only a 36 percent market share. In February, Carlisle & Co., along with automo ve data supplier Motor, surveyed independent repair facili es, or IRFs, across the U.S. to be er understand their decision-making when buying original equipment parts. (Read a white paper on the survey at autonews.com/genuineparts.)
Harry Hollenberg, managing director at Carlisle
Sales of genuine OE parts to these independent shops through dealer wholesaling generally represent about 20 to 25 percent of such parts sales. Collision parts represent about 80 percent of that amount and mechanical parts the other 20 percent. Harry Hollenberg, 55, managing director at Carlisle, discussed some of the report’s findings with Editor Dan Shine. Here are edited excerpts. Q: How great is the demand for original equipment parts at independent repair faciliƟes? A:IRFs tell us that only 22 percent of their total parts sales are OE parts they purchased from OE dealers. Interestingly, another 21 percent of their sales are represented by “OE parts purchased from nondealers.” We have some theories on where those par cular sales are coming from, but we’ll have to dig more deeply on the next survey to test those theories. While IRFs indicate they offer OE parts to their customers about 50 percent of the me, they also indicate that customers only ask directly for OE parts about 20 percent of the me. Clearly, automo ve OEMs and dealers need to do a be er job of crea ng demand for their parts by selling the quality of genuine OE parts. Q: Do independent shops consider genuine original equipment parts to be beƩer than non-OE parts? A: It depends on the criteria. IRFs do indicate that OE parts are be er than non-OE parts when it comes to quality and fit and genera ng customer sa sfac on. There are a few criteria where IRFs see OE parts roughly the same as non-OE parts. These include part availability, warranty coverage and technical support. Finally, IRFs report a preference for non-OE parts when it comes to speed of delivery, price and margin. Q: How can dealers sell more OE parts into the independent channel? A: Of course, price will always be an issue. There is a premium for OE parts, so anything to be more compe ve on price would help. But beyond price, there are addi onal steps that OE dealers can take. The first is delivery. OE dealers drama cally overes mate how long IRFs are willing to wait for a delivery. Among our IRF survey respondents, the median maximum order-to-delivery response me for a mechanical maintenance part is about one hour. However, when we asked dealers how long their IRF customers were willing to wait for a similar delivery, their median response me was 12 hours. Clearly, there’s a huge mismatch there. Q: What improvements are needed from dealers regarding sales calls and online parts opƟons? A: IRFs told us that they receive an average of 19 sales calls annually from retailers they purchase parts from. Conversely, nearby dealers are only making about four sales calls annually. It’s hard to get the sale when you’re not even asking for it. Further, IRFs indicate that when they search online to iden fy which part to order for a par cular vehicle, they only receive an OE part op on about 40 percent of the me.
Continued on Page 5
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Continued from Page 4 While this is more an OEM than a dealer issue, there is obviously a need for a comprehensive online OE catalog to more easily help to get OE part op ons in front of IRFs during the ordering process. Par cularly due to COVID, ecommerce is more important than ever to sell to these IRFs. Q: What surprised you from the survey? A: While there were a number of findings that I found interes ng, I was surprised by the lack of interest IRFs had in “one-stop shopping.” I know that a number of companies have been trying to aggregate ordering and delivery of parts to allow IRFs to more easily order required parts. Yet approximately two-thirds of IRFs said they’d prefer to make a separate call/order for each part if that was the only way to maximize price, quality and availability. Of course, one-stop shopping would be great if you could do that and s ll get the lowest price, the best quality and the fastest availability. But in terms of sacrificing even a li le bit on price, quality and availability to support one-stop shopping — there seemed to be very li le support for that. Source: www.autonews.com
Consistent Pricing, Better Processes Build Trust During the recent business downturn, service department officials at Hansel Auto Group in California had me to take a deeper dive into the capabili es of a Dynatron So ware pla orm, purchased late last year to ferret out overlooked business opportuni es. One of the revela ons: Pa erns of inconsistent pricing for the same kinds of work, such as oil changes, at the auto group’s nine roo ops in Petaluma and Santa Rosa north of San Francisco. Elimina ng those discrepancies, as well as enhanced training on processes for service advisers, could result in six-figure revenue increases at each store, says Michael Weldon, director of fixed ops. Consistent pricing — both internally and compared with prices charged by independent shops — affects more than just profitability. It also hurts credibility, Weldon says, if customers compare prices. “The COVID-19-related downme afforded us the opportunity to circle back and look at everything we’ve purchased and our processes,” Weldon says. “We’ve purchased a ton of computer products and driveway aids over the years.” At many shops, some products get pushed aside. “So like a kid who has too many toys, we took things out to look at them again,” he says. “No one looked at that capability before [in the Dynatron pla orm]. I’m not taking any pride in the fact that we’re first doing it now… it’s what every business should be doing all the me. “But when a pipe is always carrying plenty of water, you don’t worry as much about holes in the pipe.” The so ware also is helping service managers iden fy inconsistencies in service-adviser presenta ons. For example, service advisers tend to stray from the company’s walk-around process when things get hec c, but a training component in the Dynatron system is helping to correct that, Weldon says. “We’re trying to get them to slow down,” he says. “It’s important for our writers to do a thorough walk-around with customers — build a rela onship so they’re more at ease. “That way they don’t feel like you’re trying to sell them something when you offer service recommenda ons or repairs.” Overall, the data analysis and the training component provided by the Dynatron pla orm now has service managers “engaging in their businesses, not just running them,” Weldon says. “They’re doing an excep onal job. “COVID-19 has created a terrible situa on, but it’s also provided a great opportunity to concentrate be er on what we do best.” Source: www.autonews.com
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The View From My Office
With Kat Monteiro
Well here we are already in the midst of summer. How is it already the middle of August? Fall will be here before we know it. For some with children, summer is over and they are hopefully on their way back to school or college. Of course with COVID s ll running rapid many kids are not able to go back to school on campus and are instead doing virtual learning from home. Many students with dreams of heading off to their University are are instead doing community college or just out trying to find a job. There are s ll many people out of work with businesses s ll shut down. Here in California, restaurants can only serve customers if they have outside sea ng or they can only do “take out”. Hopefully things will get be er in the near future and we will be thankful that we made it through to the other side. In the mean me, business at the dealership is great! Selling lots of parts, people are coming in to service their cars, and the sales floor has been selling cars. I am thankful to be a part of Jack Powell CDJR, and thankful that our store has held up during yet another crisis. My family did finally get away for a bit this summer. A er 2 different trips to Mexico had been canceled we finally made it up to Northern California to spend some me at our getaway house on the Mendocino Coast. This is our happy place. A place where one can unwind and decompress. We have no cable TV and we just recently were able to get cell phone service so that is the only internet available. We do have a DVD player and a very large variety of movies to watch. But I have to say that the whole week we were there we did not watch one movie! We spent the evenings playing games and working on a puzzle that we pre y much gave up on! The days were spent enjoying the cool coastal weather, Rick worked many hours in the yard - some would say that is not relaxing - but for him it is. He has the energy to do it here, where he is not working a 10 hour day at his job first. We were not able to go in and eat at some of our favorite restaurants due to being closed down for COVID, and we were not able to go across the street to the Albion River Inn for Scotch tas ngs, but we were able to eat by the harbour one day, and we had plenty of good food to cook at home. Rick and Terra went out and played golf 3 days at the Li le River Golf Course. (Marvin Windham and Gerry Oakes will remember this course). The days up there consist of being lulled to sleep at night with the sound of the fog horn blowing its deep horn for any boats who might be coming into the harbour, waking up and drinking coffee while looking out at the ocean and watching the boats leave the harbour Continued on Page 7
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Continued from Page 6 for a day of fishing at sea; driving into town taking all the side roads because you are not in a hurry, going to the beach and looking for sea glass, and there is always a trip to Noyo harbour to buy fresh dungeness crab for dinner! It’s been a real pleasure to have shared our li le piece of heaven on earth with some of our Mopar friends over the years. We have made it a pre-trip to the San Francisco NADA conven on. Hopefully we can plan more trips with our Mopar group in the future! We call it our own personal Lifestyles trip! Rick even makes up a travel agenda! So much fun. So that pre y much sums up The View From My Office for the past couple of months! I am s ll at home and not out visi ng customers so I have no news from the field. I do know I miss all of you! I won’t even get to see many of the MOPAR people and reps this year since SEMA and APPEX has been canceled. Also, with not having WD mee ng, I will miss seeing Doug Johnson and visi ng the Katzkin booth on the show floor and picking up the new cow, and no Katzkin party. I guess it is a wait and see regarding NADA in January. All I know is that Mark Beaton needs to organize a mee ng somewhere when all this is over so we can all see each other! Till next me, stay safe and stay healthy.
Kat Monteiro The following is a testamonial from Dealer Principal Jack Powell - Jack Powell CJD Rick and Kat I really enjoyed this month’s issue (May-June 2020) of the Mopar Masters Guild Magazine, but especially, as usual, reading the column “the view from my office “. Your perspec ve and sen ments are so well expressed and undoubtedly shared by all who work in our business. You are very ar culate in your descrip ons about the feelings that we all have like going to the grocery store. When I think of all the years, and all the contribu ons you and your family have made to my families Dealership I can’t help but be very proud and grateful. Sincerely, Jack-Jack Powell, Jr., President Jack Powell Chrysler-Jeep-Dodge 1625 Auto Park Way Escondido, CA 92029-2093 (760) 745-2880 www.jackpowell.com
The View From My Office
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Remote Work is Changing How Productivity is Measured
Companies are geƫng a reality check about how work gets done. In March 2020, the largest “work-from-home” experiment in history began. The moment en re companies moved their workforces remote, business owners and employees alike both started to realize new reali es about their jobs. For years, people had been told, “It’s essen al for you to be in the office,” only to suddenly realize that being in the office wasn’t so essen al a er all. Zoom calls easily replaced dozens of weekly in-person mee ngs. Manual tasks such as filling out paperwork suddenly couldn’t be performed the same way, forcing companies to accelerate their digital transforma on efforts. Processes that seemed to work fine in a physical office space suddenly showed how dated and inefficient they were. And every execu ve or manager’s fears of remote employees doing nothing but watching Ne lix and playing Xbox all day at home instead of working were eased. Companies all over the world have realized that working from home is not only more efficient but more suitable for the wants and needs of today’s workers. According to one company interviewed by Forbes, as well as research by Harvard Business Review, working from home boosts company-wide produc vity—it doesn’t squander it. Life a er COVID-19 for businesses will never be the same. Here are the two big changes we can expect to see moving forward. BUSINESSES WILL EMBRACE FLEXIBILITY Thirty years ago, 10 years ago, even 5 years ago, it wasn’t exactly “professional” for you to take a call with a client or customer if you weren’t “in the office.” Continued on Page 9
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Continued from Page 8 In the past few years though, and especially the past few months, it has now become culturally acceptable to be more honest and transparent about your personal life as an employee or company leader—so long as it doesn’t interfere with the quality of your servicing the company and/or its clients. For example, during the pandemic and needing to work from home, it has become increasingly common for a dog to bark or to hear a screaming kid for a second or two on a conference call. But that doesn’t mean the client or customer is immediately going to say, “This is so unprofessional. I want to cancel my account.” If anything, they’re going to say something like, “My dog was barking like crazy this morning. I know the feeling.” We are moving more and more into a world where taking calls at home, in the car, while dropping the kids off at daycare, etc., is becoming increasingly common. It’s no longer taboo to acknowledge that we have lives outside of work (which hasn’t always been the case), or that we have appointments or other commitments throughout the workday. Furthermore, employees value not needing to “hide” or try to get around company policies just to live their lives. They don’t want to have to request me off just to run to the doctor in the middle of the a ernoon. They want the company to trust them to manage their own schedule and get their work done before and a er their appointment. Work-life balance is a term that has long been used, but it focuses on the separa on of work and life. Today and moving forward, it’s all about work-life integra on. AUTOMATION WILL INCREASINGLY BE ESSENTIAL Produc vity going up by working from home is one thing. But automa on across en re organiza ons is en rely another. Many businesses didn’t realize how inefficient they were being un l the pandemic hit. The unfortunate consequence, of course, is that a lot of people have lost, and may con nue to lose, their jobs due to the economic impact of the pandemic. With fewer people, manual tasks must be replaced by automa on. Help desks will con nue to make up for lost personnel with self-service through portals, virtual agents, and other innovaons. Combine automa on with working from home, and you have employees ge ng more done in less me (meaning your workforce is more efficient, and you need fewer employees to perform the same number of tasks), and overhead is eliminated (or reduced). In business automa on, there’s this concept called “work management”—it’s the process of breaking down what the final objec ve is, what needs to be produced, and then managing all the tasks that go along with producing that end result. For example, we go through this process with our enterprise clients at Cherwell, helping them reduce inefficiencies in their businesses by automa ng certain processes and get to that end result faster and more effec vely. Right now, during the COVID-19 pandemic, this is precisely what company leaders are examining on a daily basis. They are being forced to examine all their different internal processes and deeply ques on how they can produce the same results as before, but faster, more efficiently, and with a lower headcount. And as these businesses see improvements from automa ng one process, they will want to con nue automating more and more in the future. Source: www.FenderBender.com - Ar cle by Ma Klassen
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Our Supporting Vendors: Support those who support you.
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Our Supporting Vendors: The exchange of information by like sized dealers in a non-competitive environment.
Support those who support you.
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A PRODUCT OF APPLIED DATA CONSULTANTS
7 Powerful Tips to Reduce Last Mile Delivery Costs
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7 POWERFUL TIPS TO REDUCE LAST MILE DELIVERY COSTS Quick, safe, and efficient delivery are at the heart of every company today with customer satisfaction being its primary driver. However, increased demand for delivery has brought increased delivery costs. According to Business Insider, “companies are currently faced with last mile delivery expenses, posing a challenge for their revenue streams.” Despite improved logistics, costs dealing with storage, labor, idling, and fuel still experience constant surges. So how can your company reduce last mile delivery costs while meeting demand and providing exceptional customer experience? We have compiled a powerful list of tips on how to keep those costs in check without sacrificing customer needs.
Provide Order and Route Optimization Reducing your last mile delivery costs starts with how you structure your orders. With the increased demand, companies often face challenges in identifying orders with the same characteristics. These include those with the same delivery locations, similar delivery times and speeds. Adopting software with route optimization can help with this. By assigning groups to your orders, you are assured of fast and efficient delivery. Additionally, when service or delivery windows are part of the delivery equation, it is important to be able to organize and route properly to meet the indicated time windows. Routes can be built to meet time windowed deliveries in the most optimal order to ensure that all deliveries are completed when the customer needs them to be.
Automate Route Planning Many dispatching software solutions can route and track, but there are also advanced solutions that provide the ability to auto-route and auto-suggest routes. Routes can be auto-created in the most optimal order based upon user-defined parameters, including employing specific drivers or vehicle types, specified start and end times, and the desired number of routes. Orders can be auto-suggested to an already active run in order to maximize routes in progress. Automated dispatching assists the dispatcher by reducing the time it takes to review routes and think through possible options.
A PRODUCT OF APPLIED DATA CONSULTANTS
www.EliteEXTRA.com | 1.888.484.8729
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Use GPS-Enabled Tracking Software Information is a crucial part of reducing last mile delivery costs. Getting real-time delivery data will help you evaluate aspects such as the duration of delivery, the number of idle stops, and the successful deliveries. But doing this can only be accomplished by keeping track of your delivery process. With GPS-enabled software, you get accurate information on where your sources of delay lie. This helps you get the necessary countermeasures, allowing for collaboration between your drivers and your company.
Establish Scheduled Runs Auto-replenishment, or scheduled runs, consider a customer’s frequency of product consumption, which comes in handy in establishing a structured mode of delivery. Instead of on-demand orders that come with increased shipping costs, auto-replenishment orders are cheaper to ship. Invest in delivery software that gives you the option to forecast your customers’ demand rates. With such a tool, you can take advantage of your driver’s delivery route plans and load products based on customer data. Your customers get their products on time while allowing you to save on storage and labor costs. Advanced dispatching software should allow a customer to set up their scheduled routes so that they are auto-created at the time of dispatch. This saves the dispatcher and manager immense amounts of time while also increasing the efficiency of the operation.
Provide Safe and Contact-Free Deliveries Through an advanced dispatch solution, photos capturing the condition and location of delivered or serviced products can easily be obtained using a mobile application on a driver’s or technician’s device. Additionally, these images can be generated on a proof of delivery or service document and automatically sent to customers after an order is completed. Customers now expect this service, and taking a photo of the delivery provides proof and condition of the delivery.
A PRODUCT OF APPLIED DATA CONSULTANTS
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Provide Additional Delivery Options Creating multiple delivery options, such as crowdsourced drivers or on-demand couriers can help you cut down on last mile delivery expenses such as failed orders and refund costs. A massive 73% of customers would prefer if they had more delivery options to choose from rather than only same-day deliveries. Provide more options that cater to different needs of speed, price delivery, time-slots, and convenient pick-up locations to increase customer satisfaction.
Offer Real-Time Updates to Customers Customers expect to be in the know of everything that is happening with their product shipment. Keeping them informed means providing real-time updates from when their delivery gets packed to the minute it is shipped. The only way you can make this happen is by adopting a unified communication platform that links your site, drivers, and customers. Delivery software that provides updates about your customers’ deliveries is what you need. With real-time notifications, customers know the exact time of product delivery. It helps to reduce failed deliveries, another last mile delivery cost that creates ripple effects in labor and fuel costs. Advanced dispatch removes the headache of “how” to accomplish this by providing real-time tracking to customers via text or email. Not only do the alerts and tracking give customers insight into exactly when their product will be delivered or what time a service will occur, but it also frees up time spent by sales and counter staff answering questions about estimated delivery or service times.
Conclusion Last mile delivery is often the most expensive stage in the delivery process. Getting it right can mean securing more loyal customers and registering significant increases in your revenue. Tap into the right software to enjoy the benefits of a convenient and affordable delivery.
About Elite EXTRA Elite EXTRA, a product of Applied Data Consultants, is an advanced dispatch management tool that provides cutting-edge dispatch, routing, and tracking services globally. With over 25 years of innovation, experience, and a large base of customers who trust us as partners to power their deliveries and service technicians, the software allows clients to create optimized routes quickly, dispatch to their drivers, and track them all in real-time. For more information, visit www.eliteextra.com.
A PRODUCT OF APPLIED DATA CONSULTANTS
www.EliteEXTRA.com | 1.888.484.8729
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┬й 20 2020 20 CDK CDK Globa Global,l, LLC LLC / CDK Global is a registered trad adema mark of o CDK Glo l bal, LLC. 20-908 9 5
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NEED TO SELL YOUR
OEM PARTS ONLINE?
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)SрибRS@QSRриб VHSGрибBTRSNLDQ @SSDMSHNM 3S@BDXриб#
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=SY EP[E]W [ERX ]SYV GYWXSQIVW XS FI LETT] [MXL ]SYV WIVZMGI %RH ]SY [ERX ]SYV '7- WGSVIW XS VI╞╜IGX MX The CDK Service solution helps achieve both with a powerful tablet interface that lets you greet customers in the lane with their vehicle history in hand. Once servicing is underway, use email and text alerts, instant messaging, and an easy-to-read tracking dashboard to give customers up-to-the minute updates. So theyтАЩre never in the dark. And your CSI scores are never out of whack.
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SELF-SERVICE
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July - August 2020
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ADVERTISE WHERE IT COUNTS FENDERBENDER.COM / AUGUST 2020
PAINT BOOTH MUST-HAVES PAGE 75
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Strategies & Inspir Inspiration irrra a tio ttion i on uc uc cces cc c cess ce ess ss for Collision Repair S Success
Stay Involved Ask Doug Martin the key to continued success at Martin’s Body Shop and he’ll tell you it boils down to staying connected to the industry.
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Industry Leader Jake Sorensen’s federally accredited apprenticeship program has helped groom future industry talent.
The shops building a nextgeneration talent pipeline
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July - August 2020
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July - August 2020
The 7 Hallmarks of Good Leadership in the Pandemic
Be honest. Take responsibility. Show compassion. Good leadership can be a challenge in the best of mes. But amid an unprecedented pandemic and economic crisis, even the best bosses are struggling with how to navigate turbulent waters. Robert I. Su on and Hayagreeva “Huggy” Rao know all about good bosses. For their 2014 book, Scaling Up Excellence, the two Stanford Graduate School of Business organiza onal behavior professors spent seven years researching how exemplary leaders build on successful performance as organiza ons grow. They have also examined how dozens of organiza ons, including JetBlue, Ne lix, Home Depot, and the Atlanta public schools, have dealt with difficult mes, ranging from natural disasters to recessions to ethics scandals. In a Stanford webinar that drew in part on their recent ar cle in the McKinsey Quarterly, Su on and Rao shared the hallmarks of great leadership during tough mes. As layoffs and pay cuts proliferate, these are their ps for being a good boss during a crisis.
DON’T PASS THE BUCK Leaders love to announce record earnings and awards, but most are loath to share bad news. You may be tempted to ask subordinates to deliver nega ve informa on, but as venture capitalist Michael Dearing has said, “There is a difference between what you do and how you do it.” Continued on Page 37
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Continued from Page 36 In late March, electric scooter company Bird le it to an anonymous execu ve in a two-minute Zoom call to inform 30% of the staff that they would lose their jobs. Workers had one hour’s no ce to join the call, and those who missed it learned they were laid off when they couldn’t access email. A counterexample comes from an April announcement from Henry Ward, CEO of the so ware firm Carta, to the 161 employees he was le ng go: “If today is your last day, there is only one person to blame and it is me.” Being a good boss in a crisis means not only making hard decisions—o en quickly and with limited informaon—but also taking responsibility for them.
SHOW COMPASSION From Gallup to Google, extensive research shows that a boss who expresses concern for employees’ lives leads to workers who perform be er, are more commi ed to their roles, and are more sa sfied. Showing compassion doesn’t mean projec ng insecurity or a lack of control. Instead, communicate to employees that you understand the situa on is painful and the effect it has on them and their families. Don’t gloss over difficul es to project that “everything is just fine.” Give a realis c assessment of what’s happening, couched in empathy and understanding. Airbnb CEO Brian Chesky demonstrated compassion, through his tone and ac ons, in a May 5 memo announcing the company was laying off 25% of its staff. “I have a deep feeling of love for all of you,” he wrote. “I am truly sorry. Please know this is not your fault.” Chesky also offered generous benefits for those leaving, including reorien ng most of the company’s recruiters to help those laid off find new jobs.
OFFER AS MUCH PREDICTABILITY AS POSSIBLE These days, you may not be able to promise much certainty to employees. But you can offer pockets of safety. Psychologist Mar n Seligman’s classic studies on learned helplessness show that when people feel powerless in the face of stressful events, they suffer physically and mentally. He concluded that the London Blitz was less emo onally disrup ve than other German bombings during World War II because the country’s reliable warning system could alert residents to danger in advance. More recently, researchers Erik Gonzalez-Mulé and Bethany S. Cockburn found that employees in highly stressful jobs where they felt li le control were more likely to die or have health problems over a 7-year period than those who had more control at work. As a leader, offer as much predictability and control as you can. Telling employees that their jobs are safe for the next month prevents them from waking up every day wondering if they’ll be laid off. If you’re s ll weighing your op ons, tell staff when you will update them. And if no layoffs are coming, don’t assume workers know that. In this climate of fear, make it clear.
WATCH YOUR TELLS An execu ve vice president once told Su on that, during the 2008 recession, his assistant asked when layoffs were coming. The execu ve was shocked—the company had decided on job cuts but not announced them. Continued on Page 38
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Continued from Page37 “It’s an interes ng-shoes day for you, so we knew something was off,” the assistant told him. It turned out the execu ve had a tell: When he was stressed or upset, he’d look at people’s shoes rather than make eye contact. Stanford biology professor Robert Sapolsky has noted that the average member of a baboon troop looks at the alpha male every 20 to 30 seconds. Such asymmetrical a en on is a hallmark of human groups, too. If you are in charge, don’t forget that your employees are watching your every move and word, especially during frightening mes.
CREATE COMMUNITY FROM AFAR Building successful teams is hard enough under normal condi ons—managing through a computer screen can be even more challenging. Most organiza ons were not prepared for a sudden shi to remote work. Tsedal Neeley, a professor at Harvard Business School, has spent years researching how companies can manage spread-out teams. She advises ensuring that everyone has the right technology, so no one is le behind. Next, managers should acknowledge that the world has changed and work with their teams to figure out new processes. She recommends mee ng at least once a week and not neglec ng fun virtual events, such as group lunches or happy hours, to maintain connec ons. You should also strive to help all employees feel like they’re in the loop and have equal access to you, she says.
BUILD PSYCHOLOGICAL SAFETY Especially in a crisis, subordinates need to be able to tell you the ugly truth—you can’t fix problems if you don’t know about them. In her book The Fearless Organiza on, Harvard Business School professor Amy Edmondson describes decades of research about the importance of psychological safety—”a climate in which people are comfortable expressing and being themselves”—to the performance of businesses and other organiza ons. Its absence is linked to everything from more medical errors to a greater chance of fatal plane crashes. Yet research also shows that leaders’ knee-jerk reac on is to dislike those who cri cize them or deliver negave informa on. Bosses must buffer against this ins nct to avoid tunnel vision, because people want leaders who project confidence but who also invite contradictory views. Brad Bird, the Oscar-winning director of The Incredibles and Ratatouille, consciously sought out “black sheep” at Pixar—those who wanted to do things differently but were being ignored. Thanks to their ideas, Bird’s team was able to make films that were more visually complex on a ghter budget. Given the extent of the current crisis, if people around you are not providing bad news, that’s a signal that you’re opera ng in a culture of denial and fear. Crea ng a sense of safety to try new things is especially important as organiza ons try to adapt quickly to new reali es.
LOOK FOR OPPORTUNITIES The pandemic has caused wrenching disrup ons, but along with threats come opportuni es. Crises can accelerate innova on by forcing us to ques on whether the previous status quo was op mal. In a 1982 paper, management scholar Alan Meyer examined how a group of hospitals in the San Francisco Bay Area reacted to a doctors’ strike. He found that an abrupt change doesn’t have to put organiza ons in jeopardy. Continued on Page 39
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Continued from Page38 Hospitals that framed the strike as an opportunity to learn and improve did be er than those that hunkered down or ignored the protest. Some entrepreneurs are taking advantage of the current reality to push historically rigid industries forward at lightning speed. For example, on April 7, 2020, Stripe CEO Patrick Collision and LinkedIn cofounder Reid Hoffman were among those who launched Fast Grants, which approves grants for COVID-19 research within 48 hours. By May 9, they had reviewed over 4,000 proposals and awarded over $125 million to 127 research teams. In contrast, the typical grant-making process in academia o en takes years. The pandemic can be an opportunity for leaders to do things faster and be er than ever seemed possible. If you’re only playing defense, the professors stress, you’re probably missing out. Source: www.FenderBender.com - Ar cle by Ka a Savchuk
On The Lighter Side: Canadian Police Discover 40 Stolen Cars In Shipping Containers Wri en by Jeffrey N. Ross, Motorious Most of the stolen vehicles were intercepted in Italy on their way to Turkey and Libya. Vehicle the has been on the rise during the COVID-19 pandemic, but this isn’t just a U.S. trend. In a scene right out of Gone In 60 Seconds, police in Italy found shipping containers filled with a total of 30 stolen vehicles (mostly performance and luxury vehicles). These vehicles had been stolen from Canada, and Canadian police found another 10 cars in the process of being shipped overseas. All 40 cars that were seized by police had been stolen from the Greater Toronto Area, and they were being shipped to des na ons in Turkey and Libya. According to a press release issued by the York Regional Police, this discovery came a er the Canada Border Services Agency flagged a suspicious export of a 2018 Audi Q7 back in April. This vehicle had also been on the radar of the YRP as part of an auto finance fraud inves ga on that led to a search warrant being executed at RS Royal Services, a Canadian business that was incorporated in November 2019. The search uncovered these 40 vehicles including a BMW M6 conver ble, Mercedes-AMG GLC Coupe and a Chevy Camaro, and all of the stolen vehicles are worth an es mated $1.8 million Canadian – about $1.3 million USD. The vehicles were seized at two Italian ports (in Salerno and Tauro), and all of the vehicles are being returned to their lawful owners, which at this point is probably the insurance companies that paid out stolen vehicle claims to the original owners. In addi on to these 40 vehicles, Italian news source Ansa.it is repor ng that more than 100 vehicles were intercepted from an airport in Gioia Tauro that were in the process of being sent to Libya. Source: www.Autobodynews.com - Ar cle by Jeffery N. Ross, Motorious
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2020 2 02 0 M o opar p ar M ast aster er s G Gui ui ld O ffii cer s & Com Off Committee m i t t eess Officers: President Ͳ Susan McDaniel Ͳ Bill Luke CJD – Phoenix, AZ Vice President Ͳ Joe McBeth Ͳ Dallas DCJ – Dallas, TX Secretary Ͳ Cody Eckhardt Ͳ Larry Miller DCJR Ͳ Sandy, UT Treasurer Ͳ Don Cushing Ͳ Tasca Automotive Ͳ Johnston, RI Executive Committee Ͳ All Officers Including: Dan Hutton Ͳ Tom O’Brien DCJR Ͳ Greenwood, IN Mike Opperman Ͳ Baxter CDJR Ͳ Omaha, NE Alan Yancey Ͳ Hayes CDJ Ͳ Alto, GA Rick Monteiro Ͳ Jack Powell CJD – Escondido, CA Rick Cutaia Ͳ Rick Hendrick DCJR – Charleston, SC Paul Allred Ͳ Stateline CJD – Fort Mill, SC Steve Hofer – Park Chrysler Jeep – Burnsville, MN Guild Committees
Vendor Committees CDK Global Mick Padgeon Ͳ Fred Beans Auto Group Ͳ Doylestown, PA Dan Hutton Ͳ Tom O’Brien DCJR Ͳ Greenwood, IN (Chair) Paul Allred Ͳ Stateline CJD – Fort Mill, SC Joe McBeth Ͳ Dallas DCJ – Dallas, TX Reynolds & Reynolds Rick Cutaia Ͳ Rick Hendrick DCJR – Charleston, SC (Chair) Randy Rogers Ͳ Huffines CJDR Ͳ Plano, TX Kent Cogswell Ͳ Jack Phelan CDJR Ͳ Countryside. IL Alan Yancey Ͳ Hayes CDJ Ͳ Alto, GA OEConnection & Snap On Business Solutions Dan Hutton Ͳ Tom O’Brien CJD – Greenwood, IN Paul Allred Ͳ Stateline CJD – Fort Mill, SC Mike Opperman Ͳ Baxter CDJR Ͳ Omaha, NE (Chair) Cody Eckhardt Ͳ Larry Miller DCJR Ͳ Sandy, UT
Nada 2020 Planning Jill Vance Ͳ Avenue Event Group, LLC Finance Committee Susan McDaniel Ͳ Bill Luke CJD – Phoenix, AZ Don Cushing Ͳ Tasca Automotive Group Ͳ Johnston, RI Rick Cutaia Ͳ Rick Hendrick DCJR – Charleston, SC Newsletter/Website/Social Media Don Cushing Ͳ Tasca Automotive Group Ͳ Johnston, RI
AER Manufacturing Robert Chatwin Ͳ Larry Miller DCJR Ͳ Sandy, UT (Chair) Shane Birdyshaw Ͳ Benchmark CDJR Ͳ Birmingham, AL John Russo Ͳ Dallas DCJ Ͳ Dallas, TX Ted Hawkins Ͳ Cerritos Dodge Ͳ Cerritos. CA John Waltereit Ͳ Milosch’s Palace CDJR Ͳ Lake Orion, MI Jim Jaeger Ͳ Bosak Motors Ͳ Merrillville, IN (ALT) Vendor Chairmen Paul Allred Ͳ Stateline CJD Ͳ Fort Mill, SC Mike Opperman Ͳ Baxter CJD Ͳ Omaha, NE
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