A panel discussion with leaders from the distribution segment wrapped up the 2006 GAAS in Detroit.

by Michael V. Freeze
Managing Editor, Counterman

DETROIT -- The last, but certainly not least valued discussion of the 2206 Global Automotive Aftermarket Symposium was the Distribution Leaders Panel moderated by AAIA President and CEO Kathleen Schmatz.

The panel members represented some of the top players in the auto parts distribution market: Robert Blair, executive vice president of product for GPI and president of CARQUEST Corp.; Jacques Landreville, president and CEO of Uni-Select; Rollie Olson, CEO of Parts Depot; and Mike Schultz, co-president of Federated Auto Parts.

The distribution leaders discussed the looming problem of returns. In the distribution realm, product returns prove to be the Achilles heel of the market. Blair offered his opinion on some solution to this cumbersome issue.

“The problem lies in the lack of accurate and reliable data,” proclaimed Blair. “[In working on a solution], we know it can be done. Inventory planning is not a science as some would perceive it as.”

While some agreed with that assessment, Olson offered a customer’s perspective to this issue.

“The excess of product inventory has been created by acquisition and consolidation. In other industries, you see the same thing going on,” said Olson. “[Thus, the data inputted] tends to be not accurate. Until we get the trust of the installers, we will continue to see our customers order two sets of auto parts.”

The panel also discussed a wide range of issues such as collaboration, sourcing and manufacturer and customer relations. Landreville touched upon situations where manufacturers today are put in a position where they have to offer limited services to distributors.

“(When dealing with manufacturers’ services), cataloging is something we can’t do without. We can’t do without training nor warranty,” said Landreville. “It comes down to the sales force becoming the major ingredient.”

In closing, Olson suggested that all the innovation in the world wouldn’t mean a thing if the industry doesn’t focus on the basics.

“(For success in our business model), I’m looking for good execution,” said Olson. “The blocking and tackling of it. We like to be leading edge, but by being the best, we must do the fine-tuning. Doing the basics over and over again.”

_______________________________________

Click here to view the rest of today's headlines.